COFFEE Republic said its recovery was on track after a string of disposals and a change to its deli format helped arrest a slump in sales.

The group, which has been shedding under-performing bars to focus on a profitable core of 50, said like-for-like sales this month and last were one per cent ahead of a year ago.

This was in contrast to its performance over the year to March 28, when same-store sales fell 2.3 per cent, sparked by poor trading in central London.

However, losses for the same period narrowed to £1.7m from £9.8m and were described as an important milestone after Coffee Republic reduced its estate and secured new financing.

At the heart of its turnaround plan was a move away from standard coffee bars to the deli format, which offers fresh sandwiches and hot food counters.

It also got rid of Friends-style sofas as it battled to improve margins and cut exposure to competition.

Four sites are trading with the new format and sales at its most recent opening at Heathrow Airport are up 30 per cent on a year earlier.