CPR.L Regulatory News (CPR)

3 Feb 2009 07:00



Carpetright plc

Interim Management Statement

Carpetright plc, Europe's leading specialist carpet and floor coverings retailer, today publishes its Interim Management Statement for the 13 weeks to 31 January 2009.

Group sales decreased by 9.0%, with the store base at 696 at the period end.

The UK and Republic of Ireland recorded a total sales decrease of 13.2%, which included a 2.2% contribution from the Sleepright business (acquired on 5 December 2008). Like-for-like sales (excluding Sleepright) for the 13 weeks were down 15.9%. Total sales in the five weeks to 31 January were up 7.9% including Sleepright. Like-for-like sales (excluding Sleepright) were down 2.9%. Footnote 1.

Within the UK and Republic of Ireland, five stores opened during the period and one was closed, increasing the number of outlets to 565, including 60 concessions and 38 Storey stores. Sleepright is trading from 102 outlets, of which all except two are located within existing stores.

Our business in the Rest of Europe (The Netherlands, Belgium and Poland) continues to make progress. Sales in local currency increased by 10.1%, with like-for-like sales down 0.6%. There has been one new store opened in Poland, bringing the total store base to 129 in the Rest of Europe.

There have been no significant changes to the financial position of the Group since the publication of the Interim Results on 16 December 2008.

Lord Harris of Peckham, Chairman and Chief Executive, said:

"As I have said before, the UK trading environment is more difficult than at any time in my working life, with a constant news flow of financial turmoil and redundancies. Until we are able to see some confidence in the economy return, trading will continue to be challenging. Sales in January are an improvement on the trends seen in November and December. Our gross margin remains level with last year, in line with our expectations. 

I am pleased with the first few weeks of Sleepright trading. We have now converted all the retail systems to the Carpetright standard and are focusing on enhancing the offer through improved service and pricing. We will open a further 12 Sleepright concessions in the final quarter of the financial year. I remain confident this will prove to be an excellent acquisition for the Group.

Trading in Rest of Europe has not been immune from the current instability in world financial markets, and the rate of growth has slowed. However we continue to grow the business and increase our market share.

Whilst these are difficult times we continue to trade cash positively. The Group remains strongly positioned to extend its market leading position when trading conditions improve."

The Group will report its pre-close trading update on 28 April 2009.

Footnote 1 : January 2009 = 5 weeks from 30 December 2008 to 31 January 2009 ; January 2008 = 5 weeks from 23 December 2007 to 26 January 2008.

Analyst conference call

Lord Harris and Neil Page will host a conference call for analysts at 08.15am this morning. 

The dial in number is +44 (0) 203 003 2666, with a password "Carpetright". 

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