CPR Carpetright Plc

RNS Number:2314D
Carpetright PLC
01 November 2002

                                Carpetright plc



             Acquisition of outstanding 50% of Carpetland NV shares



Carpetright plc ("Carpetright") reported at its Preliminary Results on 25 June
2002 that it had acquired 50% of Carpetland NV ("Carpetland"), the leading
carpet retailer in Belgium, Holland and Luxembourg, for Euro15 million as well as
certain freehold and long leasehold properties from which Carpetland operates
for approximately Euro35 million.



In order to accelerate the necessary development of the business Carpetright
announces today that it has bought the remaining 50% of Carpetland for an
additional Euro10 million in cash.  In this financial year, as part of this
process, there will be approximately Euro10 million in re-organisation costs
relating to staff redundancies, fixtures and fittings and discontinued products.



The freehold and long leasehold property purchases have been completed for an
actual cost of Euro26.4 million at an initial yield of 9 1/2 % after a professional
valuation undertaken by Healey & Baker.   All of these purchases, at a total
cost of Euro51.4 million, will be funded out of existing Group resources.



Carpetland (retail company and property company) made a profit before interest
and tax of Euro5.5 million for the year to 31st December 2001 and had net assets of
Euro46.1 million as at 31st December 2001.



Lord Harris, Chairman and Chief Executive, said:



"We are very pleased that we have had the opportunity to complete the full
acquisition of Carpetland enabling us to accelerate the required changes in the
business and to reduce central overhead costs. Before re-organisation costs we
expect the acquisition to be earnings enhancing and we are confident of a much
improved performance in the next financial year when 100% of the profit will
accrue to Carpetright shareholders.  Up to date we have converted 6 to full
Carpetright stores and we are working on 13 others and, although at an early
stage, the 6 stores are showing encouraging results."



"Carpetright UK is still trading above 6% on a like for like basis this
financial year.  The recent challenge by HM Customs and Excise in respect of the
VAT treatment of structural guarantees is not relevant to Carpetright which does
not offer this type of insurance product."



For further enquiries please contact:



Carpetright plc

Lord Harris of Peckham, Chairman and Chief Executive

Shena Winning, Finance Director

Tel:  01708 525522



Citigate Dewe Rogerson

Patrick Toyne Sewell

Tel:  020 7282 8000




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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