TIDMCPR
RNS Number : 8790X
Carpetright PLC
14 December 2010
Carpetright plc
Interim Results for the 26 weeks ended 30 October 2010
Carpetright plc, Europe's leading specialist carpet and floor
coverings retailer, today announces its interim results for the 26
week trading period to 30 October 2010.
Headlines
Group
-- Total Group revenue1 of GBP248.0m (2009: GBP258.0m)
-- Underlying2 profit before tax of GBP10.0m (2009:
GBP13.9m)
-- Profit before tax of GBP9.8m (2009: GBP11.0m)
-- Underlying2 earnings per share of 10.7p (2009: 15.5p)
-- Basic earnings per share of 10.4p (2009: 11.6p)
-- Interim dividend of 8.0p (2009: 8.0p)
-- Net debt reduced by GBP12.8m to GBP58.5m during the first
half
UK and Republic of Ireland
-- Total revenue1 declined by 2.7% to GBP207.6m, with
like-for-like sales3 down 6.1%
-- Underlying2 operating profit decreased 31.9% to GBP9.6m
(2009: GBP14.1m)
-- Store base reduced by two to 584 stores
Rest of Europe
-- Total reported revenue1 declined by 6.9% to GBP40.4m,
Like-for-like3 sales were down by 2.9% in local currency
-- Underlying2 operating profit decreased by 26.8% to GBP3.0m
(2009: GBP4.1m)
-- Store base increased by one to 118 stores
Commenting on the results, Lord Harris of Peckham, Chairman and
Chief Executive, said:
"The economic and consumer environment remained challenging in
the first half. Against this backdrop, the Group continued to trade
profitably and generate net cash.
"Whilst we remain cautious about the retail market in the
balance of the financial year and throughout 2011, the Board has
confidence that the Group is well positioned to deliver future
sales growth when consumer demand in our sector improves."
Notes
1. All sales figures are quoted after deducting VAT.
2. 'Underlying' excludes exceptional items and related tax.
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.
Results Presentation
Carpetright will hold a presentation to analysts and investors
at Deutsche Bank, Winchester House, 1 Great Winchester Street,
London, EC2N 2DB at 09.00 am today.
A listen only conference call facility is available on 01452
560297, conference ID: 31437535
A copy of this interim statement can be found on our website
www.carpetright.plc.uk today from 7.00am.
Enquiries:
Carpetright plc
Lord Harris of Peckham, Chairman and Chief Executive
Neil Page, Group Finance Director
Telephone 020 7638 9571 (until 2pm), 01708 802000
(thereafter)
Citigate Dewe Rogerson
Kevin Smith / Lindsay Noton / Clare Simonds
Telephone 020 7638 9571
Forthcoming News flow :
Carpetright will release its Interim Management Statement for
the third quarter on 2 February 2011.
Certain statements in this report are forward looking. Although
the Group believes that the expectations reflected in these forward
looking statements are reasonable, it 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.
Chief Executive's Review
The economic and consumer environment remained challenging in
the first half. Against this backdrop, the Group continued to trade
profitably, generate net cash and is in a strong position to
deliver future sales growth when consumer demand in our sector
returns.
Total sales decreased by 3.9% to GBP248.0m. During the first
half, the Group opened 19 stores and closed 20 which gave a net
decrease of one store and a total store base of 702. Total space
grew by 0.2% to just over 6.2m square feet.
Underlying operating profit decreased by 27.6% to GBP12.6m,
reflective of the decline in sales. Net finance charges decreased
to GBP2.6m. These factors combined to produce a 28.1% decrease in
underlying profit before tax to GBP10.0m, with a consequent decline
in underlying earnings per share to 10.7p.
Exceptional items accounted for a net loss of GBP0.2m (2009:
loss of GBP2.9m). This is principally a combination of net property
profits offset by non-cash store impairment and onerous lease
charges. As a result, profit before tax decreased by 10.9% to
GBP9.8m. Basic earnings per share decreased by 10.3% to 10.4p,
reflecting the decrease in post-tax earnings.
In determining the interim dividend, the Board considered the
level of profit this half year compared with the same period last
year, as well as the importance of stability in the dividend flow
to our investors. The Board has decided to maintain the interim
dividend at the same level as last year. If the Board's current
expectations for the full year result are achieved, the full year
dividend is likely to be at a similar level to last year. When
profitability increases, the Board expects to rebalance the
dividend to a lower interim relative to the final dividend to
reflect more accurately the balance of profits earned through the
year.
The combination of cash flow from continued profitability,
reduced capital expenditure and effective management of working
capital, enabled net debt to be reduced by GBP12.8m since the year
end to GBP58.5m.
Summary of Group Results
A summary of the reported financial results for the 26 weeks
ended 30 October 2010 is set out below:
2010 2009
GBPm GBPm Change
------------------------------- ------- ------- --------
Revenue 248.0 258.0 (3.9%)
=============================== ======= ======= ========
Underlying* operating profit 12.6 17.4 (27.6%)
=============================== ======= ======= ========
Net finance charges (2.6) (3.5)
=============================== ======= ======= ========
Underlying* profit before tax 10.0 13.9 (28.1%)
=============================== ======= ======= ========
Exceptional items (0.2) (2.9)
=============================== ======= ======= ========
Profit before tax 9.8 11.0 (10.9%)
=============================== ======= ======= ========
Earnings per share (pence)
=============================== ======= ======= ========
- underlying* 10.7 15.5 (31.0%)
=============================== ======= ======= ========
- basic 10.4 11.6 (10.3%)
=============================== ======= ======= ========
Interim Dividend (pence) 8.0 8.0
=============================== ======= ======= ========
Net debt (58.5) (73.4)
------------------------------- ------- ------- --------
* Where this review makes reference to "Underlying" these relate
to profits / earnings before exceptional items.
Business Review
The year to date has been influenced by an extended period of
both economic uncertainty and weak consumer demand. The Group
remains committed to delivering long term sustainable growth in
earnings per share and cash flow through the following five
strategies:
1. Primarily focusing on floor coverings
2. Developing a competitive bed proposition
3. Managing our store portfolio
4. Expanding selectively in Continental Europe
5. Reaching more customers through additional sales channels
1. Primarily focusing on floor coverings
We believe the foundations of Carpetright's success rest on the
provision of market leading product choice, which offers great
value, backed by excellent customer service. This view is supported
by externally conducted market research which indicates both strong
brand recognition and a reputation for being the 'first choice' for
fitted carpet. This research also provided insight into certain
areas which, through further development, can strengthen our
proposition, specifically around the in-store environment and the
communication of our services. This initiative is being developed
through an internal programme, under the leadership of the Group
Commercial Director, Martin Harris.
During the first half of the year we have changed the method of
rug distribution to our stores. Previously, rugs were delivered
direct from the manufacturer to each store. They are now centrally
replenished from our Purfleet distribution centre which has enabled
us to improve in-store availability, reduce stock holding by around
GBP1m and improve margin. The full benefit of this will be realised
in the second half of the year.
2. Developing a competitive bed proposition
The development of the bed business continued throughout the
period. The focus has been on opening bed departments in existing
stores, introducing new products and integrating the sales teams.
At the end of October we were trading from 176 locations with plans
for further openings in the second half. All of these factors have
resulted in total bed sales being up 30.3% in the period, with the
second quarter showing accelerating growth.
3. Managing our store portfolio
At the end of October we had 584 stores trading in the UK and
RoI. During the last six months we have opened 17 new stores and
closed 19 stores. Where available we have taken advantage of
opportunities to reduce the size of individual stores, resulting in
a corresponding lower rent payable. We have 92 stores where the
lease expires within the next five years which will provide
opportunities to achieve lower net rental costs.
Although we have broad national coverage in the UK we know there
are still opportunities to open profitable stores, particularly in
densely populated areas. This is supported by recent analysis which
demonstrated the catchment area for our existing stores is an
average drive time of less than 15 minutes. During the last year we
have opened many smaller, profitable High Street stores. We expect
to continue this activity in the second half.
