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2014-10-21_Board Changes

Carpetright plc
(“Carpetright” or “the Company”)
 
Board Changes
 
Carpetright, Europe's leading specialist carpet and floor coverings retailer, is pleased to announce the appointment of Bob Ivell as non-executive Chairman with effect from 1 November 2014.  In addition, Lord Harris has confirmed that he will retire from the Board with effect from 31 October 2014.
 
Bob Ivell is currently non-executive chairman of Mitchells & Butlers plc and senior independent director of Britvic plc and AGA Rangemaster Group plc.  He was previously chairman of David Lloyd Leisure Limited, Park Resorts Group Limited, Next Generation Clubs Pacific and a non-executive director of The Restaurant Group plc.  He has over 30 years experience in the food and beverage industry, holding executive roles with Regent Inns plc, Scottish & Newcastle plc and Whitbread plc, each of which involved the management of large consumer-facing estates.
 
Lord Harris said: “I am delighted we have found a very able and experienced Chairman who brings tremendous skills and experience from his previous executive and non-executive roles. After 57 years in the carpet business, it is time for me to focus on my other interests and I retire from the Board confident that I leave behind a strong leadership team.”
 
Bob Ivell said: “I am looking forward to working with the Board as we seek to drive a sustained recovery in profitability and to build on the strong legacy being left by Lord Harris.”
 
Wilf Walsh, Chief Executive said: “On behalf of everyone at Carpetright I would like to thank Lord Harris for the huge contribution he has made since founding the business in 1988 and in developing it into the UK market leader. We wish him the very best in his retirement.”
 
The Company will now issue its interim results for the 26 weeks ended 25 October 2014 on 15 December 2014 and not 9 December 2014 as previously announced.
 
The Company confirms that there is no further information about Bob Ivell requiring disclosure under paragraph 9.6.13 (2) to (6) of the Listing Rules of the UK Listing Authority
 
- Ends -
 
For further enquiries please contact:
 

Carpetright plc
01708 802000
Wilf Walsh, Chief Executive
 
Neil Page, Group Finance Director
 
 
 
Citigate Dewe Rogerson
020 7638 9571
Kevin Smith/Nick Hayns
 

 
 

2014-10-14_Trading update

Embargoed until 7am, 14 October 2014
 
 
14 October 2014
Carpetright plc
 
Trading Update
 
Carpetright plc, Europe’s leading specialist carpet and floor coverings retailer, today announces an update on trading for the 11 weeks ended 11 October 2014.
 
Highlights
 
·         UK
o   Like-for-like sales (note 2) in the UK increased by 7.0%. Total sales increased by 5.7%.
o   Full year guidance of a decline in gross profit percentage of between 50 and 100 basis points remains unchanged.
o   During the period, six stores were opened and ten closed giving a net reduction of four. There are now 463 stores trading, of which 290 have now been modernised.
 
·         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 0.5% on year.  Total sales declined by 0.8%. After the impact of currency movements this translates to a 7.9% decrease in total sales.
o   Full year guidance of an increase in gross profit percentage of around 250 basis points remains unchanged.

·         Full year profit expectations are unchanged.
 
Wilf Walsh, Chief Executive, said:
 
“I am pleased to report that the Group’s trading performance improved year-on-year during the second quarter. In the UK our continued focus on effective promotional activity has delivered solid sales growth throughout the period, with like-for-like growth broadly in line with the level experienced in the first quarter.  
 
“Trading across our Rest of Europe business has continued to improve with a further reduction in the rate of sales decline, arresting the very significant fall seen over the last 30 months, particularly in our Netherlands business. We expect this, along with an improvement in gross profit margin and a reduction in operating costs, will result in our businesses in the Netherlands and Belgium to be profitable for the first half of the financial year compared to the trading loss experienced in the prior year.
 
“Trading in the year to date remains in line with management's expectations and our view for the year as a whole remains unchanged.”



 
The Group will report its interim results for the first half of its financial year on 9 December 2014.
 
Analyst conference call
Carpetright will host a conference call for analysts at 08:30 BST today.
 
The dial in number is +44 (0)20 3003 2666 with the passcode ‘Carpetright’.
 
Thereafter, for further enquiries please contact:
 
Carpetright plc
Wilf Walsh, Chief Executive
Neil Page, Group Finance Director
Tel: 01708 802000
 
Citigate Dewe Rogerson
Kevin Smith / Nick Hayns
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
 
11 weeks to
11 Oct
 2014
13 weeks to
26 July
 2014
(previously reported)
24 weeks to
11 Oct
 2013
 
10 weeks to
29 Sept
2013
(previously reported)
26 weeks to 26 Oct
2013 (previously reported)
UK
 
 
 
 
 
-          Total
5.7%
5.2%
5.5%
(4.1%)
(2.2%)
-          Like-for-like
7.0%
6.1%
6.6%
(2.5%)
(0.8%)
Rest of Europe
 
 
 
 
 
-          Total (in local currency)
(0.8%)
(3.9%)
(2.5%)
(7.8%)
(8.4%)
-          Like-for-like (in local currency)
(0.5%)
(3.6%)
(2.8%)
(7.6%)
(8.6%)
-          Total (in GBP)
 
