UCG.L Regulatory News (UCG)

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.

30 March 2020

UNITED CARPETS GROUP plc

("the Group" or "the Company" or "United Carpets"),

COVID-19 Trading Update

United Carpets Group plc (AIM: UCG) the third largest chain of specialist retail carpet and floor covering stores in the UK, announces the following update in connection to the COVID-19 pandemic.

Like so many companies, our primary concern has been the well-being, safety and health of our employees, customers, suppliers and all who enter our stores. Since the outbreak of COVID-19, the Group has been closely following the UK Government's guidance and applying this to working practices across its retail store network, distribution centre's and offices to help prevent the spread of the virus.

In tandem with the announcement by the UK Government, all 58 United Carpet stores were closed. Key staff who can perform their roles remotely are working from home, with all non-essential travel curtailed, and the Group is no longer fulfilling product orders until guidance on non-essential travel is lifted.

While trading across the store network held up comparatively well during early March, the store closures will necessarily have a significant and immediate impact on revenues. As it is still uncertain how long the stores will need to remain closed and thereafter how quickly it will be for normal retail spending patterns to resume, it is not presently possible to provide guidance on the outcome for the current financial year ending 31 March 2020 or for the next financial year.

The Group is currently working through the Government's range of COVID-19 related, financial assistance packages and will utilise those elements which are beneficial to the business. While this extraordinary period continues the Board will manage the business on a prudent and conservative basis.

The Board will monitor the situation closely and further announcements will be made as appropriate.

Enquiries:

The person responsible for arranging the release of this information is Ian Bowness, Finance Director of the Group.