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Interim Management Statement 2010-03 February
Carpetright plc, Europe’s leading specialist carpet and floor coverings retailer, today announces a trading update for the 13 weeks ended 30 January 2010, being the third quarter of its current financial year.
Highlights
- Group sales rose by 7.0% and the store base increased to 7172 at the period end.
- UK and Republic of Ireland sales rose by 7.7%, with like-for-like sales3 up 2.3%. A net four stores have been opened, increasing the total to 5942.
- In constant currency terms, in our continuing business in the Rest of Europe (The Netherlands and Belgium) total sales decreased by 5.1% with like-for-like sales down.
- After allowing for the movement in exchange rates, this translates to a total sales growth of 5.4%. We opened one store in the period, increasing the total to 117.
- Our announced withdrawal from Poland continues to plan with an envisaged exit from this market by the financial year end. Four stores closed over the period, leaving a portfolio of six.
Lord Harris of Peckham, Chairman and Chief Executive, said:
“We are pleased with our overall performance during the period and believe our continued growth demonstrates the resilience and strength of our business plan.
“In the UK, trading in the early part of the quarter was strong and we experienced double digit like for like growth. The severe weather conditions post-Christmas impacted the final weeks of the quarter but we are hopeful of recovering some of this lost trade in the coming weeks.
“Our new revenue streams from housebuilding and insurance customers are generating incremental business and we expect this to grow in future periods. We have opened a net four new stores in the last thirteen weeks and have recently launched two transactional web sites supporting the Carpetright and Sleepright brands. These sites are trading in line with management expectations.
“We believe we continue to grow market share in our businesses in The Netherlands and Belgium. Whilst we remain cautious about economic conditions in these markets, our businesses have recently demonstrated signs of a recovery in sales performance. This leads us to be optimistic about a return to growth in our Rest of Europe business in the balance of the year.
“Our previously announced withdrawal from our loss making operations in Poland continues and we envisage full exit by the close of this financial year.
“Whilst we remain cautious about our market in the balance of the financial year, we continue our drive for sustained growth and our expectations for the full year are unchanged.”
Analyst conference call
Lord Harris will host a conference call for analysts at 8:30am
The dial in number is 0800 032 3808 with the passcode 7949893
Thereafter, for further enquiries please contact:
Carpetright plc
Lord Harris of Peckham, Chairman and Chief Executive
Neil Page, Group Finance Director
Tel: 01708 802000
Citigate Dewe Rogerson
Kevin Smith / Angharad Couch / Lindsay Noton
Tel: 020 7683 9571
1. All sales figures are quoted after deducting VAT.
2. Excludes Sleepright within Carpetright locations.
3. Like-for-like sales represent sales from stores which have been trading for 52 weeks at the start of the financial year. It includes the sales of beds, where these have been introduced into the like-for-like store base since the acquisition of Sleepright in December 2008.
4. The Group will announce an update on trading for the 12 weeks to 24 April 2010 on Wednesday 28 April 2010.
5. There have been no significant changes to the Group’s financial position during the period.
6. Certain statements in this report are forward looking. Although the Group believes that the expectations reflected in these forward looking statements are reasonable, we 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.
Interim Results Announcement 2009-15 December
Carpetright plc Interim Results Announcement for the 26 weeks ended 31 October 2009
Strong First Half Recovery Drives Revenue, Earnings and Dividend Growth
Carpetright plc, Europe's leading specialist carpet and floor coverings retailer, today announces its interim results for the 26 week trading period from 3 May 2009 to 31 October 2009.
