17 Dec 2013

Cooks Global Foods says operating businesses profitable

7:38 am on 17 December 2013

The company with overseas rights to the Esquires coffee brand says its businesses are sound and profitable.

That's even though the first-half report for Cooks Global Foods shows a loss for the six months to September of $831,000.

The shell company is listed on the stock exchange's alternative market.

It has intellectual rights for Esquires outlets in places outside New Zealand, Australia and Canada.

The company's chair Keith Jackson says the operating loss is from the one-off transaction and legal costs of bringing the businesses together.

He says the operating businesses are profitable and the second half of the year is expected to be positive, although the first half one-off costs will still affect the full-year result.

Mr Jackson says the company is looking to take advantage of a rapidly growing coffee industry.

And he's confident of good support for the company's share purchase plan letting shareholders invest up to $15,000.

Mr Jackson expects a more than 50% uptake and says other parties have expressed interest in taking up any shortfall.

He says he's confident of placing the $6.75 million which has been identified as the maximum to be raised under the share purchase plan.

Mr Jackson says four Esquires stores have been added in a month in China and the Middle East.

Talks are underway to acquire the Canadian rights.