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2015-06-30_Prelims Results Announcement

Embargoed until 7am, 30 June 2015
 
Carpetright plc
Full Year Results for the 53 weeks ended 2 May 2015
 
“Substantial growth in Group underlying profit to £14.2m, strong like-for-like sales growth in UK, a return to profit in the Rest of Europe and a net cash position at period end.”
 
Financial Highlights (on a pro forma 52 week basis)(Note 1)
Group
       Group revenue increased 3.3% to £462.6m (2014: £447.7m).
       Significant increase in underlying profit before tax to £13.0m (2014: £4.6m).
       Underlying earnings per share of 13.7p (2014: 4.7p).
 
UK
       Like-for-like sales increased by 7.3% (2014: down 0.2%).
       Underlying operating profit up 33.6% to £14.3m (2014: £10.7m).
       Store base reduced by a net twelve during the year to 460 stores.
 
Rest of Europe
       Like-for-like sales increased by 0.3% (2014: down 8.6%).
       Underlying operating profit of £0.3m, an improvement of £4.1m, reversing the losses experienced in the prior year.
       Store base reduced by a net five during the year to 137 stores.
 
Statutory Results (including 53rd week)
       53rd week contributed a further £7.2m to revenue and £1.2m to pre-tax profit, resulting in Group underlying profit before tax of £14.2m (2014: £4.6m).
       Exceptional charges of £7.6m, predominantly related to onerous lease provisions.
       Profit before tax of £6.6m, an improvement of £13.8m (2014: loss of £7.2m).
       Basic earnings per share of 6.7p (2014: 5.3p loss per share).
       Net cash of £0.5m (2014: net debt of £11.1m).
 
Trading Update for the eight weeks to 27 June 2015
       Encouraging start to the new financial year with like-for-like sales ahead by 4.9% in the UK and 7.4% in the Rest of Europe, on a local currency basis.
 
Commenting on the results Wilf Walsh, Chief Executive, said:
 
“I am pleased to able to report on a year of significant progress. The Group has delivered substantial growth in profit, strong and consistent like-for-like sales growth in the UK, a return to profit in the Rest of Europe and a net cash position at the end of the period.
 
“Today we’re giving a progress update on a range of strategic initiatives that will broaden the appeal of the Carpetright brand and reposition the business, to ensure it is better able to capitalise on its market leadership position. We have made a promising start with these plans, establishing a real momentum for change within the business.  
 
“I am also pleased to report that customer reaction to the first phase of activity has been positive, supporting encouraging trading in the opening period of new financial year, with UK like-for-like sales being ahead by 4.9% in the eight weeks to 27 June 2015.   
 
“While this is just the beginning of the journey to transform Carpetright, we have a clear direction and the positive results we are seeing from a number of our initial activities give us confidence that we are on the right path.”      
 
Group Financial Summary
 

 
53 week
2015
£m
Pro forma
52 week 2015
£m
52 week
2014
£m
52 week
change
Group revenue (Note 2)
469.8
462.6
447.7
3.3%
·         UK
403.2
396.0
375.8
5.4%
·         Rest of Europe
66.6
66.6
71.9
(7.4%)
 
 
 
 
 
Underlying operating profit/(loss) (Note 3)
15.8
14.6
6.9
111.6%
       UK
15.5
14.3
10.7
33.6%
       Rest of Europe
0.3
0.3
(3.8)
 
 
 
 
 
 
Underlying profit before tax (Note 3)
14.2
13.0
4.6
182.6%
Underlying earnings per share
15.5p
13.7p
4.7p
191.5%
 
 
 
 
 
Exceptional items (Note 5)
(7.6)
(7.6)
(11.8)
 
Statutory profit /(loss) before tax
6.6
5.4
(7.2)
 
Basic earnings/(loss) per share
6.7p
5.0p
(5.3p)
 
 
 
 
 
 
Net cash/(debt)
0.5
-
(11.1)
£11.6m
Dividend per share
Nil
-
Nil
 

 
 
Notes
1.        The 2015 financial year represents the trading period for 53 weeks to 2 May 2015. The comparative period of financial year 2014 represents the 52 weeks to 26 April 2014. We believe that the pro forma 52 weeks result for the 2015 financial year better reflects the underlying performance of the business when compared to the prior year. On this basis, all commentary included in this report is based on the 52 week period to 25 April 2015 unless otherwise stated.
2.        All sales figures are quoted after deducting VAT.
3.        ‘Underlying’ excludes exceptional items and related tax.
4.        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. 
5.        Exceptional items comprises, net losses on disposal of properties of £0.4m; onerous lease provisions of £7.0m and non-cash impairment of other assets of £0.2m.



