UCG.L Share News (UCG)

(Sharecast News) - Carpet and floor coverings retailer United Carpets said on Monday that trading had been "robust" since reopening its stores on 22 May, with like for like sales growing 23.8% in the 19 weeks ended 1 October.
United Carpets stated it had recovered much of the ground lost during the eight-week shuttering of its locations as a result of Downing Street's enforced lockdown.

The AIM-listed group highlighted that it continued to be in a "strong financial position", with cash and equivalents of approximately £5.4m as of 30 September, and now believes it has "sufficient capital" to support it through current challenges and leave it "well placed" in case of further Covid-19 restrictions.

United Carpets also noted that a condition of its Coronavirus Business Interruption Loan was that no dividends be paid while the loan remains outstanding.

Chief executive Paul Eyre said: "Since our stores were allowed to re-open, we have been encouraged by a strong period of trading. Customers appear to have been making up for the purchases they would have made during lockdown, with an increased focus on home improvements.

"Looking ahead, however, there are a number of significant, potential headwinds facing our sector and the UK economy in general."

Eyre pointed to risks stemming from raw material shortages, availability of carpet fitting capacity in the run up to Christmas, further government restrictions, a "no-deal" Brexit and the longer-term impact from Covid-19 on unemployment and economic recovery.

As of 0915 GMT, United Carpets shares were down 7.69% at 3.0p.