In the Rest of Europe we opened two new stores and closed one
store, ending the period with 118 stores. We have also been able to
sublet space in three more stores, reducing the net rent
charge.
4. Expanding selectively in Continental Europe
We continue to monitor the floor covering markets across
Northern Europe looking for opportunities which we believe would
provide the potential for growth in Group profitability.
5. Reaching more customers through additional sales channels
In the autumn of 2009 we launched our transactional and
informational websites, which have been further developed over the
last twelve months. On a weekly basis we are now achieving over
55,000 unique visitors, sending out over 800 samples and booking
nearly 700 appointments. The samples/appointment leads can be
specifically tracked to store sales, demonstrating the importance
of having an effective and integrated multi-channel proposition.
The strength of this proposition was recently recognised at the
Retail Systems Awards 2010 when www.carpetright.co.uk was voted
Retail Website of the Year.
We have continued to focus on gaining additional sales through
the insurance replacement business and have received positive
feedback about the quality of our products and service. Although
the market has been impacted by a lower volume of claims, which has
resulted in our sales from this channel being below the previous
year, we believe we have a strong proposition which has the ability
to deliver incremental benefit in future years.
During the year significant effort has been devoted to
developing an appropriate offer for house builders. Although the
sales in the period have been minimal in the context of the whole
business, they are an increase on the previous year and we believe
we have the foundations to grow this in the coming years.
Summary and Outlook
The economic environment in all our markets has made trading
tough. The business has focused on the opportunities available and
the roll out of our bed offer into more stores is generating a new
income stream and adding to the strength of the company.
Whilst we remain cautious about the retail market in the balance
of the financial year and throughout 2011, the Board has confidence
that the Group is well positioned to capitalise on opportunities
when consumer demand in our sector improves.
UK and Republic of Ireland - Operational Review
UK & RoI - Key financial results
2010 2009
GBPm GBPm Change
------------------------------- ------- ------ --------
Revenue 207.6 213.3 (2.7%)
=============================== ======= ====== ========
Like-for-like sales (6.1%) 3.9%
=============================== ======= ====== ========
Gross profit 128.9 131.6 (2.1%)
=============================== ======= ====== ========
Gross profit % 62.1% 61.7% 0.4pp
=============================== ======= ====== ========
Underlying operating profit 9.6 14.1 (31.9%)
=============================== ======= ====== ========
Underlying operating margin % 4.6% 6.6%
------------------------------- ------- ------ --------
Total revenue decreased by 2.7% to GBP207.6m. We have opened 17
stores and closed 19 stores in the period, which translated into
net space growth of 8,000 sq ft, an increase of 0.2% since the
start of the year.
The store portfolio is now as follows:
UK & RoI store base Store numbers Sq ft ('000)
---------------------
1 May 30 Oct 1 May 30 Oct
2010 Openings Closures 2010 2010 2010
--------------------- ------ --------- --------- ------- ------ -------
Standalone 537 11 (11) 537 4,690 4,699
===================== ====== ========= ========= ======= ====== =======
Concessions 49 6 (8) 47 119 118
===================== ====== ========= ========= ======= ====== =======
586 17 (19) 584 4,809 4,817
--------------------- ------ --------- --------- ------- ------ -------
Included in standalone stores :
---------------------------------------- --------- ------- ------ -------
Bed departments 131 48 (3) 176 186 237
--------------------- ------ --------- --------- ------- ------ -------
Like for like sales declined by 6.1% in the period. This
performance can be attributed to two key factors:
-- Underlying retail flooring performance was down 7.1%
reflecting the decline in mortgage approval figures, as more
stringent criteria are being exercised by lenders, along with an
extended period of fragile consumer confidence.
-- The focus on developing the bed offer and introducing it into
more stores contributed 1.0% of growth to the year on year
movement.
Gross profit declined by 2.1% to GBP128.9m, representing 62.1%
of sales, an increase of 0.4 percentage points. This is due to:
-- An improvement in the underlying floor covering margin of 0.6
percentage points. This was achieved through a combination of
management of promotions, negotiation with suppliers and increased
productivity in the Purfleet cutting facility.
-- The growth of bed sales, which accounted for a decline of 0.2
percentage points, as this part of the business operates on a lower
gross margin than floor coverings.
The total UK and RoI cost base increased by 1.5% year on year to
GBP119.3m. Store payroll continued to be managed closely to the
volume of sales, with average Full Time Equivalents in the first
half decreasing by 1.9% to 2,426. Store occupancy costs increased
year on year, primarily through underlying rent inflation plus new
space. The focus of marketing expenditure was to achieve the same
level of media coverage at a lower cost.
All of the above elements combined to produce an underlying
operating profit that declined 31.9% to GBP9.6m.
Rest of Europe - Operational Review
Rest of Europe - Key financial results
Change
2010 2009 Change (Local
GBPm GBPm (Reported) Currency)
--------------------------------- ------- ------- ------------ -----------
Revenue 40.4 43.4 (6.9%) (2.4%)
================================= ======= ======= ============ ===========
Like-for-like sales (local
currency) (2.9%) (3.6%)
================================= ======= ======= ============ ===========
Gross profit 23.2 25.2 (7.9%) (3.4%)
================================= ======= ======= ============ ===========
Gross profit % 57.4% 58.1% (0.7pp)
================================= ======= ======= ============ ===========
Underlying operating profit 3.0 4.1 (26.8%) (19.1%)
================================= ======= ======= ============ ===========
Underlying operating margin
% 7.4% 9.4%
--------------------------------- ------- ------- ------------ -----------
In local currency terms, total sales declined by 2.4% with like
for like sales down 2.9%. The opening months of the first half were
impacted by hot weather and the success of the Dutch football team
at the World Cup. There was an improvement in the second quarter,
some of which is attributable to the development of the laminate
proposition which has partially offset a decline in soft flooring.
This overall performance was in the context of a market which it is
estimated has declined by around 5% and as a consequence, we have
continued to increase our market share. After allowing for the
movement in exchange rates, the total sales translate to a 6.9%
decline in reported revenue.
The store portfolio is now as follows:
Rest of Europe
store base Store Numbers Sq ft ('000)
----------------- ===================================== ===============
1 May 30 Oct 1 May 30 Oct
2010 Openings Closures 2010 2010 2010
----------------- ------ --------- --------- ------- ------ -------
The Netherlands 89 2 (1) 90 1,063 1,065
================= ====== ========= ========= ======= ====== =======
Belgium 28 - - 28 335 335
================= ====== ========= ========= ======= ====== =======
117 2 (1) 118 1,398 1,400
----------------- ------ --------- --------- ------- ------ -------
The gross profit declined by 3.4% in local currency terms on the
reduced level of sales. The gross profit percentage declined by 0.7
percentage points, reflecting the greater participation of lower
margin laminate sales in the mix.
Total costs declined by 0.4% in local currency terms. The year
on year decrease was a combination of inflationary pressures from
salary and rent indexation offset by store headcount reductions and
cost management activities.
In local currency terms the underlying operating profit
decreased by 19.1%, which translated into a 26.8% decline in
reported profit to GBP3.0m with an operating margin of 7.4%.
Group Financial Review
Exceptional items
The Group recorded a net charge of GBP0.2m (2009: charge of
GBP2.9m) in the first half:
(Charge) / Gain
2010 2009
GBPm GBPm
------------------------------------------------------ -------- --------
Profit/(loss) on disposal of properties 0.2 (0.2)
UK & RoI
: Store impairment charge (0.2) (1.2)
Onerous lease charge (0.2) -
Poland
: Store impairment charge - (2.0)
Closure costs - (0.5)
Over-provision from pre-opening costs of Purfleet - 1.0
Net Charge (0.2) (2.9)
------------------------------------------------------ -------- --------
We continued to trade our property portfolio, although in
current market conditions this is difficult. A net profit of
GBP0.2m was delivered (2009: loss of GBP0.2m).
