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.