Preliminary Full Year Results

Template
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019


Results for announcement to the market
Name of issuer Cooks Coffee Company Limited
Reporting Period 12 months to 31 March 2023
Previous Reporting Period 12 months to 31 March 2022
Currency
Amount (000s) Percentage change
Revenue from continuing
operations
$6,613 (10.3%)
Total Revenue $6,613 (10.3%)
Net profit/(loss) from
continuing operations
($3,108) (3353.3%)
Total net profit/(loss) ($3,204) (631.5%)
Interim/Final Dividend
Amount per Quoted Equity
Security
It is not proposed to pay a dividend.
Imputed amount per Quoted
Equity Security
Not Applicable.
Record Date Not Applicable.
Dividend Payment Date Not Applicable.
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
Cents Per Security
(12.36)
Cents Per Security
(17.30)
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
None.
Authority for this announcement
Name of person

authorised
to make this announcement
Keith Jackson
Contact person for this
announcement
Keith Jackson
Contact phone number 021 702 509
Contact email address Keith.Jckson@cookscoffeecompany.com
Date of release through MAP

30/05/2023

Unaudited financial statements accompany this announcement.

Appendix 1 Release
30 May 2023
Cooks Coffee Company Limited
This document covers Cooks Coffee Company Limited's unaudited financial results for the year
ended 31 March 2023
A:Cooks Coffee Company Limited
Preliminary announcement for the year ended 31 March 2023
in accordance with Listing Rule 10.4.2 are recorded below.
This report has been prepared in a manner which complies with generally accepted accounting practice and gives a true and
fair view of the matters to which the report relates, and is based on unaudited financial statements. In the prior year, the Audit
Report has made note of Material Uncertainty related to Going Concern.
The accounting policies used in the preparation of these financial statements are consistent with those used in the interim
statements for the six months ended 30 September 2022, and in the audited financial statements for the year ended
31 March 2022.
The Listed Issuer has a formally constituted Audit & Risk Committee of the Board of Directors.
UnauditedAudited
B:Consolidated Statement of Financial PerformanceMar-23Up / DownMar-22
$NZ '000%$NZ '000
Revenue6,613 (10.3%)7,372
Cost of sales(977) 40.0%(1,628)
Gross profit5,636(1.9%)5,744
Operating expenses and staff costs(5,070)1.6%(5,152)
Impairment loss on receivables
(448)
(97.4%)
(227)
Other income632 40.8%449
Operating profit/(loss) before depreciation and amortisation750
(7.9%)
814
Depreciation expense (469) (82.5%)(257)
Operating profit/(loss)281(49.6%)557
Interest Income 372 (67.5%)1,145
Amortisation of intangible assets(381) 17.6%(324)
Impairment of Goodwill(2,385)
60.1%(5,983)
Finance costs(1,108) 45.3%(2,026)
Revaluation of contingent consideration payable-
-
6,431
Profit/(Loss) before income tax(3,221)1510.5%(200)
Income tax benefit/(expense)1132.7%
110
Net Profit/(Loss) for the year from continuing operations(3,108)
(3353.3%)
(90)
Net Profit/(Loss) for the year from discontinued operations
(96)
72.4%
(348)
Net Profit/(Loss) for the year(3,204)(631.5%)(438)
Earnings Per Share (Cents per share):(5.77)(1.04)
Preliminary unaudited full year report on consolidated results (including the results for the previous corresponding year)

