Madisons Coffee PLC has warned market watchers that its results for the year to 24 July will be worse than expected.

The brand has under performed in London, with like-for-life sales flat in the full year, and the company also revealed that it will sell eight sites in the capital to US coffee house giant Starbucks Corp. Subject to landlord approval, the Financial Times reported that the deal will be worth £1.4m (US$2.04m).