As a result of the challenging retail environment we have
reviewed the carrying value of the store assets in our balance
sheet. The models used to value these assets include a number of
assumptions relating to market growth and inflationary
expectations. The tests have led to a net impairment of GBP0.2m in
relation to six loss making stores, primarily located in the
Republic of Ireland. In addition, there are two properties where we
previously traded, where we have made an onerous lease provision on
the basis of the difference between the expected inflows and
outflows for these properties.
Taxation
The taxation charge is based on an estimated full year effective
tax rate of 29.7% (2009: 29.5%).
Net debt and cash flow
The Group's net debt at 30 October 2010 was GBP58.5m, a
reduction of GBP12.8m from the year end position of GBP71.3m. This
decrease was primarily driven by the operational profit performance
and a decrease in working capital.
The average net debt figure in the first half was GBP70.1m
(2009: GBP97.5m) and the Group's average cost of funding was 7.3%
(2009: 6.8%).
Summary cash flow
52 wks to
2010 2009 1 May 2010
GBPm GBPm GBPm
--------------------------------- ------- ------- ------------
Underlying Operating Profit 12.6 17.4 34.1
================================= ======= ======= ============
Depreciation and non-cash items 9.2 9.9 18.6
================================= ======= ======= ============
Exceptional items - 0.5 (1.7)
================================= ======= ======= ============
(Increase)/Decrease in stock (1.0) (0.2) 1.5
================================= ======= ======= ============
(Increase)/Decrease in working
capital 2.8 11.2 5.8
--------------------------------- ------- ------- ------------
Cash generated by operations 23.6 38.8 58.3
================================= ======= ======= ============
Net interest paid (2.4) (3.8) (6.8)
================================= ======= ======= ============
Corporation Tax paid (0.2) (3.0) (9.9)
================================= ======= ======= ============
Net capital expenditure (3.6) (5.6) (9.6)
--------------------------------- ------- ------- ------------
Free cash flow 17.4 26.4 32.0
================================= ======= ======= ============
Dividends paid (5.4) (2.7) (8.1)
================================= ======= ======= ============
Other 0.8 - 1.9
--------------------------------- ------- ------- ------------
Movement in net debt 12.8 23.7 25.8
================================= ======= ======= ============
Opening net debt (71.3) (97.1) (97.1)
--------------------------------- ------- ------- ------------
Closing net debt (58.5) (73.4) (71.3)
--------------------------------- ------- ------- ------------
Net capital expenditure was GBP3.6m (2009: GBP5.6m). This can be
broken down into the following principal categories:
2010 2009
GBPm GBPm
---------------------------------- ------ ------
Core capital expenditure 4.1 5.8
================================== ====== ======
Proceeds from property disposals (0.5) (0.2)
---------------------------------- ------ ------
Total 3.6 5.6
---------------------------------- ------ ------
Gross bank borrowings at the balance sheet date were GBP60.8m
(2009: GBP76.5m) of which GBP51.3m is term based with the balance
of GBP9.5m being drawn down from overdraft facilities. The Group
had further undrawn, committed facilities of GBP49.4m at the
balance sheet date. The term of the majority of these facilities is
to July 2012 and they are subject to a number of covenants, against
which the Group monitors compliance. The Group has sufficient
headroom to enable it to comply with covenants on its existing
borrowings.
Pensions
At 30 October 2010 the IAS 19 net retirement benefit deficit was
GBP4.1m (1 May 2010: GBP4.8m). The change is predominantly due to a
decrease in the discount rate used to calculate the liability at
the half year. The half year discount rate was 5.2% (year end
5.5%), reflecting prevailing corporate bond rates and together with
a decrease in the inflation rate used of 3.1% (year end 3.6%), has
led to a decrease of GBP0.7m in the calculation of the net pension
liability for accounting purposes at 30 October 2010. The decrease
in the deficit has also been impacted in part by an increase of
GBP0.3m in the market value of the assets arising from a
combination of higher equity prices and a tightening of corporate
bond yields. As previously announced, the scheme was closed to
future accrual with effect from 1 May 2010.
The company agreed a recovery plan with the Trustees in 2009 and
this will be reviewed following the next triennial valuation, which
will be performed at 5 April 2011.
Dividend
The Board has declared an interim dividend of 8.0p per
share.
In determining the interim dividend, the Board considered the
level of profit this half year compared with the same period last
year, as well as the importance of stability in the dividend flow
to our investors. The Board has decided to maintain the interim
dividend at the same level as last year. If the Board's current
expectations for the full year result are achieved, the full year
dividend is likely to be at a similar level to last year. When
profitability increases, the Board expects to rebalance the
dividend to a lower interim relative to the final dividend to
reflect more accurately the balance of profits earned through the
year.
The dividend will be paid on 18 February 2011 to shareholders on
the register on 4 February 2011.
Lord Harris of Peckham
13 December 2010
Carpetright plc
Condensed consolidated income statement for 26 weeks ended 30
October 2010
26 weeks 26 weeks
ended 30 ended 52 weeks
October 31 October ended
2010 2009 1 May 2010
Unaudited Unaudited Audited
Notes GBPm GBPm GBPm
------------------- ------ ------------ ------------- ------------
Revenue 4 248.0 258.0 516.6
------------------- ------ ------------ ------------- ------------
Cost of sales (95.9) (100.5) (200.6)
------------------- ------ ------------ ------------- ------------
Gross profit 4 152.1 157.5 316.0
------------------- ------ ------------ ------------- ------------
Other operating
income 1.9 0.6 2.4
------------------- ------ ------------ ------------- ------------
Administration
expenses (141.6) (143.6) (290.2)
------------------- ------ ------------ ------------- ------------
Operating profit 4 12.4 14.5 28.2
------------------- ------ ------------ ------------- ------------
Operating profit
before
exceptional
items 4 12.6 17.4 34.1
------------------- ------ ------------ ------------- ------------
Exceptional items 5 (0.2) (2.9) (5.9)
------------------- ------ ------------ ------------- ------------
Finance costs (3.1) (4.1) (6.8)
------------------- ------ ------------ ------------- ------------
Finance income 0.5 0.6 0.9
------------------- ------ ------------ ------------- ------------
Profit before tax 9.8 11.0 22.3
------------------- ------ ------------ ------------- ------------
Tax 6 (2.8) (3.2) (6.5)
------------------- ------ ------------ ------------- ------------
Profit for the financial
period attributable to
equity shareholders of
the Company 7.0 7.8 15.8
--------------------------- ------------ ------------- ------------
Basic earnings per
share 8 10.4 11.6 23.5
------------------- ------ ------------ ------------- ------------
Diluted earnings
per share 8 10.4 11.5 23.5
------------------- ------ ------------ ------------- ------------
All material items in the income statement arise from
continuing operations.
Condensed consolidated statement of comprehensive income for 26
weeks ended 30 October 2010
---------------------------------------------------------------------
26 weeks 26 weeks
ended ended 52 weeks
30 October 31 October ended
2010 2009 1 May 2010
Unaudited Unaudited Audited
Notes GBPm GBPm GBPm
------------------ ------ ------------ ------------- ------------
Profit for the
financial
period 7.0 7.8 15.8
------------------ ------ ------------ ------------- ------------
Actuarial gain/(loss) on
defined benefit pension
scheme 11 0.5 (3.3) (3.0)
-------------------------- ------------ ------------- ------------
Fair value gain/(loss) in
respect of cash flow
hedges 0.6 (0.1) -
-------------------------- ------------ ------------- ------------
Exchange gain/(loss) in
respect of hedged equity
investments 0.5 0.3 (1.7)
-------------------------- ------------ ------------- ------------
Tax on components of
other comprehensive
income - - 0.6
-------------------------- ------------ ------------- ------------
Other
comprehensive
income for the
period 1.6 (3.1) (4.1)
------------------ ------ ------------ ------------- ------------
Total comprehensive
income for the period
attributable to equity
shareholders of the
Company 8.6 4.7 11.7
-------------------------- ------------ ------------- ------------
The notes on pages 15 to 21 form an integral part of this
consolidated interim financial information.
