United Carpets Group plc Trading Statement (1244D)
October 26 2020 - 3:00AM
UK Regulatory
TIDMUCG
RNS Number : 1244D
United Carpets Group plc
26 October 2020
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF REGULATION (EU) 596/2014 (MAR). ON PUBLICATION OF
THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE
IN THE PUBLIC DOMAIN.
UNITED CARPETS GROUP plc
("the Group" or "the Company" or "United Carpets"),
Trading Update
United Carpets Group plc (AIM: UCG) the third largest chain of
specialist retail carpet and floor covering stores in the UK, is
pleased to announce the following trading update.
Since our 56 stores reopened on 22 May 2020 trading has been
robust with good demand from consumers increasing like for like
sales by 23.8% for the 19 weeks to 1 October 2020. This has meant
the Group has recovered much of the ground lost during lockdown,
when stores were closed for just over 8 weeks and virtually no
revenue was generated.
The Group continues to be in a strong financial position. At 30
September 2020, the Group had cash and cash equivalents amounting
to approximately GBP5.4 million, of which GBP2.0 million relates to
the Coronavirus Business Interruption Loan (CBIL), at nil cost for
12 months, recently secured to underpin the Group's finances and
provide additional liquidity. The Group's cash position has also
benefitted from the deferral of GBP1.1 million of payments,
principally under the Government's VAT and PAYE/NI support
measures. Accordingly, the Board believes that the Group has
sufficient capital to support the business through the current
challenges, and is well placed in the event of any further
restrictions due to the ongoing Covid-19 crisis. It should be noted
that a condition of the CBIL is that no dividends may be paid to
shareholders whilst any of the loan remains outstanding.
Paul Eyre, Chief Executive of United Carpets, said, "Since our
stores were allowed to re-open, we have been encouraged by a strong
period of trading. Customers appear to have been making up for the
purchases they would have made during lockdown, with an increased
focus on home improvements. Looking ahead, however, there are a
number of significant, potential headwinds facing our sector and
the UK economy in general:
- strong demand for home improvement products combined with
disrupted production due to Covid-19, have led to raw material
shortages and, consequently, increased input prices across our
sector;
- as activity historically increases in the run up to Christmas,
availability of carpet fitting capacity may act as a constraint on
achieving our full potential during that period;
- further Government restrictions on movements may deter consumer demand;
- a "no-deal" Brexit may result in additional import tariffs on
flooring products (the majority of which are imported from the
European Union) and may also result in adverse foreign exchange
fluctuations; and
- the longer-term impact from Covid-19 on unemployment and
economic recovery may lead to a challenging retail environment in
2021.
Nevertheless, we have a strong balance sheet, with appropriate
financing, and the Board therefore believes that the Group is in a
good position to navigate its way through the anticipated
challenges."
Enquiries:
United Carpets Group plc
Paul Eyre, Chief Executive
Ian Bowness, Finance Director 01709 732 666
N+1 Singer (NOMAD and Sole Broker)
Rick Thompson/Will Goode 020 7496 3000
Novella Communications Ltd
Tim Robertson
Fergus Young 020 3151 7008
The person responsible for arranging the release of this
information is Ian Bowness, Finance Director of the Group.
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END
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