Results presentation
Carpetright plc will hold a presentation to analysts and investors at Citigate Dewe Rogerson, 3 London Wall Buildings, London Wall, London EC2M 5SY at 09:00 today.
 
A conference call facility is available on +44 (0) 20 3003 2666 conference ID: ‘Carpetright’
 
A copy of this statement can be found on our website www.carpetright.plc.uk
 
 
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
 
 
Forthcoming news flow:
Carpetright will release its first half trading update on 27 October 2015.
 
 
 
Certain statements in this report are forward looking. Although the Group believes that the expectations reflected in these forward looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. Because these statements contain risks and uncertainties, actual results may differ materially from those expressed or implied by these forward looking statements. We undertake no obligation to update any forward looking statements whether as a result of new information, future events or otherwise.



 

2015-04-21_Interim management statement

Embargoed until 7am, 21 April 2015
 
 
21 April 2015
Carpetright plc
 
Trading Update
 
Carpetright plc, Europe’s leading specialist carpet and floor coverings retailer, today announces an update on trading for the 12 weeks ended 18 April 2015 and expectations for the full year.
 
Highlights
 
·         Group
o   Strong trading momentum maintained in final quarter – full year pre-tax profits to be ahead of current market expectations (note 4).
o   Sustained recovery in UK like-for-like sales and continued improvement in trading conditions in the Rest of Europe means that Group now expects underlying pre-tax profit for the year ending 2 May 2015 will be around £13m.
 
·         UK
o   Like-for-like sales (note 2) in the UK increased by 10.5%. Total sales increased by 9.0%.
o   Full year gross profit margin expected to be around 130 basis points below the prior year, around the midpoint of our previously guided range.
o   A net two stores closed during the period, leaving 459 trading locations.
 
·         Rest of Europe
o   In local currency terms, like-for-like sales in the Rest of Europe (Netherlands, Belgium and the Republic of Ireland) increased by 2.4%.  Total sales declined by 0.7%. After the impact of currency movements this translates to a 12.6% decrease in total sales.
o   Full year gross profit margin expected to be around 250 basis points ahead of the prior year.
o   Store numbers remained unchanged following one opening and one closure during the period, leaving 137 trading locations.
 
 
Wilf Walsh, Chief Executive, said:
 
"I am pleased to report that the Group’s encouraging trading momentum is being maintained during the final quarter of our financial year.
 
“In the UK our continued focus on effective promotional activity and the introduction of an interest free credit offer has supported solid like-for-like sales growth of 10.5%. Sales in the Rest of Europe have also continued to improve, building on the progress made in the third quarter.
 
“In light of this strong finish to the year, we now expect that underlying pre-tax profits for the full year will be above the current range of market expectations at around £13m.
 
“The Group is well positioned to continue to grow market share and profitability, as we implement our plans to extend the appeal of the Carpetright brand."
 
The Group will report its preliminary results for the financial year ending 2 May 2015 on Tuesday, 30 June 2015.
 
Analyst conference call
Carpetright will host a conference call for analysts at 08.00 BST today.
 
The dial in number is +44 (0) 20 3427 1919 with the passcode ‘9317331'.
 
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 current 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.
4.       Current range of market expectations for the year ending 2 May 2015 is for Group underlying profit before tax to be £10.0m to £11.0m.
 
 
 
 
 
 



 
Appendix 1: Group Sales
 

 
Current Financial Year
Previous Financial Year
 
12 weeks to
18 April
 2015
25 weeks to
18 April
 2015
 
51 weeks to
18 April
 2015
 
8 weeks to
22 March
 2014 (previously reported)
52 weeks to 28 April
2014 (previously reported)
UK
 
 
 
 
 
-          Total
9.0%
7.6%
6.3%
(0.8%)
(1.5%)
-          Like-for-like
10.5%
8.9%
7.7%
0.2%
(0.2%)
Rest of Europe
 
 
 
 
 
-          Total (in local currency)
(0.7%)
(0.8%)
(1.6%)
(5.3%)
(8.6%)
-          Like-for-like (in local currency)
2.4%
2.0%
0.1%
(5.3%)
(8.6%)
-          Total (in GBP)
 
(12.6%)
(10.0%)
(9.6%)
(8.5%)
(5.4%)
 
Group Sales (in GBP)
 
 
5.4%
 
4.9%
 
3.8%
 
(2.2%)
 
(2.2%)

 
 
 
 
