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2014-06-24_Preliminary Results Announcement

Embargoed until 7am, 24 June 2014
 
 
Carpetright plc
Preliminary Results Announcement for the 52 weeks ended 26 April 2014
 
Carpetright plc, Europe’s leading specialist carpet and floor coverings retailer, today announces its preliminary results for the 52 week trading period ended 26 April 2014.
 
 
Group Financial Summary
 

 
2014
£m
2013
£m
Change
Group revenue (Note 1)
447.7
457.6
(2.2%)
·         UK
375.8
381.6
(1.5%)
·         Rest of Europe
71.9
76.0
(5.4%)
 
 
 
 
Underlying operating profit/(loss) (Note 2)
6.9
11.4
(39.5%)
·         UK
10.7
10.9
(1.8%)
·         Rest of Europe
(3.8)
0.5
 
 
 
 
 
Underlying profit before tax (Note 2)
4.6
9.7
(52.6%)
Underlying earnings per share
4.7p
9.6p
(51.0%)
 
 
 
 
Exceptional items (Note 4)
(11.8)
(14.8)
 
Statutory loss before tax
(7.2)
(5.1)
 
Basic loss per share
(5.3p)
(9.8p)
 
 
 
 
 
Net debt
11.1
10.2
Up £0.9m
Dividend per share
Nil
Nil
 

 
 
Highlights
 
UK
      Like-for-like revenues declined by 0.2%. Excluding the expected contraction in sales from the wholesale business, the core retail business like-for-like grew by 0.5%.
      Gross profit percentage increased by 100 basis points to 62.5% (2013: 61.5%).
      89 stores refurbished in the period taking the total to 275 stores, representing 58% of the trading estate.
      Store base reduced by a net six during the year to 472 stores.
 



 
Rest of Europe
      Revenue in local currency, declined by 8.6% with like-for-like sales down by 8.6%.
      Difficult trading conditions in the Netherlands, where the floor coverings market remains weak. 
      Number of stores remains unchanged at 142, having opened one and closed one store during the period.
 
Exceptional charges of £11.8m related to a combination of net losses on disposal of properties, onerous lease provisions and non-cash impairment of property assets.
 
Board succession plans confirmed – Wilf Walsh to join as CEO on 21 July 2014, at which point Lord Harris will become non-executive Chairman.
 
Commenting on the results Lord Harris, Executive Chairman, said:
 
“While indicators point to an overall improvement in UK economic performance over the past twelve months, it has been a challenging time for the Group with our markets remaining highly competitive and deal-driven.
 
“The performance of the business in the Rest of Europe is principally a reflection of the continued difficult trading in the Netherlands. Whilst this business reported a loss for the year, it remained cash generative.
 
“Against this backdrop, we continue to take steps to develop the business. While we anticipate trading conditions will remain challenging, we expect these actions will underpin an improvement in Group performance in the new financial year.”
 
 
 
 
 
 
 
Notes
1.       All sales figures are quoted after deducting VAT.
2.       ‘Underlying’ excludes exceptional items, related tax and an exceptional tax credit.
3.       Like-for-like sales calculated as this year’s net sales compared to last year’s net sales for all stores that are at least 12 months old at the beginning of our financial year. Stores closed during the year are excluded from both years. No account is taken of changes to store size or introduction of third party concessions. Sales from insurance and house building contracts are supplied through the stores and included in their figures.
4.       Exceptional items comprises, net losses on disposal of properties of £1.6m; onerous lease provisions of £6.6m; non-cash impairment of freehold property assets of £1.9m; impairment of other assets of £0.5m; and restructuring costs of £1.2m.
5.       Comparative period for the year is the 52 week period ended 27 April 2013.

2014-06-24_Board Changes

Embargoed until 07:00 24 June 2014
 
Carpetright plc
(“Carpetright” or “the Company”)
 
Board Changes
 
Further to its announcement of 21 May 2014, Carpetright announces that Lord Harris will remain as non-executive Chairman of the Company following the Annual General Meeting on 4 September.  He will continue in this role until such time as a new Chairman has been appointed and may remain on the Board in a non-executive capacity following the appointment of a new Chairman.
 
Baroness Noakes is continuing to lead the search for a new Chairman and will step down from the Board once this appointment has been made.
 
As part of this transition process, Baroness Noakes is stepping down from the Audit Committee, Remuneration Committee and Customer and Corporate Responsibility Committee with immediate effect.
 
Andrew Page has been appointed to the Audit Committee with immediate effect.
 
In addition Alan Dickinson has notified the Company that he will not seek re-election at the Annual General Meeting to be held on 4 September 2014 and will retire from the Board on conclusion of the meeting.
 