Carpetright plc
Condensed consolidated statement of changes in equity for 26
weeks ended 30 October 2010
Capital
Share Share Treasury Redemption Translation Hedging Retained
Capital Premium Shares Reserve Reserve Reserve Earnings Total
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
--------------- -------- -------- --------- ----------- ------------ -------- --------- ------
At 1 May 2010 0.7 15.4 (0.2) 0.1 10.2 (1.2) 46.2 71.2
--------------- -------- -------- --------- ----------- ------------ -------- --------- ------
Total
comprehensive
income for
the financial
period - - - - 0.5 0.6 7.5 8.6
--------------- -------- -------- --------- ----------- ------------ -------- --------- ------
Purchase of
own shares by
employee
share trust - - (0.1) - - - - (0.1)
--------------- -------- -------- --------- ----------- ------------ -------- --------- ------
Share-based
payments - - - - - - 0.4 0.4
--------------- -------- -------- --------- ----------- ------------ -------- --------- ------
Dividends paid
to Group
shareholders - - - - - - (5.4) (5.4)
--------------- -------- -------- --------- ----------- ------------ -------- --------- ------
At 30 October
2010 0.7 15.4 (0.3) 0.1 10.7 (0.6) 48.7 74.7
--------------- -------- -------- --------- ----------- ------------ -------- --------- ------
Capital
Share Share Treasury Redemption Translation Hedging Retained
Capital Premium Shares Reserve Reserve Reserve Earnings Total
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
--------------- -------- -------- --------- ----------- ------------ -------- --------- ------
At 3 May 2009 0.7 15.4 (0.1) 0.1 11.9 (2.3) 41.5 67.2
--------------- -------- -------- --------- ----------- ------------ -------- --------- ------
Total
comprehensive
income for
the financial
period - - - - 0.3 (0.1) 4.5 4.7
--------------- -------- -------- --------- ----------- ------------ -------- --------- ------
Purchase of
own shares by
employee
share trust - - (0.1) - - - - (0.1)
--------------- -------- -------- --------- ----------- ------------ -------- --------- ------
Share-based
payments - - - - - - 0.2 0.2
--------------- -------- -------- --------- ----------- ------------ -------- --------- ------
Dividends paid
to Group
shareholders - - - - - - (2.7) (2.7)
--------------- -------- -------- --------- ----------- ------------ -------- --------- ------
At 31 October
2009 0.7 15.4 (0.2) 0.1 12.2 (2.4) 43.5 69.3
--------------- -------- -------- --------- ----------- ------------ -------- --------- ------
Carpetright plc
Condensed consolidated balance sheet as at 30 October 2010
26 weeks 26 weeks
ended ended 52 weeks
30 October 31 October ended
2010 2009 1 May 2010
Unaudited Unaudited Audited
Notes GBPm GBPm GBPm
---------------------------- ------ ------------ ------------ ------------
Assets
---------------------------- ------ ------------ ------------ ------------
Non-current assets
------------
Intangible assets 65.6 69.1 67.2
---------------------------- ------ ------------ ------------ ------------
Property, plant and
equipment 147.3 156.7 149.5
---------------------------- ------ ------------ ------------ ------------
Investment property 25.8 25.5 26.1
------------ ------------ ------------
Deferred tax assets 2.8 3.2 2.9
---------------------------- ------ ------------ ------------ ------------
Trade and other receivables 1.3 1.4 1.4
------------ ------------ ------------
Total non-current assets 242.8 255.9 247.1
---------------------------- ------ ------------ ------------ ------------
Current assets
Inventories 42.4 43.4 41.3
---------------------------- ------ ------------ ------------ ------------
Assets held for sale - 0.6 -
---------------------------- ------ ------------ ------------ ------------
Trade and other receivables 42.0 37.3 38.1
---------------------------- ------ ------------ ------------ ------------
Cash and cash equivalents 10 5.8 8.7 8.3
------------ ------------ ------------
Total current assets 90.2 90.0 87.7
---------------------------- ------ ------------ ------------ ------------
Total assets 333.0 345.9 334.8
---------------------------- ------ ------------ ------------ ------------
Liabilities
---------------------------- ------ ------------ ------------ ------------
Current liabilities
Trade and other payables (120.0) (120.1) (114.2)
---------------------------- ------ ------------ ------------ ------------
Obligations under finance
leases 10 (0.1) (0.5) (0.1)
---------------------------- ------ ------------ ------------ ------------
Borrowings and overdrafts 10 (20.9) (12.0) (22.2)
---------------------------- ------ ------------ ------------ ------------
Current tax liabilities (7.9) (5.6) (5.6)
------------ ------------ ------------
Total current liabilities (148.9) (138.2) (142.1)
---------------------------- ------ ------------ ------------ ------------
Non-current liabilities
---------------------------- ------ ------------ ------------ ------------
Trade and other payables (36.6) (33.9) (34.2)
------------ ------------ ------------
Obligations under finance
leases 10 (2.9) (3.0) (2.9)
---------------------------- ------ ------------ ------------ ------------
Borrowings 10 (39.9) (64.5) (53.3)
---------------------------- ------ ------------ ------------ ------------
Derivative financial
instruments 10 (0.5) (2.1) (1.1)
---------------------------- ------ ------------ ------------ ------------
Provisions for liabilities
and charges (1.7) (1.1) (1.8)
---------------------------- ------ ------------ ------------ ------------
Deferred tax liabilities (23.7) (28.1) (23.4)
---------------------------- ------ ------------ ------------ ------------
Retirement benefit
obligations 11 (4.1) (5.7) (4.8)
---------------------------- ------ ------------ ------------ ------------
Total non-current
liabilities (109.4) (138.4) (121.5)
---------------------------- ------ ------------ ------------ ------------
Total liabilities (258.3) (276.6) (263.6)
---------------------------- ------ ------------ ------------ ------------
Net assets 74.7 69.3 71.2
---------------------------- ------ ------------ ------------ ------------
Equity
Share capital 0.7 0.7 0.7
---------------------------- ------ ------------ ------------ ------------
Share premium 15.4 15.4 15.4
---------------------------- ------ ------------ ------------ ------------
Treasury shares (0.3) (0.2) (0.2)
---------------------------- ------ ------------ ------------ ------------
Other reserves 58.9 53.4 55.3
Total equity attributable to equity
shareholders of the Company 74.7 69.3 71.2
------------------------------------ ------------ ------------ ------------
The notes on pages 15 to 21 form an integral part of this
consolidated interim financial information.
