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.