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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.

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