-Ends-
 
 
For further enquiries please contact:
 

Carpetright plc
Tel: 01708 802000
Lord Harris, Executive Chairman
 
Neil Page, Group Finance Director
 
 
 
Citigate Dewe Rogerson
Tel: 020 7638 9571
Kevin Smith / Lindsay Noton
 

 
 

2014-05-21_Management succession and Board changes

Carpetright plc
(“Carpetright” or “the Company”)
 
Management Succession Plan & Board Changes
 
Carpetright, Europe's leading specialist carpet and floor coverings retailer, announces that it has appointed Wilf Walsh to the Board as Chief Executive with effect from 21 July 2014. Mr Walsh’s career includes 20 years of consumer/retail experience including eight years as Managing Director of Coral and six years at HMV.  Most recently he has been chairman of Fortuna Entertainment Group NV, a listed betting and gaming group operating in Central Europe.
 
Lord Harris of Peckham, currently Executive Chairman, will become non-executive Chairman of Carpetright from 21 July 2014 and will then retire from the Board at the conclusion of Company’s Annual General Meeting on 4 September 2014.  Lord Harris will remain available to Wilf Walsh in an advisory capacity thereafter, following his retirement from the Board.  
 
A search for a new Chairman will now commence. If this search has not been concluded by the time of the AGM, Baroness Noakes, currently Deputy Chairman of Carpetright, will become Interim Chairman until such time as a permanent appointment is made.
 
Lord Harris said: “I will be 72 this year and shareholders will be aware that I have been planning a managed hand-over of my responsibilities for some time. I am delighted that Wilf Walsh has agreed to join Carpetright as Chief Executive. He has strong retail and online credentials and a successful track record in managing multi-site consumer-facing businesses. I am confident that I will be leaving the business in safe hands.”
 
Wilf Walsh said: “Carpetright is a great brand and I am looking forward to working with the team to drive profitability and share going forward. Lord Harris has 56 years in the carpet business and will be a hard act to follow but the market-leading position he has built for the business is an excellent place from which to start.”
 
The following management changes are also being announced today:
 
·         Martin Harris, who joined Carpetright in 1991 and has been on the Board since 1997, latterly as its Group Development Director, has informed the Board that he will step down from his post and the Board at the conclusion of the AGM on 4 September 2014 and will leave the Company to pursue other business opportunities.
  
·         Graham Harris, who was appointed to the Board in October 2013 as its Chief Operating Officer, has left the Company with immediate effect as this role has become redundant given the appointment of the new Chief Executive.
 
Wilf Walsh is currently a director of Fortuna Entertainment Group NV and will be retiring from this post at the AGM on 6 June 2014. Other than this directorship no other information is required to be disclosed pursuant to paragraph LR 9.6.13 of the Listing Rules of the Financial Conduct Authority in relation to his appointment of as a Director of Carpetright.
 
 



 
For further enquiries please contact:
 

Carpetright plc
Tel: 01708 802000
Lord Harris, Executive Chairman
Baroness Noakes, Deputy Chairman
 
Neil Page, Group Finance Director
 
 
 
Citigate Dewe Rogerson
Tel: 020 7638 9571
Kevin Smith / Lindsay Noton
 

 
 
 
A copy of this announcement is available on our website www.carpetright.plc.uk.
 
 
Notes to Editors
 
Wilf Walsh – Career Biography
 
2009 – Present                 Fortuna Entertainment Group NV
2012 – Present   Chairman
2011 – 2012         Vice Chairman and Interim CEO
2009 – 2012         Vice Chairman and Head of Strategy
 
2000 – Present                 Gala Coral Group
2010 – Present   Non-Executive Director
2000 – 2008         Managing Director, Coral
 
1994 – 2000                         HMV Media Group
Managing Director, HMV Germany
Operations Director, HMV UK and Ireland
Personnel Director, HMV UK and Ireland
 
1991 – 1994                         Pepsi Cola International
 
1986 – 1991                         Scholl Consumer Products
 

2014-03-26_Trading update

26 March 2014
Carpetright plc
 
Trading Update
 
Carpetright plc, Europe’s leading specialist carpet and floor coverings retailer, today announces an update on trading for the 8 weeks ended 22 March 2014 and expectations for the full year.
 
Summary
·         Whilst our UK like-for-like sales performance was positive in the period, the pace of recovery seen in Q3 was not sustained and the Group is yet to see any significant benefit from the improvement in UK housing market transactions. 
·         This factor, along with continued difficult trading conditions in the Netherlands, means that we now expect underlying pre-tax profit for the year ended 26 April 2014 will be in the range of £3.5m to £5.5m.
 
·         UK
o   Like-for-like sales (note 2) in the UK increased by 0.2%. Total sales declined by 0.8%.
o   Full year gross margin expected to be 80-100 basis points above the prior year.
           
