Coffee bar operator Coffee Republic said its first-half operating losses narrowed to £811,000 versus £886,000 last time.

The Coffee shop operator said revenues declined to £2.9 million from £5.4 million as the company converted some of its owned-outlets into franchises.

It added it had seen like-for-like sales growth of 4.2% in the six months against -1% the previous year. The group also announced the appointment of James Cameron Muirhead as finance director.

Coffee Republic, which operates 86 coffee bars internationally, expects to reach 100 bars by the end of the calendar year. The group added that eight international master franchises have been finalised and the international expansion of the chain should accelerate over the next year.

Management said it expects the potential for growth in certain Asian markets should, assuming political and economic stability, exceed that of European and American markets.