UnauditedAudited
C:Consolidated Statement of Financial PositionMar-23Up / DownMar-22
$NZ '000%$NZ '000
Assets
Cash and cash equivalents4451,156
Trade and other receivables1,3231,244
Other current assets793588
Assets classified as held-for-sale16
18
Property, plant and equipment 142150
Right-of-use assets1,604
1,642
Lease receivables19,58219,243
Other non-current assets1715
Total tangible assets23,922(0.6%)24,056
Goodwill3,0725,457
Intangible assets6,8817,262
Total assets33,875(7.9%)36,775
Liabilities
Trade and other payables6,0617,110
Lease liabilities21,31421,146
Borrowings - Loans3,1413,883
Other liabilities9101,095
Deferred tax liabilities1,036
1,143
Total liabilities32,4625.6%34,377
Net assets/(liabilities)1,41341.1%2,398
Equity
Share capital58,34556,897
Accumulated losses(60,192)(56,988)
Foreign currency translation reserve85988
Share based equity reserve2,4012,401
Total equity attributable to equity holders of the Company1,41341.1%2,398
CentsCents
Net tangible assets per share(12.36)(17.30)
UnauditedAudited
D:Statement of Changes in EquityMar-23Up / DownMar-22
$NZ '000%$NZ '000
Profit/(Loss) for the period(3,204)(631.5%)(438)
Net increase in issued share capital1,4484,677
Foreign currency translation reserve771(120)
Movements in equity for the period(985)(123.9%)4,119
Equity at start of the period2,398(1,721)
Share based payment reserve
--
Equity at end of the period1,413(41.1%)2,398
UnauditedAudited
E:Consolidated Statement of Cash FlowsMar-23Up / DownMar-22
$NZ '000%$NZ '000
Profit/(Loss) for the period(3,204)(631.5%)(438)
Add/(Less):
Depreciation expense469257
Impairment loss on receivables448
227
Net foreign exchange (losses)/gains110
230
Revaluation of contingent consideration payable
-(6,431)
Impairment of goodwill2,3855,983
Amortisation of intangible assets
381324
Net movements in working capital(1,073)(784)
Net cash flow from operating activities(484)(23.4%)(632)
Net cash flow from investing activities (56)74.0%(215)
Net cash flow from financing activities (171)(115.4%)1,110
Net (decrease)/increase in cash held(711)(370.3%)263
Opening bank balance1,156886
Effect of exchange rate changes on foreign currency balances
-
7
Closing bank balance4451,156
Made up as follows:
Cash and cash equivalents445(61.5%)1,156

F:Material Acquisition of SubsidiariesN/A
G:Material Disposal of SubsidiariesN/A
H:Material Investment in AssociateN/A
I:Issued and Quoted Securities at End of Current Period
Category of Securities IssuedNumberQuoted
ORDINARY SHARES:
Total number of shares on issue60,726,349 59,519,349
Shares issued during the current period 7,666,854 7,666,854
J:Comments by Directors
(a)Material factors affecting the revenues and expenses of the group for the current full year or half year
Refer to Commentary.
(b)Significant trends or events since the end of the current full year or half year
Refer to Commentary.
(c)Changes in accounting policies since last Annual Report and/or last Half Yearly to be disclosed:
Nil
(d)Critical Accounting Policies - Management believes the following to be critical accounting policies. That is they are both important
to the portrayal of the Issuer's financial condition and results, as they require management to make judgments and estimates
about matters that they are inherently uncertain
• Treatment of Leases
• Revenue from Contracts with Customers
• Discontinued Operations
• Impairment of Assets
• Amortisation of Intangibles and Goodwill
• Contingent Consideration
NZ IFRS 16 "Leases"
a) As a lessee
b) As a lessor
NZ IFRS 15 "Revenue from Contracts with Customers"
Royalty income from Franchise or Master Franchise Agreements (MFAs)
The Group has applied judgement to determine the lease term for some lease contracts in which it is a lessee that include renewal or
termination options. The assessment of whether the Group is reasonably certain to exercise such options impact the lease term, which
significantly affects the amount of lease liabilities and right-of-use assets recognised.
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured
at cost, and subsequently at cost less any accumulated depreciation and impairment losses and adjusted for certain remeasurements of the
lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted
using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Generally,
the Group uses its incremental borrowing rate as the discount rate.
On 31 March 2023, Cooks Coffee Company Limited has 59,519,349 quoted shares and
1,207,000 non-voting shares on issue.
When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease.
To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and rewards
incidental to ownership of the underlying asset, or the right-of-use asset in the case of a sublease. If this is the case, then the lease is a
finance lease; if not, then it is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the
lease is for the major part of the economic life of the asset.
Where the lease is classified as an operating lease, the Group recognises the lease payments from the operating lease as income on a
straight-line basis.
Under NZ IFRS 15 Revenue from Contracts with Customers, revenue is recognised either at a point in time or over time, or when (or as) the
Group satisfies performance obligations by transferring the promised goods or services to its customers.