(7.9%)
(10.1%)
(9.2%)
(1.9%)
(2.4%)
 
Group Sales (in GBP)
 
 
3.6%
 
2.5%
 
3.0%
 
(3.7%)
 
(2.2%)

 
 
 
 
Appendix 2: Store portfolio
 

 
Current Financial Year
Previous Financial Year
Store portfolio
11 Oct 2014
26 July 2014 (previously
reported)
Interim
26 Oct 2013
(previously
reported)
Year end
28 April 2014
(previously
reported)
 
Stores
Sq ft
Stores
Sq ft
Stores
Sq ft
Stores
Sq ft
UK
 
 
 
 
 
 
 
 
Standalone
452
3,992
456
4,028
458
4,071
457
4,039
Concessions
11
19
11
19
16
29
15
27
Total
463
4,011
467
4,047
474
4,100
472
4,066
Europe
 
 
 
 
 
 
 
 
Republic of Ireland
22
162
22
162
21
155
22
162
Netherlands
94
1,091
94
1,091
95
1,104
95
1,104
Belgium
25
298
25
298
26
307
25
298
Total
141
1,551
141
1,551
142
1,566
142
1,564
 
Total Group
 
 
604
 
 5,562
 
608
 
5,598
 
616
 
5,666
 
 
614
 
5,630

2014-07-29_Interim management statement

Embargoed until 7am, 29 July 2014
 
 
29 July 2014
Carpetright plc
 
Interim Management Statement
 
Carpetright plc, Europe’s leading specialist carpet and floor coverings retailer, today announces an update on trading for the 13 weeks ended 26 July 2014.
 
Highlights
·         UK
o   Like-for-like sales (note 2) in the UK increased by 6.1%. Total sales increased by 5.2%.
o   Reduction in gross profit percentage of 260 basis points in the period, with revised guidance of a decline for the full year of between 50 and 100 basis points.
o   During the period, four stores were opened and nine closed giving a net reduction of five. There are now 467 stores trading, of which 283 have now been modernised.
 
·         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 3.6%.  Total sales declined by 3.9%. After the impact of currency movements this translates to a 10.1% decrease in total sales.
o   Increase in gross profit percentage in line with previous guidance of around 250 basis points for the full year.
 
·         Wilf Walsh joined the Board as Chief Executive with effect from 21 July 2014, at which point Lord Harris became non-executive Chairman.
 
 
The UK business saw small but steady improvements in sales growth during May and June, with this trend accelerating significantly during July, assisted by weak comparatives in 2013 when sales were impacted by a prolonged period of hot weather. Over the period, gross profit margins have decreased by 260 basis points, a consequence of implementing market beating promotions. 
 
Sales across our Rest of Europe business units have shown signs of improvement on the recent trend, with a reduction in the rate of decline. Gross profit margin was in line with previous guidance of an increase of around 250 basis points for the full year, resulting principally from improved sourcing and operational disciplines. On the back of this activity, it is encouraging to report that our businesses in the Netherlands and Belgium have returned to profit in the first quarter of the financial year.
 
Notwithstanding the continued tough trading conditions, our expectations for the current year are unchanged.



 
The Group will report its pre-close trading update for the first half of its financial year on 14 October 2014.
 
 
Analyst conference call
Carpetright will host a conference call for analysts at 08:30 BST today.
 
The dial in number is +44 (0) 20 3003 2666 with the passcode ‘Carpetright’.
 
Thereafter, for further enquiries please contact:
 
Carpetright plc
Neil Page, Group Finance Director
Tel: 01708 802000
 
Citigate Dewe Rogerson
Kevin Smith / Jos Bieneman
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
 
13 weeks to
26 July
 2014
12 weeks to 20 July
2013
(previously reported)
52 weeks to
28 April
2014
(previously reported)
UK
 
 
 
-   Total
5.2%
(3.3%)
(1.5%)
-   Like-for-like
6.1%
(1.9%)
(0.2%)
 
Rest of Europe
 
 
 
-   Total (in local ccy)
(3.9%)
(10.9%)
(8.6%)
-   Like-for-like (in local ccy)
(3.6%)
(10.6%)
(8.6%)
-   Total (in GBP)
 
(10.1%)
(4.4%)
(5.4%)
 
Group Sales (in GBP)
 
 
2.5%
 
(3.5%)
 
(2.2%)

 
 
Appendix 2: Store portfolio
 

 
Current Financial Year
Previous Financial Year
Store portfolio
26 July 2014
20 July 2013
(previously reported)
28 April 2014
(previously reported)
 
Stores
Sq ft
Stores
Sq ft
Stores
Sq ft
UK
 
 
 
 
 
 
Standalone
456
4,028
457
4,064
457
4,039
Concessions
11
19
16
29
15
27
Total
467
4,047
473
4,093
472
4,066
Europe
 
 
 
 
 
 
Republic of Ireland
22
162
21
155
22
162
Netherlands
94
1,091
95
1,104
95
1,104
Belgium
25
298
26
307
25
298
Total
141
1,551
142
1,566
142
1,564
 
Total Group
 
 
608
 
5,598
 
615
 
5,659
 
614
 
5,630

 

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.