New openings hit Madisons's bottom line

The cost of opening new stores has added an extra £500,000 to losses at coffee bar chain Madisons.

Pre-tax losses for the year to 25 June were £1.7m, compared with £1.2m last year. Turnover rose by 97% to £9.6m.

Chairman Nigel Whittaker said: "The losses are in line with earlier forecasts and can be largely attributed to the continued expansion of our successful retail operations."

During the period, Madisons opened 10 new coffee bars and also bought two Richoux coffee shops from Groupe Chez Gérard.

Since the end of the financial year, it has added the four remaining Richoux restaurants, all in London, at a cost of £2.7m.

Whittaker said the four restaurants turned over £5.1m during the year to 26 June and were forecast to make a "positive contribution" to the group's results during the coming financial year. They will retain the Richoux name.

Madisons now operates 44 stores. It plans to concentrate on acquiring and opening new outlets in areas such as high streets, retail parks, shopping centres and airports.

It may also enter into joint ventures with other companies such as airlines and train operators.