Caffè Nero will open its 200th espresso bar by the end of the month and continues to close the gap on Costa, Britain's number-two chain after the market leader, Starbucks, the company said yesterday.

The Italian-branded chain, founded by the American entrepreneur Gerry Ford 15 years ago, more than doubled its underlying pre-tax profit for the six months to November 30 last year, to £2.14m. Since then, same-store sales have grown by 8.5% in December and January.

Mr Ford said the group's market share had risen by 4.3 percentage points to 11% over the last two and a half years. Costa, which is owned by the leisure conglomerate Whit bread, has 18% of the branded coffee bar market while Starbucks has 24%.

Mr Ford has resisted step ping up Caffè Nero's already frenetic store-opening programme and will continue to open about one store a week this year.

He said the group was also considering alternative expansion plans including a move on to the continent, the sale of Caffè Nero branded coffee in supermarkets or even a move into CD sales. "That may sound ridiculous but it has worked well for Starbucks in the States. We are always getting customers asking: 'How can we buy your music?' "

Shares in Caffè Nero closed up 12p at 135.5p yesterday after analysts raised full-year pre-tax profit forecasts to £4.6m. The stock had been trading at below 25p 18 months ago before beginning a concerted rally.

Mr Ford put Caffè Nero's recent growth down to the benefits of scale. "You build your central infrastructure, then as long as each new site you open is reasonably profitable, revenues drop through to the bottom line ... We haven't changed the business model," he said.

Analysts at Numis said: "There is always the concern that Caffè Nero will just get steamrollered by the Starbucks juggernaut but its recent record provides no evidence to support that argument as yet."

Caffè Nero, which acquired 10 sites from Coffee Republic last year, is expected to double its 200 stores over the next five years. In the shorter term, its £12m net debt is expected to be reduced.