Highlights
Group
- Total Group revenue of £258.0m up 9.0% (2008: £236.8m)
- Underlying4 profit before tax of £13.9m up 58.0% (2008: £8.8m)
- Exceptional charges of £2.9m primarily relating to exit from Polish market
- Profit before tax of £11.0m up 15.8% (2008: £9.5m)
- Underlying4 earnings per share of 15.5p up 64.9% (2008: 9.4p)
- Basic earnings per share of 11.6p up 14.9% (2008: 10.1p)
- Interim dividend of 8.0p up 100.0% (2008: 4.0p), underlining the Board's confidence in future prospects
- Net debt reduced by £23.7m to £73.4m, during the first half
UK and Republic of Ireland
- Total sales increased by 9.6%, with LFL sales3 up 3.9%
- Underlying4 operating profit increased 67.9% to £14.1m (2008: £8.4m)
- Store base increased to 590 stores2
Rest of Europe
- Total sales increased by 5.9% with like for like sales down by 3.8% in constant currency
- Underlying4 operating profit increased by 6.5% to £3.3m (2008: £3.1m)
- Store base decreased to 126
- Withdrawal from loss making Polish operation included as a non-recurring cost of £2.5m
1 All sales figures are quoted after deducting VAT.
2 Excludes Sleepright within Carpetright locations.
3 Like-for-like sales represent sales from stores which have been trading for 52 weeks at the start of the financial year. It includes the sales of beds, where these have been introduced into the like-for-like store base since the acquisition of Sleepright in December 2008.
4 'Underlying' excludes profits on property disposals and non-recurring items and for EPS together with associated tax
Commenting on the results, Lord Harris of Peckham, Chairman and Chief Executive, said:
"We are pleased with this significantly improved first half performance, which clearly demonstrates the strength of the Group. The improved profit and reduction in net debt provide a firm base for the continued growth of our business. "In the UK, discussions with housebuilders and insurers have progressed well and we are starting to generate new business. These initiatives ensure we remain well placed to trade resiliently and drive further growth. "Our business in The Netherlands and Belgium continues to make progress and grow market share although, as previously stated, sales have declined as a consequence of a weaker economy. However, we have a good position to capitalise on any improvement in trading conditions. The planned withdrawal from our loss making operation in Poland will improve Group profitability. "While we remain cautious about the retail market in the balance of the financial year and through 2010, we have made a good start to the second half, with the added potential of more insurance and housebuilder business to come. Consequently, the Board has confidence that the Group is well positioned to make further progress
Analyst Presentation
There will be a presentation to analysts today at 9.00am at Deutsche Bank, Winchester House, 1 Great Winchester Street, London, EC2N 2DB. A copy of this interim statement can be found on our website www.carpetright.plc.uk from 7.00am today.
Enquiries:
Carpetright plc
Lord Harris of Peckham, Chairman and Chief Executive Neil Page, Group Finance Director Telephone 020 7638 9571 (until 2pm), 01708 802000 (thereafter)
Citigate Dewe Rogerson
Kevin Smith / Angharad Couch / Lindsay Noton
Telephone 020 7638 9571
Forthcoming News flow
Carpetright will be releasing its Interim Management Statement for the third quarter on 3 February 2010.
Certain statements in this report are forward looking. Although the Group believes that the expectations reflected in these forward looking statements are reasonable, we 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.
Pre Close Trading Update 2009-28 October
Carpetright plc Pre Close Trading Update for the 12 weeks to 24 October 2009
Carpetright plc, Europe’s leading specialist carpet and floor coverings retailer, today announces the following trading update for the 12 weeks ended 24 October 2009.
Highlights for the 12 weeks to 24 October 2009
- Group sales rose by 10.3%, with store base increased to 7182 at the period end.
- UK and Republic of Ireland sales rose by 12.2%, with like-for-like sales3 up 5.6%. A net 11 stores have been opened, increasing the total to 5922.
- In constant currency terms, Rest of Europe (The Netherlands, Belgium and Poland) total sales decreased by 9.9% with like-for-like sales down 8.2%. After allowing for the movement in exchange rates, this translates to a total sales growth of 1.6%. The store base remains at 126.
| 13 weeks to 1 August 2009 (previously reported) | 12 weeks to 24 October 2009 | 25 weeks to 24 October 2009 | |
|---|---|---|---|
| Group Sales | 7.5% | 10.3% | 8.9% |
| UK & RoI | |||
| - Total | 6.6% | 12.2% | 9.5% |
| - Like-for-like | 1.4% | 5.6% | 3.5% |
| Rest of Europe | |||
| - Total (in GBP) | 11.4% | 1.6% | 6.4% |
| - Total (in constant currency) | 0.9% | (9.9%) | (4.5%) |
| - Like-for-like (in constant currency) | (2.8%) | (8.2%) | (5.4%) |
Lord Harris of Peckham, Chairman and Chief Executive, said:
“We are pleased with our overall performance during the period.