Carpetright plc
Condensed consolidated statement of cash flows for 26 weeks
ended 30 October 2010
26 weeks 26 weeks
ended ended 52 weeks
30 October 31 October ended
2010 2009 1 May 2010
Unaudited Unaudited audited
Notes GBPm GBPm GBPm
---------------------------- ------ ------------ ------------ ------------
Cash flows from operating
activities
---------------------------- ------ ------------ ------------ ------------
Profit before tax 9.8 11.0 22.3
---------------------------- ------ ------------ ------------ ------------
Adjusted for:
---------------------------- ------ ------------ ------------ ------------
Depreciation and
amortisation 8.8 9.7 19.1
---------------------------- ------ ------------ ------------ ------------
(Profit)/loss on
property disposals 5 (0.2) 0.2 0.7
---------------------------- ------ ------------ ------------ ------------
Exceptional non-cash
items 0.4 3.2 3.5
---------------------------- ------ ------------ ------------ ------------
Other non-cash items 0.4 0.2 (0.5)
---------------------------- ------ ------------ ------------ ------------
Net finance costs 2.6 3.5 5.9
---------------------------- ------ ------------ ------------ ------------
Operating cash flows before
movements in working capital 21.8 27.8 51.0
------------------------------------ ------------ ------------ ------------
(Increase)/decrease in
inventories (1.0) (0.2) 1.5
---------------------------- ------ ------------ ------------ ------------
Increase in trade and
other receivables (3.9) (3.0) (3.8)
---------------------------- ------ ------------ ------------ ------------
Increase in trade and
other payables 6.7 14.2 9.6
---------------------------- ------ ------------ ------------ ------------
Cash generated by
operations 23.6 38.8 58.3
---------------------------- ------ ------------ ------------ ------------
Interest paid (2.4) (3.9) (7.0)
---------------------------- ------ ------------ ------------ ------------
Corporation taxes paid (0.2) (3.0) (9.9)
---------------------------- ------ ------------ ------------ ------------
Net cash generated from operating
activities 21.0 31.9 41.4
------------------------------------ ------------ ------------ ------------
Cash flows from investing
activities
---------------------------- ------ ------------ ------------ ------------
Proceeds on disposal of
property, plant and
equipment and
investment property 9 0.5 0.2 0.5
---------------------------- ------ ------------ ------------ ------------
Purchases of intangible
assets 9 (0.3) (0.6) (1.1)
---------------------------- ------ ------------ ------------ ------------
Purchases of property,
plant and equipment and
investment property 9 (3.8) (5.2) (9.0)
---------------------------- ------ ------------ ------------ ------------
Interest received - 0.1 0.2
---------------------------- ------ ------------ ------------ ------------
Net cash used in investing
activities (3.6) (5.5) (9.4)
---------------------------- ------ ------------ ------------ ------------
Cash flows from financing
activities
---------------------------- ------ ------------ ------------ ------------
Purchase of Treasury
shares by Employee
Share Trust - (0.1) (0.2)
---------------------------- ------ ------------ ------------ ------------
Repayment of borrowings 10 (11.0) (34.6) (43.6)
---------------------------- ------ ------------ ------------ ------------
New loans advanced 10 - 2.7 2.7
---------------------------- ------ ------------ ------------ ------------
Repayment of obligations
under finance leases 10 - (0.4) (0.9)
---------------------------- ------ ------------ ------------ ------------
Dividends paid to Group
shareholders 7 (5.4) (2.7) (8.1)
---------------------------- ------ ------------ ------------ ------------
Net cash used in financing
activities (16.4) (35.1) (50.1)
---------------------------- ------ ------------ ------------ ------------
Net increase/(decrease) in
cash and cash equivalents 10 1.0 (8.7) (18.1)
---------------------------- ------ ------------ ------------ ------------
Cash and cash equivalents at the
beginning of
the period (5.0) 13.0 13.0
------------------------------------ ------------ ------------ ------------
Exchange differences 10 0.3 (0.1) 0.1
---------------------------- ------ ------------ ------------ ------------
Cash and cash equivalents
at the end of the period 10 (3.7) 4.2 (5.0)
---------------------------- ------ ------------ ------------ ------------
For the purposes of the cash flow statement, cash and cash
equivalents are reported net of overdrafts repayable on demand.
Overdrafts are excluded from the definition of cash and cash
equivalents disclosed in the balance sheet.
The notes on pages 15 to 21 form an integral part of this
consolidated interim financial information.
1. General information
This condensed consolidated half-yearly financial information
was approved for issue on 13 December 2010.
This interim report does not comprise statutory accounts within
the meaning of Section 434(3) of the Companies Act 2006. It has
been reviewed but not audited by the Group's auditors. The
statutory accounts for the year ended 1 May 2010 were approved by
the Board of Directors on 28 June 2010 and delivered to the
Registrar of Companies. The report of the auditors on those
accounts was unqualified, did not contain an emphasis of matter
paragraph and did not contain any statement made under section 498
of the Companies Act 2006.
2. Basis of preparation
These condensed consolidated half-yearly financial statements
for the 26 weeks ended 30 October 2010 have been prepared in
accordance with the Disclosure and Transparency Rules of the
Financial Services Authority and with IAS 34, 'Interim financial
reporting' as adopted by the European Union. The half-yearly
condensed consolidated financial report should be read in
conjunction with the annual financial statements for the 52 weeks
ended 1 May 2010, which have been prepared in accordance with IFRSs
as adopted by the European Union.
The Directors are satisfied that it is appropriate for these
financial statements to be prepared on a going concern basis.
3. Accounting policies
Except as described below the accounting policies adopted are
consistent with those of the annual financial statements for the 52
weeks ended 1 May 2010, as described in those annual financial
statements.
Taxes on income for interim periods are accrued using the tax
rate that would be applicable to expected total annual
earnings.
The following new standards and amendments to standards, which
are mandatory for the first time in the financial year beginning 2
May 2010, are either not currently relevant or material for the
Group:
IFRS3 (revised), 'Business combinations'
IAS27 (revised), 'Consolidated and separate financial
statements'
IAS38 (amendment), 'Intangible assets'
IFRIC16 'Hedges of net investment in a foreign operation'
IFRIC17 'Distribution of non-cash assets to owners'
IFRIC18 'Transfer of assets from customers'
There are no new standards and amendments to standards which are
relevant to the Group.
4. Segmental analysis
The operating segments have been determined based on reports
reviewed by the Board that are used to make strategic decisions.
Following the closure of the Polish operation in 2009/10 the
management structure for Europe has been changed. The Netherlands
and Belgium are now managed as a combined business by a single
management team who have no other responsibilities. Information is
presented to the Board of Carpetright plc (the Chief Operating
Decision Maker) on a combined basis. As a result it is considered
that the combined business forms a single reportable operating
segment under IFRS 8. The comparative segmental information has
been restated to the new basis.
The reportable operating segments derive their revenue primarily
from the retail of floor coverings and beds. Central costs are
incurred principally in the UK and are immaterial. As such these
costs are included within the UK & RoI segment. Sales between
segments are carried out at arm's length.
The segment information provided to the Board for the reportable
segments for the 26 weeks ended 30 October 2010 is as follows:
26 weeks to 30 October 26 weeks to 31 October
2010 2009
--------------- --------------------------- -----------------------------------
UK & UK &
RoI Europe Group RoI Europe Other Group
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
--------------- -------- ------- -------- -------- ------- ------ --------
Gross Revenue 209.4 40.4 249.8 215.1 43.4 1.3 259.8
--------------- -------- ------- -------- -------- ------- ------ --------
Inter-segment
revenue (1.8) - (1.8) (1.8) - - (1.8)
--------------- -------- ------- -------- -------- ------- ------ --------
Revenues from
external
customers 207.6 40.4 248.0 213.3 43.4 1.3 258.0
--------------- -------- ------- -------- -------- ------- ------ --------
Gross profit 128.9 23.2 152.1 131.6 25.2 0.7 157.5
--------------- -------- ------- -------- -------- ------- ------ --------
Underlying
operating
profit 9.6 3.0 12.6 14.1 4.1 (0.8) 17.4
--------------- -------- ------- -------- -------- ------- ------ --------
Exceptional
items (0.2) - (0.2) (0.5) - (2.4) (2.9)
--------------- -------- ------- -------- -------- ------- ------ --------
Operating
profit 9.4 3.0 12.4 13.6 4.1 (3.2) 14.5
--------------- -------- ------- -------- -------- ------- ------ --------
Finance income 0.5 - 0.5 0.5 - - 0.5
--------------- -------- ------- -------- -------- ------- ------ --------
Inter-company
interest (0.1) 0.1 - 0.1 - (0.1) -
--------------- -------- ------- -------- -------- ------- ------ --------
Finance costs (3.1) - (3.1) (3.9) (0.1) - (4.0)
--------------- -------- ------- -------- -------- ------- ------ --------
Profit before
tax 6.7 3.1 9.8 10.3 4.0 (3.3) 11.0
--------------- -------- ------- -------- -------- ------- ------ --------
Tax (2.1) (0.7) (2.8) (2.3) (0.9) - (3.2)
--------------- -------- ------- -------- -------- ------- ------ --------
Profit for the
financial
period 4.6 2.4 7.0 8.0 3.1 (3.3) 7.8
--------------- -------- ------- -------- -------- ------- ------ --------
Segment
Assets:
--------------- -------- ------- -------- -------- ------- ------ --------
Segment assets 234.8 107.3 342.1 248.1 113.9 3.2 365.2
--------------- -------- ------- -------- -------- ------- ------ --------
Inter-segment
balances (1.3) (7.8) (9.1) (11.4) (7.9) - (19.3)
--------------- -------- ------- -------- -------- ------- ------ --------
Balance sheet
total assets 233.5 99.5 333.0 236.7 106.0 3.2 345.9
--------------- -------- ------- -------- -------- ------- ------ --------
Segment
Liabilities:
--------------- -------- ------- -------- -------- ------- ------ --------
Segment
liabilities (230.3) (37.1) (267.4) (238.7) (48.2) (9.0) (295.9)
--------------- -------- ------- -------- -------- ------- ------ --------
Inter-segment
balances 7.8 1.3 9.1 - 11.1 8.2 19.3
--------------- -------- ------- -------- -------- ------- ------ --------
Balance sheet
total
liabilities (222.5) (35.8) (258.3) (238.7) (37.1) (0.8) (276.6)
--------------- -------- ------- -------- -------- ------- ------ --------
Other
segmental
items:
--------------- -------- ------- -------- -------- ------- ------ --------
Depreciation
and
amortisation 7.2 1.6 8.8 7.8 1.7 0.2 9.7
--------------- -------- ------- -------- -------- ------- ------ --------
Additions to
non-current
assets 4.3 0.8 5.1 3.4 0.4 - 3.8
--------------- -------- ------- -------- -------- ------- ------ --------
Carpetright plc is domiciled in the UK. The Group's revenue from
external customers in the UK is GBP203.4m (2009: GBP208.6m) and the
total revenue from external customers from other countries is
GBP44.6m (2009: GBP49.4m). The total of non-current assets (other
than financial instruments, deferred tax assets and employment
benefit assets) located in the UK is GBP171.8m (2009: GBP182.9m)
and the total of those located in other countries is GBP77.3m
(2009: GBP89.1m).
