London chain Coffee Republic has cut costs at its head office by 25%, after reporting that the value of its net assets had fallen below half the value of paid up share capital.

At an Extraordinary General Meeting on 8 February, a statutory requirement under the Companies Act 1985 when this situation occurs, the 42-shop coffee chain said that costs will be reduced until it has expanded its portfolio.

Chairman Peter Breach said: "Interest in the brand remains encouraging and the pipeline of franchisees is strong. I remain confident that over the next year the domestic portfolio will almost double in size and overseas Coffee Republic outlets will start trading."