Carpetright PLC Interim Management Statement (6288Y)
January 28 2014 - 2:00AM
UK Regulatory
TIDMCPR
RNS Number : 6288Y
Carpetright PLC
28 January 2014
28 January 2014
Carpetright plc
Interim Management Statement
Carpetright plc, Europe's leading specialist carpet and floor
coverings retailer, today announces its trading update for the 13
weeks ended 25 January 2014.
Summary
-- Whilst our third quarter result reflects an improved UK
performance, a further deterioration in trading in the Netherlands
means that we now expect our full year underlying pre-tax profit to
be below the lower end of current market expectations.
-- UK
o Like-for-like sales (note 2) in the UK increased by 1.9%.
Total sales increased by 0.6%.
o Store base decreased by one during the period to 473, of which
242 have now been modernised.
-- Rest of Europe
o In local currency terms, like-for-like sales in the Rest of
Europe (Netherlands, Belgium and the Republic of Ireland) decreased
by 7.7%. Total sales declined by 7.5%. After the impact of currency
movements this translates to a 6.3% decrease in total sales.
o Belgium and the Republic of Ireland are in line with our
expectations.
Lord Harris, Executive Chairman, said:
"Tough trading conditions persisted in the UK in the third
quarter of our financial year but our self-help measures have
enabled us to grow sales within a difficult market. We have noted
in recent announcements that the like-for-like sales performance in
the UK has been volatile, and this remains the case. That said, UK
profit is in line with our expectations and is expected to be ahead
of last year for the year as a whole. Excluding the expected
decrease in sales from our wholesale business, the core retail
business would have reported a like-for-like increase of 2.5%,
against a strong comparative of 4.7% growth last year.
"Trading in our Rest of Europe business continues to be
dominated by the extremely difficult economic conditions in the
Netherlands. As a result we now expect this business unit to be
loss making for this financial year, although we still expect it to
remain cash generative.
"In view of the market conditions, predicting the final outcome
for the year with any accuracy is difficult and the result for the
year will depend on our performance in the final quarter. In the
UK, the pace of the recovery remains uncertain in the face of
continuing sales volatility but we are confident that our self-help
measures have further potential. However, with a further weakening
of the market in the Netherlands, we now expect underlying pre-tax
profits for the full year will be below the lower end of the
current range of market expectations."
The Group will issue a pre-close update on Tuesday, 22 April
2014 and will report its preliminary results for the financial year
ending 26 April 2014 on Tuesday, 24 June 2014.
Analyst conference call
Lord Harris will host a conference call for analysts at 08:30
GMT today.
The dial in number is 020 3003 2666 with the passcode
2189361.
Thereafter, for further enquiries please contact:
Carpetright plc
Lord Harris, Executive Chairman
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. Like-for-like sales calculated as this year's net sales
compared to 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.
3. There have been no significant changes to the Group's financial position during the period.
Appendix 1: Group Sales
Current Financial Year Previous Financial
Year
----------------------------------------------- ----------------------------------------- --------------------------
13 weeks 39 weeks 26 weeks 13 weeks 39 weeks
to to to to to
25 January 25 January 26 October 26 January 26 January
2014 2014 2013 2013 2013
(previously (previously (previously
reported) reported) reported)
----------------------------------------------- ------------ ------------ ------------- ------------ ------------
UK
* Total 0.6% (1.2%) (2.2%) 1.6% (0.5%)
1.9% 0.2% (0.8%) 3.2% 1.6%
* Like-for-like 2.5% 0.9% 0.0% 4.7% 3.8%
* Like-for-like excluding wholesale
Rest of Europe
* Total (in local currency) (7.5%) (8.6%) (8.4%) (11.2%) (10.1%)
* Like-for-like (in local currency) (7.7%) (8.5%) (8.6%) (11.5%) (10.6%)
* Total (in GBP) (6.3%) (3.8%) (2.4%) (15.9%) (17.3%)
----------------------------------------------- ------------ ------------ ------------- ------------ ------------
Group Sales (in GBP) (0.5%) (1.7%) (2.2%) (1.6%) (3.7%)
----------------------------------------------- ------------ ------------ ------------- ------------ ------------
Appendix 2: Store portfolio
Current Financial Year Previous Financial Year
------------------------------------ ------------------------------------
Store portfolio 25 January 26 October 26 January Year end
2014 2013 2013
(previously (previously 27 April 2013
reported) reported) (previously
reported)
----------------- ----------------- ----------------- -----------------
Stores Sq ft Stores Sq ft Stores Sq ft Stores Sq ft
------------------ ------- -------- ------- -------- ------- -------- ------- --------
UK
Standalone 457 4045 458 4,071 460 4,117 462 4,124
Concessions 16 29 16 29 16 29 16 29
Total 473 4,074 474 4,100 476 4,146 478 4,153
------------------ ------- -------- ------- -------- ------- -------- ------- --------
Europe
Republic of
Ireland 21 155 21 155 21 154 21 155
Netherlands 95 1,104 95 1,104 95 1,105 95 1,104
Belgium 26 307 26 307 26 307 26 307
Total 142 1,566 142 1,566 142 1,566 142 1,566
------------------ ------- -------- ------- -------- ------- -------- ------- --------
Total Group 615 5,640 616 5,666 618 5,712 620 5,719
------------------ ------- -------- ------- -------- ------- -------- ------- --------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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