Starbucks UK has reported a 74% drop in profits from £25.7m to £6.6m which it blamed on “significant economic and geopolitical headwinds” such as Brexit affecting sales.

Reporting financial results for the year ending October 2016, the UK arm of Starbucks’ operating profit fell from £405.6m the previous year to £379.8m, while gross profit fell 24.5% to £80.9m, from £107.1m in 2015.

In his strategic report, financial director Paul Harris described a climate of slowing economic growth, the impact of Brexit and security concerns contributing to weakening consumer confidence.

He wrote: “The general consumer environment was more cautious than the prior year, with footfall noticeably down across the store estate leading to lower sales.”

The company said the transfer of equity stores to license (nine) and franchise partners (105) was continuing with encouraging results and more expected.

Company owned stores fell by 62 from sales or closures

The report said that the speciality coffee market was highly competitive, with the main players seeking to grow market penetration.