Starbucks blames Brexit for 61% profits slump
Starbucks has seen its UK profits drop 61% - a slump it is blaming on Brexit and a slowing economy.
The world-famous US coffee chain, which has 894 stores in Britain, saw pre-tax profits collapse to £13.4 million in the year to October 2016, according to accounts filed at Companies House.
Turnover also fell, from £405.6 million to £379.9 million and like-for-like sales growth dropped from 3.8% to 1% in the period.
Starbucks added that it was "investing significantly to drive innovation in our food and coffee offering" and said that the UK market is still one of the most important in Europe, the Middle East and Africa.
The chain said it will also take measures to mitigate the impact of falling sales, including closing unprofitable stores and reducing costs.
Starbucks, which came under intense fire in 2012 for the low amount of tax it pays in the UK, said it paid £6.7 million in total taxes last year versus £8.4 million in 2015.