Appendix 2: Store portfolio
 

 
Current Financial Year
Previous Financial Year
Store portfolio
18 April 2015
25 January 2015 (previously
reported)
22 March 2014
(previously
reported)
Year end
28 April 2014
(previously
reported)
 
Stores
Sq ft
Stores
Sq ft
Stores
Sq ft
Stores
Sq ft
UK
 
 
 
 
 
 
 
 
Standalone
447
3,952
450
3,974
457
4,047
457
4,039
Concessions
12
20
11
18
15
20
15
27
Total
459
3,972
461
3,992
472
4,067
472
4,066
Europe
 
 
 
 
 
 
 
 
Republic of Ireland
22
162
22
162
21
155
22
162
Netherlands
93
1,052
93
1,070
95
1,104
95
1,104
Belgium
22
257
22
257
26
307
25
298
Total
137
1,472
137
1,489
142
1,566
142
1,564
 
Total Group
 
 
596
 
 5,444
 
598
 
 5,481
 
614
 
5,633
 
614
 
5,630

 
 

2015-01-27_Interim management statement

Embargoed until 7am, 27 January 2015
 
 
27 January 2015
Carpetright plc
 
Trading Update
 
Carpetright plc, Europe’s leading specialist carpet and floor coverings retailer, today announces an update on trading for the 13 weeks ended 24 January 2015.
 
Highlights
 
·         UK
o   Like-for-like sales (note 2) in the UK increased by 7.5%. Total sales increased by 6.6%.
o   Full year guidance of a decline in gross profit percentage of between 100 and 150 basis points remains unchanged.
o   Two stores were closed during the period, leaving 461 trading locations.
 
·         Rest of Europe
o   In local currency terms, like-for-like sales in the Rest of Europe (Netherlands, Belgium and the Republic of Ireland) increased by 1.7%.  Total sales declined by 0.8%. After the impact of currency movements this translates to a 6.0% decrease in total sales.
o   Full year guidance of an increase in gross profit percentage of around 250 basis points remains unchanged.
o   Two stores closed during the period, leaving 137 trading locations.
 
        Full year 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 third quarter. 
 
“In the UK our continued focus on effective promotional activity and the introduction of an interest free credit offer from Boxing Day has delivered a like-for-like performance slightly ahead of the level experienced in the first half.  Sales in our Rest of Europe business have also continued to improve.
 
“Trading remains in line with management's expectations and our view for the year as a whole remains unchanged.”

The Group will issue a pre-close update on Tuesday, 28 April 2015 and will report its preliminary results for the financial year ending 2 May 2015 on Tuesday, 30 June 2015.
 
Analyst conference call
Carpetright 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
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 current 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.
4.       Current range of market expectations for the year ending 2 May 2015 is for Group underlying profit before tax to be £9.4m to £11.0m.
 
 
 
 
 
 



 
Appendix 1: Group Sales
 

 
Current Financial Year
Previous Financial Year
 
13 weeks to
24 January
 2015
39 weeks to
24 January
 2015
 
26 weeks to
25 October
 2014
(previously reported)
13 weeks to
25 January
2014
(previously reported)
39 weeks to 25 January
2014 (previously reported)
UK
 
 
 
 
 
-          Total
6.6%
5.5%
5.0%
0.6%
(1.2%)
-          Like-for-like
7.5%
6.8%
6.5%
1.9%
0.2%
Rest of Europe
 
 
 
 
 
-          Total (in local currency)
(0.8%)
(1.8%)
(3.7%)
(7.5%)
(8.6%)
-          Like-for-like (in local currency)
1.7%
(0.7%)
(3.3%)
(7.7%)
(8.5%)
-          Total (in GBP)
 
(6.0%)
(7.8%)
(9.4%)
(6.3%)
(3.8%)
 
Group Sales (in GBP)
 
 
4.7%
 
3.4%
 
2.6%
 
(0.5%)
 
(1.7%)

 
 
 
 
Appendix 2: Store portfolio
 

 
Current Financial Year
Previous Financial Year
Store portfolio
24 January 2015
25 October 2014 (previously
reported)
25 January 2014
(previously
reported)
Year end
28 April 2014
(previously
reported)
 
Stores
Sq ft
Stores
Sq ft
Stores
Sq ft
Stores
Sq ft
UK
 
 
 
 
 
 
 
 
Standalone
450
3,974
452
3,993
457
4045
457
4,039
Concessions
11
18
11
18
16
29
15
27
Total
461
3,992
463
4,011
473
4,074
472
4,066
Europe
 
 
 
 
 