Discontinued Operations
Goodwill Impairment
30 May 2023
(signed by) Authorised Officer of Listed Issuer(date)
Franchise fees
Management have assessed the Value in Use for the UK Triple Two business and as a result have determined a Goodwill impairment charge
of $2.385m. Management reviewed actual performance since the date of acquisition against the original forecasts, impacted initially by the
Covid pandemic and with key receivables being written off, when reassessing the FY24, FY25 and FY26 forecasts. Additionally,
consideration was given to existing market constraints in the UK, such as those associated with the supply of materials and labour, which
could potentially impact on the construction and fit-out of new cafes.
The Group recognises revenue derived from its Country & Regional franchise operations on a straight-line basis over a period of time that
the franchise agreement is in place, which is generally 10 years. This is the period of time over which the performance obligation is satisfied.
Payment is received upfront upon signing the franchise contract.
The transaction price includes a variable price consideration for the possible transfer of franchise rights. This is unknown until and if the
transaction is completed. Given the high uncertainty of this transfer, the transaction price for franchise contracts is not adjusted for these
transferred franchise rights. Revenue from the sale of individual café franchises is recognised over time.
The Group recognises Franchise Fees derived from the franchise agreement entered by Triple Two Coffee at the point in time when the
The Group recognises the Territory Fee over a period of time that the franchise agreement is in place, which is generally 10 years. This is the
period of time over which the performance obligation is satisfied. Payment is received upon signing the franchise contract.
Other Revenue
Other revenue includes services to independent franchisees or third parties received by the Group.
The UK Sunderland store is the last in discontinued operations still to be closed. The lease for this store is currently being renegotiated, and
the Group expect this to be sold in FY2024.
The Group recognises royalty revenue derived from its Franchises and MFAs at a point in time, based on sales by Franchisees that are
reported back to Company on a monthly basis for sales that occurred in that month.

Appendix 2 Release
Cooks Coffee Company Limited
UnauditedUnauditedUnaudited
31/03/2023
Global
Franchising &
Retail
UK & IRE
Franchising
New Zealand
Total
Global operational splits$'000$'000$'000$'000
Revenue
2376,376-6,613
Grant and other income
-295-295
Release of liabilities
--337337
Raw materials and consumables used
-(977)-(977)
Depreciation expense
-(466)(3)(469)
Impairment loss on receivables(124)(324)-(448)
Net foreign exchange (losses)/gains(9)(23)(78)(110)
Employee costs-(2,295)(219)(2,514)
Other expenses(16)(1,242)(1,188)(2,446)
Operating profit/(loss)881,344(1,151)281
Finance costs(1)(164)(571)(736)
Amortisation of intangible assets-(381)-(381)
Impairment of goodwill-(2,385)-(2,385)
Profit/(loss) before income tax87(1,586)(1,722)(3,221)
Income tax (expense)/credit
-113-113
Profit/(loss) for the year from continuing operations87(1,473)(1,722)(3,108)
Non-current assets
Intangible assets
425,3581,4816,881
Property, plant and equipment
8458-142
Right of use assets
-1,604-1,604
Goodwill-3,072-3,072
Unaudited
31/03/2023UK Retail
Total
Global operational splits$'000$'000
Revenue
464464
Other income
-
Raw materials and consumables used
(149)(149)
Depreciation expense
(3)(3)
Property related costs-
Net foreign exchange (losses)/gains-
Employee costs(198)(198)
Other expenses(205)(205)
Operating loss(91)(91)
Finance costs(5)(5)
Loss before income tax(96)(96)
Income tax (expense)/credit
--
Loss for the year from discontinued operations(96)(96)
Non-current assets
Property, plant and equipment
1414
Assets held for Sale
77
Continuing Operations
Discontinued Operations