Carpetright's trade has historically shown no distinct pattern
of seasonality with trade cycles more closely following economic
indicators such as consumer confidence and mortgage approvals.
The segment information based on last year segments provided to
the Board for the reportable segments for the 26 weeks ended 30
October 2010 is as follows:
26 weeks to 30 October 26 weeks to 31 October
2010 2009
--------------- -------- --------------------------------- -------------------------------------------
All All
UK & The other UK & The other
RoI Netherlands segments Group RoI Netherlands segments Group
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Gross Revenue 209.4 29.6 10.8 249.8 215.1 31.7 13.0 259.8
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Inter-segment
revenue (1.8) - - (1.8) (1.8) - - (1.8)
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Revenues from
external
customers 207.6 29.6 10.8 248.0 213.3 31.7 13.0 258.0
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Gross profit 128.9 17.2 6.0 152.1 131.6 18.4 7.5 157.5
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Underlying
operating
profit 9.6 2.7 0.3 12.6 14.1 3.1 0.2 17.4
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Exceptional
items (0.2) - - (0.2) (0.5) - (2.4) (2.9)
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Operating
profit 9.4 2.7 0.3 12.4 13.6 3.1 (2.2) 14.5
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Finance income 0.5 - - 0.5 0.5 - - 0.5
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Inter-company
interest (0.1) (0.1) 0.2 - 0.1 - (0.1) -
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Finance costs (3.1) (0.1) 0.1 (3.1) (3.9) (0.1) - (4.0)
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Profit before
tax 6.7 2.5 0.6 9.8 10.3 3.0 (2.3) 11.0
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Tax (2.1) (0.6) (0.1) (2.8) (2.3) (0.7) (0.2) (3.2)
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Profit for the
financial
period 4.6 1.9 0.5 7.0 8.0 2.3 (2.5) 7.8
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Segment
Assets:
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Segment assets 234.8 78.7 28.6 342.1 248.1 83.5 33.6 365.2
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Inter-segment
balances (1.3) - (7.8) (9.1) (11.4) (0.1) (7.8) (19.3)
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Balance sheet
total assets 233.5 78.7 20.8 333.0 236.7 83.4 25.8 345.9
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Segment
Liabilities:
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Segment
liabilities (230.3) (19.7) (17.4) (267.4) (238.7) (30.4) (26.8) (295.9)
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Inter-segment
balances 7.8 0.6 0.7 9.1 - 11.1 8.2 19.3
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Balance sheet
total
liabilities (222.5) (19.1) (16.7) (258.3) (238.7) (19.3) (18.6) (276.6)
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Other
segmental
items:
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Depreciation
and
amortisation 7.2 1.2 0.4 8.8 7.8 1.3 0.6 9.7
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Additions to
non-current
assets 4.3 0.7 0.1 5.1 3.4 0.4 - 3.8
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
52 weeks to 1 May 2010 52 weeks to 1 May 2010
on last year segments on this year segments
--------------- ------------------------------------------- -------------------------------------------
All
UK & The other UK &
RoI Netherlands segments Group RoI Europe Other Group
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Gross Revenue 428.8 65.5 25.9 520.2 428.8 89.2 2.2 520.2
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Inter-segment
revenue (3.6) - - (3.6) (3.6) - - (3.6)
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Revenues from
external
customers 425.2 65.5 25.9 516.6 425.2 89.2 2.2 516.6
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Gross profit 263.7 38.3 14.0 316.0 263.7 51.6 0.7 316.0
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Underlying
operating
profit 26.2 7.8 0.1 34.1 26.2 9.6 (1.7) 34.1
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Exceptional
items (2.4) - (3.5) (5.9) (2.4) - (3.5) (5.9)
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Operating
profit 23.8 7.8 (3.4) 28.2 23.8 9.6 (5.2) 28.2
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Finance income 0.9 - - 0.9 0.9 - - 0.9
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Intercompany
interest - (0.1) 0.1 - - 0.1 (0.1) -
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Finance costs (6.6) (0.1) (0.1) (6.8) (6.6) (0.2) - (6.8)
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Profit before
tax 18.1 7.6 (3.4) 22.3 18.1 9.5 (5.3) 22.3
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Tax (4.3) (1.8) (0.4) (6.5) (4.3) (2.2) - (6.5)
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Profit for the
financial
period 13.8 5.8 (3.8) 15.8 13.8 7.3 (5.3) 15.8
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Segment
Assets:
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Segment assets 244.3 78.1 33.1 355.5 244.3 105.3 2.7 352.3
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Inter-segment
balances (11.4) (0.1) (9.2) (20.7) (11.4) (5.3) (0.8) (17.5)
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Balance sheet
total assets 232.9 78.0 23.9 334.8 232.9 100.0 1.9 334.8
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Segment
Liabilities:
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Segment
liabilities (232.9) (23.9) (27.5) (284.3) (232.9) (37.9) (10.3) (281.1)
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Inter-segment
balances 5.2 5.6 9.9 20.7 5.2 2.4 9.9 17.5
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Balance sheet
total
liabilities (227.7) (18.3) (17.6) (263.6) (227.7) (35.5) (0.4) (263.6)
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Other
segmental
items:
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Depreciation
and
amortisation 15.5 2.6 1.0 19.1 15.5 3.4 0.2 19.1
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
Additions to
non-current
assets 6.5 0.7 0.9 8.1 6.5 1.6 - 8.1
--------------- -------- ------------ --------- -------- -------- ------------ --------- --------
5. Exceptional items
26 weeks
26 weeks ended ended
30 October 31 October 52 weeks ended
2010 2009 1 May 2010
GBPm GBPm GBPm
------------------------------ --------------- ------------ ---------------
Disclosed in the income
statement:
------------------------------ --------------- ------------ ---------------
Profit/(loss) on property
disposals 0.2 (0.2) (0.7)
------------------------------ --------------- ------------ ---------------
UK&RoI impairment of
property, plant and
equipment (0.2) (1.2) (1.4)
------------------------------ --------------- ------------ ---------------
Onerous lease provision (0.2) - (1.4)
------------------------------ --------------- ------------ ---------------
Poland:
------------------------------ --------------- ------------ ---------------
Impairment of property, plant
and equipment - (2.0) (1.8)
------------------------------ --------------- ------------ ---------------
Closure costs - (0.5) (1.7)
------------------------------ --------------- ------------ ---------------
Over provision for
pre-opening costs of
Purfleet - 1.0 1.1
------------------------------ --------------- ------------ ---------------
Total (0.2) (2.9) (5.9)
------------------------------ --------------- ------------ ---------------
6. Taxation
26 weeks
26 weeks ended ended
30 October 31 October 52 weeks ended
2010 2009 1 May 2010
GBPm GBPm GBPm
------------------------------ --------------- ------------ ---------------
Current 2.5 2.9 6.0
------------------------------ --------------- ------------ ---------------
Deferred 0.3 0.3 0.5
------------------------------ --------------- ------------ ---------------
2.8 3.2 6.5
------------------------------ --------------- ------------ ---------------
The estimated tax rates on the profits of the Group are as follows:
------------------------------------------------------------------------------
52 weeks
ended
30 April 52 weeks ended
2011 1 May 2010
% %
------------------------------ --------------- ------------ ---------------
Weighted average annual
underlying tax rate 29.7 25.2
------------------------------ --------------- ------------ ---------------
Weighted average annual
effective tax rate 29.7 29.5
------------------------------ --------------- ------------ ---------------
The effective tax rate is defined as the tax charged or credited
as a percentage of the accounting profit before tax. The underlying
tax rate is defined as the effective tax rate after adjusting for,
when relevant, profit/(loss) on property disposals and other
exceptional items and tax adjustments in respect of such items.