 
 
 
Republic of Ireland
22
162
22
162
21
155
22
162
Netherlands
93
1,070
94
1,087
95
1,104
95
1,104
Belgium
22
257
23
273
26
307
25
298
Total
137
1,489
139
1,522
142
1,566
142
1,564
 
Total Group
 
 
598
 
 5,481
 
602
 
5,533
 
615
 
5,640
 
614
 
5,630

 
 
 
 
 
 

2014-12-15_Interims Results Announcement

Embargoed until 7am, 15 December 2014
 
 
Carpetright plc
Interim Results Announcement for the 26 weeks ended 25 October 2014
 
Carpetright plc, Europe’s leading specialist carpet and floor coverings retailer, today announces its interim results for the 26 week trading period ended 25 October 2014.
 
Group Financial Summary
 

 
H1 FY15
£m
H1 FY14
£m
Change
Group revenue (Note 1)
227.9
222.2
2.6%
·         UK
194.2
185.0
5.0%
·         Rest of Europe
33.7
37.2
(9.4%)
 
 
 
 
Underlying operating profit/(loss) (Note 2)
7.4
4.1
80.5%
·         UK
7.3
5.5
32.7%
·         Rest of Europe
0.1
(1.4)
107.1%
 
 
 
 
Underlying profit before tax (Note 2)
6.7
3.0
123.3%
Underlying earnings per share
7.6p
3.2p
137.5%
 
 
 
 
Exceptional items (Note 4)
-
(1.1)
 
Profit before tax
6.7
1.9
252.6%
Basic earnings per share
7.6p
2.8p
171.4%
 
 
 
 
Net cash/(debt) (Note 5)
3.2
(14.3)
£17.5m
Dividend per share
Nil
Nil
 

 
Highlights
 
Group
·         Solid first half with total sales growth of 2.6%
·         Underlying profit before tax of £6.7m, up by 123.3%
·         Profit before tax up from £1.9m to £6.7m, an increase of 252.6%
·         Improved trading performance, tight control on capital expenditure and robust working capital management moved the Group into a net cash position of £3.2m at period end
·         Strategic review in progress following appointment of new Chief Executive
·         Plans to revitalise the Carpetright brand, while retaining our well-established value heritage, being finalised, for implementation in 2015
·         Full year underlying profit before tax now expected to be towards the upper end of current market expectations (Note 6)
UK
·         Like-for-like revenues increased by 6.5%
·         Gross profit percentage reduced by 140 basis points to 61.7% (H1 FY14: 63.1%)
·         Stores estate reduced by a net nine during the period to 463, trading from 4.0m sq ft, being 2.2% lower year-on-year
·         290 stores now modernised, 63% of the estate
 
Rest of Europe
·         Like-for-like sales down by 3.3% in local currency terms
·         Gross profit percentage increased by 270 basis points to 60.5% (H1 FY14: 57.8%)
·         Improvement in underlying operating profit of £1.5m to £0.1m, reversing the losses experienced in the first half of the prior year
·         The number of stores reduced by a net three during the period to 139, trading from 1.6m sqft, being 2.8% lower year-on-year
 
 
Commenting on the results, Wilf Walsh, Chief Executive, said:
 
“I am pleased to report that the Group grew profits during the first half, with an encouraging increase in UK like-for-like sales, a return to underlying profit in the Rest of Europe and a net cash position at the end of the period. Having made a solid start to the year, we now expect full year underlying pre-tax profits to be towards the upper end of current market expectations.
 
“We believe that, with a well researched and well executed strategy, we can begin to reshape Carpetright to ensure the business fully capitalises on its market leading position.
 
“These changes will take time to take full effect but we are absolutely focused on maintaining the recent improvements in the performance of the Group, as well as devoting our energies to revitalising our brand and operations in line with contemporary customer expectations. As a team we are excited by the potential that exists and are concentrating hard on execution of this new strategy as we enter 2015.”
 
 
 
 
 
 
 
 
 
 
 
Notes
1.       All sales figures are quoted after deducting VAT.
2.       ‘Underlying’ excludes exceptional items and related tax.
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 current 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. 
4.       Exceptional items in H1 FY14 comprised of net losses on disposal of properties of £1.1m.
5.       Net cash/(debt) is calculated as the total of cash-in-hand, or at bank, offset by borrowings, finance leases and unamortised fees.
6.       Current range of market expectations for the year ending 2 May 2015 is for Group underlying profit before tax to be £8.0m to £11.0m.
7.       Comparative period for the year is the 26 week period ended 26 October 2013.