·         Rest of Europe
o   In local currency terms, like-for-like sales in the Rest of Europe (Netherlands, Belgium and the Republic of Ireland) decreased by 5.3%.  Total sales declined by 5.3%. After the impact of currency movements this translates to an 8.5% decrease in total sales.
o   Nick Worthington, previously Chief Executive of Dreams, appointed Operations Director – Europe, with effect from 18 March 2014. 
o
 
Lord Harris, Executive Chairman, said:
 
“In our last trading statement, we reported that like-for-like sales in the UK were volatile, and this remains the case. Nevertheless, based on previous experience we had expected to see some recovery as UK housing transaction volumes improved.  In the event, this has yet to materialise and the momentum established in the third quarter was not sustained. Excluding the expected decrease in sales from our wholesale business, the core retail business would have reported a like-for-like increase of 0.9%.  
 
“Trading in our Rest of Europe business continues to be dominated by the extremely difficult economic conditions in the Netherlands.  The leadership of the Rest of European business has been strengthened with the recent appointment of Nick Worthington as Operations Director - Europe. Nick brings with him a wealth of retail experience, with a strong focus on home furnishings.
 
“With the important Easter trading period still to come, we are continuing to concentrate on a range of self-help measures as we seek to improve the Group’s performance.” 



 
The Group will report its preliminary results for the financial year ending 26 April 2014 on Tuesday, 24 June 2014.
 
 
Analyst conference call
Lord Harris will host a conference call for analysts at 08:30 GMT today.
 
The dial in number is + 44 (0) 20 3003 2666 with the passcode ‘Carpetright’.
 
 
Thereafter, for further enquiries please contact:
 
Carpetright plc
Lord Harris, Executive Chairman
Neil Page, Group Finance Director
Tel: 01708 802000
 
Citigate Dewe Rogerson
Kevin Smith / Lindsay Noton
Tel: 020 7638 9571
 
A copy of this trading statement will be available on our website www.carpetright.plc.uk today from 7.00am.
 
Notes
1.       All sales figures are quoted after deducting VAT.
2.       Like-for-like sales calculated as this year’s net sales compared to last year’s net sales for all stores that are at least 12 months old at the beginning of our financial year. Stores closed during the year are excluded from both years. No account is taken of changes to store size or introduction of third party concessions. Sales from insurance and house building contracts are supplied through the stores and included in their figures.
3.       There have been no significant changes to the Group’s financial position during the period.
 
 
 
 
 
 



 
Appendix 1: Group Sales
 

 
Current Financial Year
Previous Financial Year
 
8 weeks to
22 March
 2014
13 weeks to
25 January
 2014
(previously reported)
21 weeks to 22 March 2014
47 weeks to
22 March
 2014
 
12 weeks to
20 April
2013 (previously reported)
51 weeks to
20 April
2013 (previously reported)
UK
 
 
 
 
 
 
-   Total
(0.8%)
0.6%
0.1%
(1.1%)
4.4%
0.6%
-   Like-for-like
-   Like-for-like excluding wholesale
0.2%
0.9%
1.9%
2.5%
1.3%
1.7%
0.2%
0.9%
5.6%
6.7%
2.5%
4.4%
 
 
 
 
 
 
 
Rest of Europe
 
 
 
 
 
 
-   Total (in local ccy)
(5.3%)
(7.5%)
(6.7%)
(8.0%)
(10.2%)
(10.1%)
-   Like-for-like (in local ccy)
(5.3%)
(7.7%)
(6.8%)
(8.0%)
(10.2%)
(10.5%)
-   Total (in GBP)
 
(8.5%)
(6.3%)
(7.4%)
(4.7%)
(7.3%)
(14.8%)
 
Group Sales (in GBP)
 
 
(2.2%)
 
(0.5%)
 
(1.1%)
 
(1.7%)
 
2.1%
 
(2.3%)

 
 
Appendix 2: Store portfolio
 

 
Current Financial Year
Previous Financial Year
Store portfolio
22 March 2014
25 January 2014
 (previously
reported)
26 January 2013
(previously
reported)
Year end
27 April 2013
(previously
reported)
 
Stores
Sq ft
Stores
Sq ft
Stores
Sq ft
Stores
Sq ft
UK
 
 
 
 
 
 
 
 
Standalone
457
4,047
457
4,045
460
4,117
462
4,124
Concessions
15
20
16
29
16
29
16
29
Total
472
4,067
473
4,074
476
4,146
478
4,153
Europe
 
 
 
 
 
 
 
 
Republic of Ireland
21
155
21
155
21
154
21
155
Netherlands
95
1,104
95
1,104
95
1,105
95
1,104
Belgium
26
307
26
307
26
307
26
307
Total
142
1,566
142
1,566
142
1,566
142
1,566
 
Total Group
 
 
614
 
5,633
 
615
 
5,640
 
618
 
5,712
 
620
 
5,719