AuditedAuditedAudited
31/03/2022
Global
Franchising &
Retail
UK & IRE
Franchising
New Zealand
Total
Global operational splits$'000$'000$'000$'000
Revenue
2557,11617,372
Grant and other income
-449-449
Raw materials and consumables used
-(1,628)-(1,628)
Depreciation expense
(1)(253)(3)(257)
Impairment loss on receivables(123)(104)-(227)
Net foreign exchange (losses)/gains(4)(171)(55)(230)
Employee costs(64)(2,060)(378)(2,502)
Other expenses(42)(1,684)(694)(2,420)
Operating profit/(loss)211,665(1,129)557
Finance costs(15)10(875)(880)
Reduction of contingent consideration payable-6,431-6,431
Amortisation of intangible assets-(324)-(324)
Impairment of goodwill
-(5,983)-(5,983)
Profit/(loss) before income tax61,799(2,005)(200)
Income tax (expense)/credit
-110-110
Profit/(loss) for the year from continuing operations61,909(2,005)(90)
Non-current assets
Intangible assets
425,7401,4817,263
Property, plant and equipment
11463150
Right of use assets
-1,641-1,641
Goodwill
-5,457-5,457
Audited
31/03/2022UK Retail
Total
Global operational splits$'000$'000
Revenue
620620
Raw materials and consumables used
(183)(183)
Depreciation expense
(100)(100)
Employee costs(319)(319)
Other expenses(329)(329)
Operating loss(311)(311)
Finance costs(3)(3)
Interest on bank and other borrowings(34)(34)
Loss before income tax(348)(348)
Income tax (expense)/credit
--
Loss for the year from discontinued operations(348)(348)
Non-current assets
Property, plant an equipment
66
Assets held for Sale
1818
Discontinued Operations
Continuing Operations

---

NZX Release
30 May 2023

Cooks Coffee
(“Cooks Coffee”, the “Company” or the “Group”)

Preliminary results for the year ended 31 March 2023

Building a family of brands with community spirit

Cooks Coffee (NZX:CCC; AQUIS:COOK), the international coffee focused cafe chain and parent
company of the Esquires and Triple Two brands, which is dual listed on the Aquis Growth
Market in London and the NZX in New Zealand, announces the Company’s Preliminary Report
for the financial year ended 31 March 2023.

Highlights

- Total Franchisee store sales in the UK and Ireland businesses up 24% at NZ$53.6m
(£27.6m). Group royalty income is derived from these numbers.
- Recurring Group revenue up 15% at NZ$3.8m (£2.0m)
- Group revenues in the Year of NZ$6.6m (£3.4m) down 10% on prior year NZ$7.4m
(£3.8m)
- EBITDA of NZ$0.75m (£0.39m), impacted by credit impairment of NZ$0.45m (£0.23m)
- Net loss before tax of NZ$3.2m (£1.7m), reflecting the combined NZ$3.2m write down
of receivables and impairment of goodwill and intangible assets relating to the Triple
Two business
- 86 cafe sites in the UK and Ireland as at 31 March 2023 up from 82 as at 31 March
2022
- Cooks Coffee dual listed on the AQUIS Growth market in November 2022
- Appointed Elena Garside as a UK based Non-executive Director
- An additional 5 stores have been opened in the UK and Ireland post year end with
further store openings planned


Cooks Coffee continued to see strong growth across its estate during the year, with its
Franchisees’ outlet sales in the UK up by 18% and up by 41% in Ireland. Like for like sales
were up 13% in the UK and 29% in Ireland, reflecting in part the timing of the removal of Covid
restrictions in each country. The overall increase in sales from stores that operated in the
reported financial year and the prior financial year was 17%.

Group revenues for the year decreased 10% to NZ$6.6m (£3.4m), reflecting lower than
anticipated one off revenue streams from the opening of new stores. These non-recurring

revenues declined 30% to NZ$2.86m (£1.48m) from the prior year. The non-recurring
revenues in the previous financial year included income relating to the release of franchise
fees on hold over the Covid period as well as a significant number of new stores opened by
Triple Two. New store construction and fit out work is a feature of the Triple Two model,
which operates an internal construction company. With a lesser number of stores opened
during the year income was down but there remains a strong pipeline of prospective
franchisees and with operational improvements in the business it is expected that growth will
continue in the future.

