TIDMCPR
RNS Number : 5550M
Carpetright PLC
30 April 2018
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN
PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM AUSTRALIA, CANADA,
JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL
TO DISTRIBUTE THIS ANNOUNCEMENT
This announcement contains inside information as defined in EU
Regulation No. 596/2014 and is in accordance with the Company's
obligations under Article 17 of that Regulation.
LEI: 213800GO32BSNNHXID90
Carpetright plc
("Carpetright" or the "Company" or the "Group")
Result of CVA Shareholders' Meeting
Trading Update
and
Result of Borrowing Limits Shareholders' Meeting
Result of CVA Shareholders' Meeting
Carpetright announced on 26 April 2018 that the CVA Proposal
proposed by the directors of the Company had been approved by the
requisite majority of creditors of the Company at the Creditors'
Meeting held on that date.
Further to that announcement, the Company is pleased to announce
that the CVA Proposal has now been approved by the requisite
majority of the shareholders of the Company present in person or by
proxy at the CVA Shareholders' Meeting held at 10.00 a.m.
today.
The Company continues to trade under the control of the
directors, operating as a going concern. The Company is not in and
will not be in administration as a result of the approval of the
CVA Proposal.
As stated in the CVA Announcement, implementation of the CVA
will be conditional upon interim funding of up to GBP15 million and
a successful equity capital raising. The Company expects to
announce shortly an update in respect of the interim funding and
also still expects to launch the equity capital raising on or
around 18 May 2018. As previously described in the Company's CVA
announcement on 12 April 2018 (the "CVA Announcement"), the equity
capital raising is conditional upon there having been no successful
challenge to the CVA Proposal.
Commenting on the approval of the CVA Proposal, Wilf Walsh, CEO,
said:
"The CVA Proposal will enable us to take the tough but necessary
actions needed to restore our profitability. Having now received
approval from both shareholders and creditors we will press ahead
with our plans for the proposed equity financing to recapitalise
the business and enable Carpetright to address the competitive
threat from a position of strength."
Trading Update
Since the Company last updated the market on 12 April 2018,
trading conditions have remained difficult, as expected, in both
our UK and Rest of Europe ("RoE") businesses.
In the UK, continued weakness in consumer confidence, coupled
with some inevitable disruption to trade arising from the publicity
associated with the Group's ongoing restructuring activities,
resulted in like-for-like sales falling by 10.5% in the final
quarter of our financial year. This performance, combined with that
of the previous nine months, will result in full year like-for-like
sales being down by 3.6%. However, the refurbished stores continue
to outperform the uninvested estate, thereby giving us confidence
to continue with the store modernisation strategy following the
forthcoming equity capital fundraising. Like-for-like sales in RoE
fell by 8.3% in the final quarter against a similar trading
background to that experienced in the UK, with the full year figure
being an increase of 1.1%.
As a result of the above, the Group anticipates reporting an
underlying pre-tax loss for the year ending 28 April 2018 in the
region of GBP7m to GBP9m.
Carpetright expects to report its final results for the 2018
financial year on 26 June 2018.
Result of Borrowing Limits Shareholders' Meeting
Carpetright announced on 12 April 2018 that it had sent a
circular to shareholders convening a general meeting on 30 April
2018 ("General Meeting") to approve a ratification of a technical
breach in respect of its borrowing limits ("Resolution 1") and an
amendment to the Company's articles of association to remove the
current restriction on borrowings ("Resolution 2") (together the
"Resolutions").
The Company is pleased to announce that the Resolutions have now
been approved by the requisite majority of the shareholders of the
Company present at the shareholder meeting held at 9.00 a.m.
today.
The proxy position in respect of the Resolutions will shortly be
posted on the Company's website at www.carpetright.plc.uk.
Documents Available for Inspection
In accordance with Listing Rule 9.6.2, a copy of the resolutions
passed at the CVA Shareholders' Meeting and the General Meeting,
together with a copy of the amended Articles of Association of the
Company will be uploaded to the National Storage Mechanism and will
shortly be available for inspection at
www.morningstar.co.uk/uk/nsm.
Other than where defined, capitalised terms used in the
announcement have the meanings given to them in the CVA
Announcement or the CVA Proposal Document made available to
shareholders on 12 April 2018.
Enquiries:
Carpetright plc
Wilf Walsh, Chief Executive
Neil Page, Chief Financial Officer 01708 802000
Peel Hunt LLP (Sponsor and joint broker)
Dan Webster
George Sellar
Nicole McDougall 020 7418 8900
Deutsche Bank AG (Joint broker)
Simon Hollingsworth
Adam Miller 020 7545 8000
Citigate Dewe Rogerson (Financial PR)
Kevin Smith
Nick Hayns 020 7638 9571
Notes to editors
Carpetright plc is Europe's leading specialist floor coverings
and beds retailer. Since the first store was opened in 1988 the
business has developed both organically and through acquisition
within the UK and other European countries. The Group is organised
into two geographical regions, the UK and the Rest of Europe
(comprising The Netherlands, Belgium and the Republic of
Ireland).
This announcement does not constitute an offer to sell, or a
solicitation of offers to purchase or subscribe for, securities in
the United States. The securities referred to herein have not been,
and will not be, registered under the US Securities Act of 1933, as
amended (the "Securities Act"), and may not be offered, exercised
or sold in the United States absent registration or an applicable
exemption from registration under the Securities Act.
Peel Hunt LLP ("Peel Hunt") is authorised and regulated by the
Financial Conduct Authority (the "FCA") and is acting exclusively
for the Company and no one else in relation to the matters referred
to herein and is not, and will not be, responsible to anyone other
than the Company for providing the protections afforded to its
clients or for providing advice in relation to the contents of this
document or any other matter referred to herein.
Deutsche Bank AG, London Branch ("Deutsche Bank") is authorised
under German Banking Law (competent authority: European Central
Bank) and, in the United Kingdom, by the Prudential Regulation
Authority (the "PRA"). It is subject to supervision by the European
Central Bank and by BaFin, Germany's Federal Financial Supervisory
Authority, and is subject to limited regulation in the United
Kingdom by the PRA and the FCA. Details about the extent of its
authorisation and regulation by the PRA, and regulation by the FCA,
are available on request or from
www.db.com/en/content/eu_disclosures.html. Deutsche Bank is acting
exclusively for the Company and no one else in connection with the
matters referred to herein, and Deutsche Bank is not, and will not
be, responsible to anyone other than the Company for providing the
protections afforded to its clients or for providing advice in
relation to the contents of this document or any other matter
referred to herein.
No representation or warranty, express or implied, is or will be
made as to, or in relation to, and no responsibility or liability
is or will be accepted by Peel Hunt or Deutsche Bank or by any of
their respective affiliates or agents as to, or in relation to, the
accuracy or completeness of this announcement or any other written
or oral information made available to or publicly available to any
interested party or its advisers, and any liability therefore is
expressly disclaimed.
This information is provided by RNS
The company news service from the London Stock Exchange
END
ROMURUKRWRASORR
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April 30, 2018 05:23 ET (09:23 GMT)
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