UCG.L Regulatory News (UCG)

19 September 2018

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION (EU) 596/2014 (MAR). ON PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

UNITED CARPETS GROUP plc

AGM Statement

United Carpets Group plc ("the Group" or "the Company" or "United Carpets"), the third largest chain of specialist retail carpet and floor covering stores in the UK, announces the following update in advance of its AGM being held later this morning at noon.

As previously described in the Company's full year results announced in July, trading in early summer was difficult due to the exceptionally warm, sunny weather, and the World Cup, which together had a significant adverse impact on the Company's sales volumes, as they had on the sector as a whole.

As a result of these headwinds, the modest decline of 1.9% in like for like sales for the 24 weeks ended 13 September 2018 has been achieved at the cost of increased marketing investment. Further costs have been absorbed during the period in supporting the franchise network and making additional investment in future business developments. The combination of these influences will be reflected in significantly lower profit levels in the first half of the current financial year.

Whilst comparatives for the balance of the year remain challenging, the Board believes the business is well positioned for future trading and is actively pursuing appropriate ways to respond in the second half of this financial year in order to reduce the impact on the full year results.

In view of the strength of its store portfolio together with the abilities and commitment of the franchisee network, the Board remains confident that the Group will continue to be cash generative, with no borrowings, and able to support its current dividend policy.

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