Pre-close Trading Update
October 27 2010 - 2:00AM
UK Regulatory
TIDMCPR
RNS Number : 0539V
Carpetright PLC
27 October 2010
27 October 2010
Carpetright plc
Pre-close Trading Update
Carpetright plc, Europe's leading specialist carpet and floor coverings
retailer, today announces a trading update for the 12 weeks ended 23 October
2010.
Highlights
· Group sales declined by 5.2%, with the year on year effect of closing our
operations in Poland accounting for 0.5% of this decline.
· The Group's store base decreased by two to 7022 stores at the period end.
· UK and Republic of Ireland sales declined by 4.6%, with like-for-like
sales3 down 7.3%. A net four stores have closed, decreasing the total to 5842.
· In local currency terms, total sales in Rest of Europe (The Netherlands and
Belgium) decreased by 0.2% with like-for-like sales down 1.2%. After allowing
for the movement in exchange rates, this translates to a total sales decline of
5.5%. Two stores opened in The Netherlands, increasing the total in Europe to
118 stores.
+------------------------+--------------+--------------+--------------+
| | 12 weeks to | 13 weeks to | 25 weeks to |
| | 23 October | 31 July 2010 | 23 October |
| | 2010 | (Previously | 2010 |
| | | reported) | |
+------------------------+--------------+--------------+--------------+
| Group Sales | (5.2%) | (2.5%) | (3.7%) |
+------------------------+--------------+--------------+--------------+
| | | | |
+------------------------+--------------+--------------+--------------+
| UK & RoI | | | |
+------------------------+--------------+--------------+--------------+
| - Total | (4.6%) | (0.9%) | (2.7%) |
+------------------------+--------------+--------------+--------------+
| - Like-for-like | (7.3%) | (3.4%) | (5.8%) |
+------------------------+--------------+--------------+--------------+
| | | | |
+------------------------+--------------+--------------+--------------+
| Rest of Europe (continuing businesses) | |
+------------------------------------------------------+--------------+
| - Total (in GBP) | (5.5%) | (6.2%) | (5.8%) |
+------------------------+--------------+--------------+--------------+
| - Total (in local | (0.2%) | (3.3%) | (1.7%) |
| currency) | | | |
+------------------------+--------------+--------------+--------------+
| - Like-for-like (in | (1.2%) | (4.2%) | (2.4%) |
| local currency) | | | |
+------------------------+--------------+--------------+--------------+
Lord Harris of Peckham, Chairman and Chief Executive, said:
"The tough trading environment in the UK and Republic of Ireland continued into
the second quarter of our financial year. The further reduction in mortgage
approvals along with fragile consumer confidence has produced a difficult
market. We expect these market conditions to continue into 2011.
"In these challenging market conditions, we have progressed the roll out of our
bed offer, opening 44 bedding departments within our existing UK estate since
the start of the financial year with plans for a further 50 by the end of April
2011. We expect the full year UK margin to increase by around 30-50 basis
points through a combination of price and promotional management. The focus on
effective cost management has continued.
"The Group remains well placed to capitalise on opportunities when economic
conditions improve."
The Group will report its interim results for the first half of its financial
year on 14 December 2010.
Change to reporting
The Group wishes to provide advanced notice of a planned change to the reporting
of its financial results. In light of the withdrawal from operations in Poland,
which completed during the last financial year, the Group has decided to report
on its continuing operations based on two principal geographic regions. These
being "The UK and Republic of Ireland" and "The Rest of Europe" (comprising The
Netherlands and Belgium). The move will better reflect internal operational
structures and meets the objectives of IFRS8 - segmental reporting.
Previously, reporting was in three segments, "UK & Republic of Ireland", "The
Netherlands" and "All other segments". The implications of the change will be
communicated in detail with figures being provided on both bases at the interims
results announcement on 14 December 2010.
Analyst conference call
Lord Harris will host a conference call for analysts at 8:30am
The dial in number is 0845 634 0041 with the passcode 3699068
Thereafter, for further enquiries please contact:
Carpetright plc
Lord Harris of Peckham, Chairman and Chief Executive
Neil Page, Group Finance Director
Tel: 01708 802000
Citigate Dewe Rogerson
Kevin Smith / Lindsay Noton
Tel: 020 7638 9571
A copy of this trading statement will be available on our website
www.carpetright.plc.uk today from 7.00am
Notes
1. All sales figures are quoted after deducting VAT.
2. Excludes Sleepright within Carpetright locations.
3. Like-for-like sales calculated as this year's net sales divided by last
year's net sales for all stores that are at least 12 months old at the beginning
of our financial year. Stores closed during the year are excluded from both
years. No account is taken of changes to store size or introduction of third
party concessions. Sales from insurance and house building contracts are
supplied through the stores and included in their figures.
4. There have been no significant changes to the Group's financial position
during the period.
5. Certain statements in this report are forward looking. Although the Group
believes that the expectations reflected in these forward looking statements are
reasonable, we can give no assurance that these expectations will prove to have
been correct. Because these statements contain risks and uncertainties, actual
results may differ materially from those expressed or implied by these forward
looking statements. We undertake no obligation to update any forward looking
statements whether as a result of new information, future events or otherwise.
Appendix 1: Store portfolio
+------------------------------------+-------+---------+-------+--------+
| Store portfolio | 23 October | 31 July 2010 |
| | 2010 | (Previously |
| | | reported) |
+------------------------------------+-----------------+----------------+
| | Sites | Sq Ft | Sites | Sq Ft |
+------------------------------------+-------+---------+-------+--------+
| UK & RoI | | | | |
+------------------------------------+-------+---------+-------+--------+
| Standalone | 537 | 4,699 | 536 | 4,672 |
+------------------------------------+-------+---------+-------+--------+
| Concessions | 47 | 118 | 52 | 129 |
+------------------------------------+-------+---------+-------+--------+
| Total | 584 | 4,817 | 588 | 4,801 |
+------------------------------------+-------+---------+-------+--------+
| Rest of Europe | | | | |
+------------------------------------+-------+---------+-------+--------+
| The Netherlands | 90 | 1,045 | 88 | 1,046 |
+------------------------------------+-------+---------+-------+--------+
| Belgium | 28 | 335 | 28 | 335 |
+------------------------------------+-------+---------+-------+--------+
| Total | 118 | 1,380 | 116 | 1,381 |
+------------------------------------+-------+---------+-------+--------+
| Total Group | 702 | 6,197 | 704 | 6,182 |
+------------------------------------+-------+---------+-------+--------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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