“In the UK, we continue to take advantage of opportunities and have opened a net 11 new stores in the last twelve weeks. Our discussions with house builders and insurers have begun to secure us additional business and we expect to continue to make progress in this area during the second half. The underlying carpet margin has remained in line with last year, whilst the greater proportion of beds sales in the mix has resulted in the overall UK gross profit percentage dropping by around 60 basis points.
“As expected, sales in The Netherlands and Belgium decreased as a consequence of slowing economic conditions. However, we believe we continue to grow market share and are well positioned to capitalise on this when trading conditions improve.
“We expect to deliver a half year profit performance ahead of expectations and, whilst we remain cautious about the retail market in the balance of the financial year, we have made a solid start.”
Analyst conference call
Lord Harris will host a conference call for analysts at 8.15 a.m.
The dial in number is 0800 028 1243 with the passcode 4543012.
Thereafter, for further enquiries please contact:
Carpetright plc
Lord Harris of Peckham, Chairman and Chief Executive
Neil Page, Group Finance Director
Tel: 01708 802000
Citigate Dewe Rogerson
Angharad Couch / Lindsay Noton
Tel: 020 7638 9571
A copy of this trading statement will be available on our website www.carpetright.plc.uk today from 7.00 a.m.
Notes
1. All sales figures are quoted after deducting VAT.
2. Excludes Sleepright within Carpetright locations.
3. Like-for-like sales represent sales from stores which have been trading for 52 weeks at the start of the financial year. It includes the sales of beds, where these have been introduced into the like-forlike store base since the acquisition of Sleepright in December 2008.
4. The Group will announce its Interim Results for the 26 weeks to 31 October 2009 on Tuesday 15 December 2009.
5. There have been no significant changes to the Group’s financial position during the period.
6. Certain statements in this report are forward looking. Although the Group believes that the expectations reflected in these forward looking statements are reasonable, we 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.
AGM Statement 2009-10 September
Carpetright, Europe’s leading specialist carpet and floor coverings retailer, will hold its Annual General Meeting (“AGM”) at 12:00 today at Harris House, Purfleet Bypass, Purfleet, Essex, RM19 1TT.
Historically, Carpetright has not provided any additional information on trading performance at the AGM, since it falls only five weeks after the first quarter trading update given in early August. While this position remains unchanged, at the meeting today Lord Harris, Chairman & Chief Executive, will be making the following statement, re-iterating the Company’s belief in the continued improvement in trading conditions in the UK.
“The last financial year was extremely challenging for the Group. Market conditions and consumer confidence declined throughout the year, leading to a significant reduction in sales volume. Throughout this period we remained profitable and I am more confident about the future prospects for a number of reasons.
“We have seen our principal nationwide competitor, Allied Carpets, enter into administration and significantly reduce its number of stores. We are securing more insurance business each week and have secured contracts to supply a number of house builders. We have a central warehouse and cutting facility which has the capacity to significantly increase volumes at minimal additional costs. Finally, the mortgage approval data is providing an indicator that the market will be stronger in the spring of next year.
“All these factors make me cautiously optimistic ahead of our important autumn trading period, although it is too early to say to what extent this will impact on the full year financial results”
Carpetright’s next trading update will be made on Wednesday 28 October 2009 and will cover the trading performance for the first 25 weeks of the financial year to 24 October 2009.
Carpetright plc Lord Harris of Peckham, Chairman and Chief Executive Neil Page, Group Finance Director Tel: 01708 802000
Citigate Dewe Rogerson Kevin Smith / Lindsay Noton Tel: 020 7638 9571