CPR.L Regulatory News (CPR)

28 Apr 2009 07:00



Carpetright plc

Year End Pre-Close Period Announcement

Carpetright plc, Europe's leading specialist carpet and floor coverings retailer, today announces an update on trading for the second half of the financial year, ahead of entering its close period on 2 May 2009. This covers the 25 week trading period from 2 November 2008 to 25 April 2009.

Group sales have decreased by 6.7% and the store base has increased by 4, to 693 stores by the period end.

The UK and Republic of Ireland business recorded a sales decrease of 11.7%, with like-for-like store sales down by 15.1%. Trading for the last 12 weeks has remained challenging, with like-for-like sales in line with the third quarter performance, being down 15.3%. As previously reported, the gross margin was level with the prior year at the half year. Since then, margins have been affected by the appreciation of the Euro compared to Sterling which has impacted cost prices, along with some increased promotional activity. As a consequence, we expect the second half gross margin to be approximately 100 basis points below last year. Within the UK and Republic of Ireland 15 stores opened during the second half and 12 were closed, taking the total number of stores to 564, including 60 concessions.

After recently acquiring 100% of the Sleepright business we have invested considerable effort in store layouts, ranging, home delivery and staffing. We are largely through this process and remain confident that it will prove to be a very good acquisition for the Group.

Our business in the Rest of Europe (The Netherlands, Belgium and Poland), continues to make progress, with sales in local currency increasing by 6.7%, and like-for-like sales in local currency increasing by 0.7%. Like-for-like sales in the last 12 weeks were down 1.4%. The Group opened three stores in Europe and closed three in the second half, bringing the total in Rest of Europe to 128 stores. 

Net debt at the year end is expected to be around £95m. As previously announced, the Group has been negotiating the renewal of its principal banking facilities. A new agreement has recently been signed with our principal existing bankers, The Royal Bank of Scotland. This new facility provides the Group with committed funds through to the end of July 2012. We have £25m of existing facilities with other banks, making total available bank facilities £135m. 

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

"As expected, the UK trading environment has remained very difficult. The recent trend in mortgage approvals is improving and we would expect to begin to see this benefit in our sales later in the year.

Our business in Europe continues to grow and increase market share."

The Group will report its results for the 52 weeks ending 2 May 2009 on 30 June 2009. 

Analyst conference call

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

The dial in number is 0808 109 0700 from the UK or +44 203 003 2666 international, with the password Carpetright.

Thereafter, for further enquiries please contact:

28 April 2009

Carpetright plc

Year End Pre-Close Period Announcement

* excludes joint venture in Germany