30 Sep 2010 10:00
United Carpets Group plc
('United Carpets' or 'the Group')
AGM Statement
The following statement was made at the Annual General Meeting of United Carpets held today at 10.00am.
'During the 25 weeks to 30 September 2010, trading has been challenging as consumer sentiment across our target market remained cautious in the lead up to and post the General Election. Overall like for like sales were 5.5% lower, which reflects the market environment but also the relatively strong trading in the comparable period last year.
Market demand over the last two years has been volatile, primarily reflecting the prevailing economic uncertainty. United Carpets continues to be well positioned, however, to defend its market share through providing exceptional value for money. With the majority of stores operating under the Group's franchise model, the business benefits from the entrepreneurial drive and motivation of the individual store owners which, we believe, is a critical advantage over more traditional retail networks.
During the period, the Group has continued to make progress in attracting new franchisees. Since March 2010, 3 new franchised stores have opened and 2 stores have closed (one corporate store due to lease expiry and one franchised store, temporarily, due to a fire). We have taken back 4 stores into the corporate arm and 5 have been re-franchised so that we currently operate from 73 franchised stores and 10 corporate stores. We have in place an excellent pipeline of potential franchisees many of whom have already made a significant financial commitment to join the Group.
Whilst management recognise the challenging market conditions they note the possible benefits from customers looking to take advantage of the last months before the VAT increase in January 2011. We will continue to offer outstanding value for money on wide ranges of flooring, far outstripping local independent competitors who cannot match the advertising spend or the depth of products available in a United Carpets store and the current market environment may well create opportunities for the Group to increase market share in key areas.
The Group's long term future remains sound supported by positive cash balances, an expanding store portfolio and a well established brand. We will report our interim results for the 6 months ended 30 September 2010 in December 2010.'
Enquiries:
United Carpets 01709 732 666
Paul Eyre, Chief Executive
Ian Bowness, Finance Director
Cardew Group 020 7930 0777
Tim Robertson
Jamie Milton
Seymour Pierce
Jonathan Wright/Nicola Marrin 020 7107 8000