7. Dividends
26 weeks ended 30 October 26 weeks ended 31
2010 October 2009
---------------- -------------------------- -------------------------
Pence/share GBPm Pence/share GBPm
---------------- ----------------- ------- ---------------- -------
Final prior year
dividend paid 8.0 5.4 4.0 2.7
----------------- ---------------- ------- ---------------- -------
Proposed current
year interim
dividend 8.0 5.4 8.0 5.4
----------------- ---------------- ------- ---------------- -------
The proposed interim dividend of 8.0p per share was approved by
the Board of Directors on 13 December 2010 but has not been
included as a liability in these financial statements. The proposed
dividend will be paid on 18 February 2011 to shareholders who are
on the register of members on 4 February 2011.
8. Earnings per share
26 weeks ended 30 October 26 weeks ended 31 52 weeks ended 1
2010 October 2009 May 2010
---------- ------------------------------- ------------------------------- -------------------------------
Weighted Weighted Weighted
average average average
number Earnings number Earnings number Earnings
of per of per of per
Earnings shares share Earnings shares share Earnings shares share
GBPm Millions Pence GBPm Millions Pence GBPm Millions Pence
---------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Basic
earnings
per
share 7.0 67.2 10.4 7.8 67.2 11.6 15.8 67.2 23.5
---------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Effect of
dilutive
share
options - 0.4 - - 0.4 (0.1) 0.1 0.4 -
---------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Diluted
earnings
per
share 7.0 67.6 10.4 7.8 67.6 11.5 15.9 67.6 23.5
---------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
The Directors have presented an additional measure of earnings
per share based on underlying earnings as they believe this
provides a more comparable measure on an ongoing basis. Underlying
earnings is defined as profit after adjusting for post tax
profits/(losses) on exceptional items.
26 weeks 26 weeks
ended ended 52 weeks
30 October 31 October ended
2010 2009 1 May 2010
Pence Pence Pence
------------------------------------ ------------ ------------ ------------
Basic earnings per share 10.4 11.6 23.5
------------------------------------ ------------ ------------ ------------
Adjusted for the effect of
profit/(loss) on exceptional
items:
------------------------------------ ------------ ------------ ------------
Exceptional items 0.3 4.3 8.7
------------------------------------ ------------ ------------ ------------
Tax thereon - (0.4) (0.6)
------------------------------------ ------------ ------------ ------------
Underlying earnings per share 10.7 15.5 31.6
------------------------------------ ------------ ------------ ------------
9. Capital expenditure
During the period, the Group spent approximately GBP0.3m (2009:
GBP0.6m) on intangible assets; GBP3.8m (2009: GBP5.2m) on the
acquisition and fit out of stores. Net proceeds from vacating
properties during the period were GBP0.5m (2009: GBP0.2m).
Capital commitments of GBP2.9m at 30 October 2010 for which no
provision has been made in the accounts relate to the acquisition
of tangible and intangible assets (2009 : GBP2.4m).
10. Borrowings
1 May 30 October
2010 2010
---------------------- --------------- ---------- ------------ -----------
Cash Exchange
flow movement Revaluation
GBPm GBPm GBPm GBPm GBPm
------- ------ ---------- ------------ -----------
Cash and cash
equivalents per the
balance sheet 8.3 (2.8) 0.3 - 5.8
---------------------- ------- ------ ---------- ------------ -----------
Bank overdrafts (13.3) 3.8 - - (9.5)
---------------------- ------- ------ ---------- ------------ -----------
Cash and cash
equivalents per the
cash flow statement (5.0) 1.0 0.3 - (3.7)
---------------------- ------- ------ ---------- ------------ -----------
Borrowings
---------------------- ------- ------ ---------- ------------ -----------
Current borrowings (8.9) (11.4)
---------------------- ------- ------ ---------- ------------ -----------
Non-current
borrowings (53.3) (39.9)
---------------------- ------- ------ ---------- ------------ -----------
(62.2) 11.0 (0.1) - (51.3)
---------------------- ------- ------ ---------- ------------ -----------
Obligation under
finance leases
---------------------- ------- ------ ---------- ------------ -----------
Current obligation
under finance
leases (0.1) (0.1)
---------------------- ------- ------ ---------- ------------ -----------
Non-current
obligation under
finance leases (2.9) (2.9)
---------------------- ------- ------ ---------- ------------ -----------
(3.0) - - - (3.0)
---------------------- ------- ------ ---------- ------------ -----------
Derivative financial
instruments (1.1) - - 0.6 (0.5)
---------------------- ------- ------ ---------- ------------ -----------
Net debt (71.3) 12.0 0.2 0.6 (58.5)
---------------------- ------- ------ ---------- ------------ -----------
2 May 31 October
2009 2009
-------- ------ ---------- ------------ -----------
Cash Exchange
flow movement Revaluation
GBPm GBPm GBPm GBPm GBPm
-------- ------ ---------- ------------ -----------
Cash and cash
equivalents per
the balance
sheet 17.4 (8.7) - - 8.7
------------------- -------- ------ ---------- ------------ -----------
Bank overdrafts (4.4) - (0.1) - (4.5)
------------------- -------- ------ ---------- ------------ -----------
Cash and cash
equivalents per
the cash flow
statement 13.0 (8.7) (0.1) - 4.2
------------------- -------- ------ ---------- ------------ -----------
Borrowings
------------------- -------- ------ ---------- ------------ -----------
Current borrowings (12.7) (7.5)
------------------- -------- ------ ---------- ------------ -----------
Non-current
borrowings (91.2) (64.5)
------------------- -------- ------ ---------- ------------ -----------
(103.9) 31.9 - - (72.0)
------------------- -------- ------ ---------- ------------ -----------
Obligation under
finance leases
------------------- -------- ------ ---------- ------------ -----------
Current obligation
under finance
leases (0.9) (0.5)
------------------- -------- ------ ---------- ------------ -----------
Non-current
obligation under
finance leases (3.0) (3.0)
------------------- -------- ------ ---------- ------------ -----------
(3.9) 0.4 - - (3.5)
------------------- -------- ------ ---------- ------------ -----------
Derivative
financial
instruments (2.3) - - 0.2 (2.1)
------------------- -------- ------ ---------- ------------ -----------
Net debt (97.1) 23.6 (0.1) 0.2 (73.4)
------------------- -------- ------ ---------- ------------ -----------
11. Retirement benefit obligation
26 weeks 26 weeks
ended ended
30 October 31 October 52 weeks ended
2010 2009 1 May 2010
GBPm GBPm GBPm
--------------------------------- ------------ ------------ ---------------
Opening retirement benefit
obligation (4.8) (2.4) (2.4)
--------------------------------- ------------ ------------ ---------------
Current service cost - (0.1) (0.3)
--------------------------------- ------------ ------------ ---------------
Curtailment gain - - 0.5
--------------------------------- ------------ ------------ ---------------
Interest cost (0.5) (0.5) (1.0)
--------------------------------- ------------ ------------ ---------------
Expected return on scheme assets 0.5 0.5 0.9
--------------------------------- ------------ ------------ ---------------
Employer contributions 0.2 0.1 0.5
--------------------------------- ------------ ------------ ---------------
Actuarial gains/(losses) 0.5 (3.3) (3.0)
--------------------------------- ------------ ------------ ---------------
Closing retirement benefit
obligation (4.1) (5.7) (4.8)
--------------------------------- ------------ ------------ ---------------
Fair value of pension scheme
assets 16.6 14.9 16.3
--------------------------------- ------------ ------------ ---------------
Present value of pension scheme
obligations (20.7) (20.6) (21.1)
--------------------------------- ------------ ------------ ---------------
Retirement benefit obligation (4.1) (5.7) (4.8)
--------------------------------- ------------ ------------ ---------------
The main financial assumptions used to assess the liabilities of
the scheme have been updated by independent qualified actuaries.
