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Expected Administration of
Triple Two Coffee Business
Cooks Coffee (NZX:CCC; AQUIS:COOK) announces that the Company expects to shortly appoint administrators to place its Triple Two coffee franchise business, comprising Triple Two Holdings Limited and its subsidiaries, into an insolvency process.
Triple Two was growing rapidly before the Covid-19 pandemic and had shown continuing momentum in FY22. However, in recent times, this momentum has not been able to be maintained and the business has been adversely impacted by the current market environment. Currently there are 11 operating Triple Two franchised stores.
The Company's larger Esquires business continues to perform in line with management's expectations and is making a positive contribution to the Group. The Esquires business will not be affected by any Triple Two insolvency process.
The Company will make further announcements in due course as appropriate.
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FY23 Financial Highlights
Franchised store sales up 24% at NZ$53.6m (£26.7m);
Group royalty income is derived from these numbers.
Revenue Analysis FY23 - FY22 | ||
4,000 | ||
3,500 | 3,756 | 3,652 |
3,000 | 3,271 | |
2,500 | ||
2,000 | 2,840 | |
1,500 | ||
1,000 | ||
500 | ||
0 |
Operating Revenue | Capital Revenue | |
Recurring Group revenue up 15% at NZ$3.8m (£1.9m).
Group operating revenues in the year of NZ$6.6m (£3.4m).
Period EBITDA of NZ$0.86m (£0.43m) including NZ$0.11m of foreign exchange translation losses making reported EBITDA NZ$0.75m (£0.38m).
EBITDA/Sales for FY23 of 13.0% compares to 14.2% for FY22.
Net loss before tax of NZ$3.3m (£1.7m), reflecting the combined NZ$3.3m write down of receivables and impairment of goodwill and intangible assets relating to the Triple Two business.
Revenue Analysis:
NZ$000's | FY23 | FY22 | FY23 % |
Operating Revenue | 3,756 | 3,271 | 114.8% |
Capital Revenue | 2,840 | 3,652 | 77.8% |
Grants & Other Revenue | 632 | 449 | 140.8% |
TOTAL BUSINESS REVENUE | 7,245 | 7,821 | 92.6% |