UCG.L Regulatory News (UCG)

12 Apr 2005 11:17

United Carpets Group plc12 April 2005 12 April 2005 United Carpets Group plc ("United Carpets" or "the Group") Trading Update United Carpets, the third largest chain of specialist retail carpet and floorcovering stores in the UK, has reviewed current trading following the end of itsfinancial year. The new store opening programme is proceeding as planned. United Carpets nowtrades from a total of 54 stores, with 3 new stores having been opened inWarrington, Northfield and Southport since the Group was admitted to AIM on 17February 2005. A further new store in Huddersfield is expected to be open for business by 16April 2005. In addition, there is a strong pipeline of potential new stores andnew franchisees looking to join the Group, reflecting the positive start thebusiness has made in terms of achieving the 50 store opening target over thenext three years. As with many other retailers, however, trading conditions for United Carpetshave been difficult and March 2005 was a particularly disappointing month forthe Group. Nonetheless, the Board expects the Group's profit before tax andexceptional items to be approximately £2.7 million for the year ended 31 March2005. The Group's cash position is strong, with bank balances of approximately£2.8 million as at 31 March 2005. Following the integration of the various companies which were amalgamated informing the Group in February 2005, the Board has identified some historicissues, principally relating to late payments by franchisees. The Board iscurrently reviewing the accounting treatment of these items in the accounts forthe year ended 31 March 2005 and expect an exceptional operating expense toarise as a result. Further details will be provided in due course. Although the retail market environment continues to be difficult and highlycompetitive, the Board remains confident that the Group's retail format underthe franchise model will deliver solid shareholder returns. Enquiries: Cardew Group 020 7930 0777Tim Robertson 07900 927 650Alex Pettifer Seymour Pierce Limited 020 7107 8000Richard RatnerEwan Leggat United Carpets 01709 579450Paul Eyre, Chief ExecutiveIan Bowness, Finance Director This information is provided by RNS The company news service from the London Stock Exchange