Carpetright has announced its preliminary results for the 52 week trading period ended 26 April 2014.
Highlights for the UK:
• Like-for-like revenues declined by 0.2%. Excluding the expected contraction in sales from the wholesale business, the core retail business like-for-like grew by 0.5%.
• Gross profit percentage increased by 100 basis points to 62.5% (2013: 61.5%).
• 89 stores were refurbished in the period taking the total to 275 stores, representing 58% of the trading estate
• Store base reduced by a net six during the year to 472 stores.
Rest of Europe:
• Revenue in local currency, declined by 8.6% with like-for-like sales down by 8.6%.
• Difficult trading conditions in the Netherlands, where the floor coverings market remains weak.
• Number of stores remains unchanged at 142, having opened one and closed one store during the period.
Exceptional charges of £11.8m related to a combination of net losses on disposal of properties, onerous lease provisions and non-cash impairment of property assets.
Commenting on the results, Lord Harris, executive chairman, says: “While indicators point to an overall improvement in UK economic performance over the past twelve months, it has been a challenging time for the group with our markets remaining highly competitive and deal-driven. The performance of the business in the rest of Europe is principally a reflection of the continued difficult trading in the Netherlands. Whilst this business reported a loss for the year, it remained cash generative.
“Against this backdrop, we continue to take steps to develop the business. While we anticipate trading conditions will remain challenging, we expect these actions will underpin an improvement in Group performance in the new financial year.”
Board succession plans have been confirmed – Wilf Walsh is to join as CEO on 21 July 2014, at which point Lord Harris will become non-executive chairman. He will continue in this role until such time as a new chairman has been appointed and may remain on the board in a non-executive capacity following the appointment of a new chairman. Baroness Noakes is continuing to lead the search for a new chairman and will step down from the Board once this appointment has been made.
As part of this transition process, Baroness Noakes is stepping down from the Audit Committee, Remuneration Committee and Customer and Corporate Responsibility Committee with immediate effect. Andrew Page has been appointed to the Audit Committee with immediate effect.
In addition Alan Dickinson has notified the company that he will not seek re-election at the Annual General Meeting to be held on 4 September 2014 and will retire from the board on conclusion of the meeting.