The most significant of these are the discount rate and the
inflation rate which are 5.2% (last full year 5.5%) and 3.1% (last
full year 3.6%) respectively.
The amount of the deficit varies if the main financial
assumptions change, particularly the discount rate. If the discount
rate
increased/decreased by 0.1% the IAS 19 deficit would
decrease/increase by approximately GBP0.3m.
12. Related party transactions
Details of transactions during the period with Companies of
which Lord Harris and/or M J Harris is a director and/or in which
Lord Harris holds a material interest are set out below.
Lease and concession
agreement Supply of goods / services
payments made payments made
---------------- -------------------------- -----------------------------
26 weeks 26 weeks 26 weeks 26 weeks
ended ended ended ended
30 October 31 October 30 October 31 October
2010 2009 2010 2009
GBP'000 GBP'000 GBP'000 GBP'000
---------------- ------------ ------------ -------------- -------------
Clacton Property
Investments
Ltd 17 117 - -
----------------- ------------ ------------ -------------- -------------
Edinburgh Retail
LLP 135 228 - -
----------------- ------------ ------------ -------------- -------------
Glenrothes
Retail LLP 28 94 - -
----------------- ------------ ------------ -------------- -------------
Greenock Retail
Ltd 113 113 - -
----------------- ------------ ------------ -------------- -------------
Harris Ventures
Ltd 31 130 19 49
----------------- ------------ ------------ -------------- -------------
Hull Unit Trust 177 177 - -
----------------- ------------ ------------ -------------- -------------
Islandview
Properties Ltd - 136 - -
----------------- ------------ ------------ -------------- -------------
Neath Retail LLP 2 75 - -
----------------- ------------ ------------ -------------- -------------
Wick Retail LLP 27 27 - -
----------------- ------------ ------------ -------------- -------------
As at 30 October 2010 the Group owed related parties GBP1,000
(2009 - GBP53,000).
13. Foreign exchange
The principal exchange rates used were as follows:
26 weeks ended 26 weeks ended 52 weeks
30 October 31 October ended
2010 2009 1 May 2010
--------- --------------- --------------- ------------
Euro
--------- --------------- --------------- ------------
Average 1.19 1.14 1.13
--------- --------------- --------------- ------------
Closing 1.15 1.12 1.15
--------- --------------- --------------- ------------
Zloty
--------- --------------- --------------- ------------
Average 4.76 4.87 4.71
--------- --------------- --------------- ------------
Closing 4.60 4.72 4.50
--------- --------------- --------------- ------------
Principal risks and uncertainties
The Board has considered the principal risks and uncertainties
for the remaining six months of the financial year and determined
that the risks presented in the 2010 Annual Report, described
below, remain for the rest of the financial year:
-- economic and market conditions
-- business strategy development and implementation
-- employee risk - management and customer service
-- entering new markets
-- cost inflation
-- supply chain and business continuity
-- IT systems
-- liquidity risk and financing
-- legislative and regulatory risk
These are detailed on page 11 of the 2010 Annual Report, a copy
of which is available on the Group's website
www.carpetright.plc.uk
Forward looking statements
Certain statements in this half year 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.
Statement of Directors' responsibilities
The condensed financial information has been prepared in
accordance with IAS 34, as adopted by the European Union, and the
interim management report herein includes a fair review of the
information required by DTR 4.2.7 and DTR 4.2.8 namely:
-- an indication of important events that have occurred during
the period and their impact on the interim financial statements,
and a description of the principal risks and uncertainties for the
remainder of the financial year
-- material related party transactions in the period and any
material changes in the related party transactions described in the
last annual report
The Directors of Carpetright plc are listed on page 15 of the
Group's 2010 Annual Report. Since the date of the Annual Report
there have been a number of changes to the composition of the
Board:
-- Geoff Brady resigned 31 August 2010
-- Simon Metcalf resigned 22 October 2010
-- Sandra Turner appointed 22 October 2010
-- Alan Dickinson appointed 22 October 2010
By order of the Board
Neil Page
Group Finance Director
13 December 2010
Interim review opinion
Independent review report to Carpetright plc
Introduction
We have been engaged by the Company to review the condensed set
of financial statements in the half-yearly financial report for the
26 weeks ended 30 October 2010, which comprises the condensed
consolidated income statement, condensed consolidated statement of
comprehensive income, condensed consolidated statement of changes
in equity, condensed consolidated statement of financial position,
condensed consolidated statement of cash flows, comparative figures
and related notes. We have read the other information contained in
the half-yearly financial report and considered whether it contains
any apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the Directors. The Directors are responsible
for preparing the half-yearly financial report in accordance with
the Disclosure and Transparency Rules of the United Kingdom's
Financial Services Authority.
As disclosed in note 2, the annual financial statements of the
Group are prepared in accordance with IFRSs as adopted by the
European Union. The condensed set of financial statements included
in this half-yearly financial report has been prepared in
accordance with International Accounting Standard 34, "Interim
Financial Reporting", as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review. This report, including the
conclusion, has been prepared for and only for the Company for the
purpose of the Disclosure and Transparency Rules of the Financial
Services Authority and for no other purpose. We do not, in
producing this report, accept or assume responsibility for any
other purpose or to any other person to whom this report is shown
or into whose hands it may come save where expressly agreed by our
prior consent in writing.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, 'Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity' issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion Based on our review, nothing has come to our
attention that causes us to believe that the condensed set of
financial statements in the half-yearly financial report for the 26
weeks ended 31 October 2010 is not prepared, in all material
respects, in accordance with International Accounting Standard 34
as adopted by the European Union and the Disclosure and
Transparency Rules of the United Kingdom's Financial Services
Authority.
PricewaterhouseCoopers LLP Chartered Accountants
13 December 2010 London
Notes:
a. The maintenance and integrity of the Carpetright plc website
is the responsibility of the Directors; the work carried out by the
auditors does not involve consideration of these matters and,
accordingly, the auditors accept no responsibility for any changes
that may have occurred to the financial statements since they were
initially presented on the website.
b. Legislation in the United Kingdom governing the preparation
and dissemination of financial statements may differ from
legislation in other jurisdictions.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR TJBLTMBBBBRM
Carpetright (LSE:CPR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Carpetright (LSE:CPR)
Historical Stock Chart
From Jul 2023 to Jul 2024