A number of planned store openings during the 31 March 2023 financial year (“FY23”) were
deferred into the new financial year due to the effects of supply chain disruptions in Q3 and
Q4, which now appear to be easing. In addition, the Group has a strong pipeline of further
new stores planned for the current financial year to build on its position as the fourth largest
coffee focused café chain in the UK.
Commenting, Cooks Coffee Executive Chairman Keith Jackson said: “We are pleased to
report strong sales growth across our existing estate of coffee stores as we continue our
expansion programme of new store openings. Whilst the delay in certain store openings,
particularly in the Triple Two business and the consequential impact of the loss of capital
related revenues, has impacted the Group’s financial performance for the year ended 31
March 2023, this has been a transformational period for the Group. We have emerged
strongly from the pandemic, which clearly impacted our business. We look forward with
confidence to an improved financial performance in the current financial year and to updating
on further progress, in particular in relation to the numerous store openings we have
planned.”


Operational Business Performance

UK & Ireland

86 Group sites in the UK and Ireland as at 31 March 2023, up from 82 as at 31 March 2022.

Esquires Coffee UK store numbers increased to 51 at 31 March 2023, from 47 as at 31 March
2022, with seven new Esquires stores opened and 3 closed.
The Triple Two network opened four new stores during the year and closed six with 18 Triple
Two cafes operating at the end of the financial year.
In Ireland, outlet numbers at the end of the year were 17 and there is an encouraging pipeline
of new stores in development for the balance of 2023 and beyond.

Global

Cooks operating revenue in the global segment was in line with the previous financial year as
the international franchised markets continue to recover, with Saudi Arabia showing growth
at an accelerated rate.

Balance Sheet
Total equity in the company reduced to NZ$1.4m (£0.7m) reflecting the NZ$3.2m write down
of receivables and the impairment of goodwill and intangible assets relating to the Triple Two
business.

The Directors assessed the ‘value in use’ for the Triple Two business unit as at 31 March 2023
and as a result of this assessment impaired goodwill by NZ$2.4m (£1.2m). The main
considerations for this impairment related to reassessing forecasts and the likely slower than
planned return to a higher growth environment. Cooks is addressing structural issues with the
Triple Two business to improve the mix between recurring revenue and one-off new store
related income streams.

Group share capital increased by NZ$1.4m (£0.7m) during the year, a combination of debt
conversion and cash, whilst borrowings reduced by NZ$0.7m (£0.4m).

Summary
The year has shown the benefits of the resilience of the Company’s franchise model and the
importance of establishing recurring revenue streams. Through the opening of additional
outlets and the continuing support provided to the Group’s existing network, the Group
intends to grow its current base and continue to build a strong network of quality outlets.
The performance in the year has also highlighted the difference in the maturity and business
models of the long-established Esquires brand, that has been operating for more than 20
years, and the newer Triple Two brand. Esquires has recurring revenues of approximately 85%
of its total revenues as compared to Triple Two that has new store related revenues of
approximately 90% of its total revenues as it looks to build the store network.
The Group has two strong brands and an exciting pipeline of opportunities as it continues its
commitment to building a family of ethical brands with community spirit. We look forward to
making further progress and to an improved financial performance in the current financial
year.



Keith Jackson
Executive Chairman

About Cooks Coffee

Cooks Coffee Company operates in world markets and is listed on the NZX market operated
by NZX Limited in New Zealand under the code CCC and on the AQUIS Growth market in the
UK under the code COOK. It owns the intellectual property and master franchising rights to
Esquires Coffee Houses worldwide (excluding New Zealand and Australia) and Triple Two
Coffee globally. Cooks currently operates or franchises Esquires Coffee in the United Kingdom,
Ireland, Portugal, Bahrain, Kuwait, Saudi Arabia, Jordan, & Pakistan; and Triple Two Coffee in
the United Kingdom. For more information visit: www.cookscoffeecompany.com