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(UCG.L) United Carpets Group PLC Buy/Sell
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| Date/Time | Headline | Source |
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| 17-12-09 | RNS |
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RNS Number : 2224E United Carpets Group plc 17 December 2009 UNITED CARPETS GROUP plc Interim results for the period ended 30 September 2009 United Carpets Group plc ("the Group" or "the Company" or "United Carpets"), the second largest chain of specialist retail carpet and floor covering stores in the UK, today announces its interim results for the period ended 30 September 2009. Highlights
· Revenue increased by 11.4% to £14.06m (2008: £12.62m)
· Adjusted operating profit* increased by 12.2% to £651,000 (2008: £580,000) · Profit before tax increased by 10.2% to £702,000 (2008: £637,000)
Paul Eyre, Chief Executive, said: 'After a relatively slow start to the year, the second quarter over the summer period was very positive resulting in like for like sales up 2.5% for the period, an excellent result given the wider economic uncertainty and strong comparatives. Our focus on countering consumer caution by delivering excellent value for money has been effective. Equally pleasing has been the successful conversion of a significant number of corporate stores to franchisees so that today we have 10 corporate stores compared to 23 at the outset of the financial year. Trading has continued to be positive since the period end, giving the Board sufficient confidence to re-instate the interim dividend."
Enquiries:
United Carpets Group plc
Ian Bowness, Finance Director
Cardew Group
Jamie Milton
Seymour Pierce
Chairman's statement I am pleased to announce the Group's interim results for the six months ended 30 September 2009. In what has been a very difficult economic environment the Group has delivered a positive first half performance with revenues increasing to £14.06m and profit before tax increasing to £0.7m. Total store numbers have remained constant during this period at 80, with management focus on franchising the majority of our corporate stores. As a result we now have 10 corporate stores compared to 23 at the start of the financial year. We have also sought to take advantage of our market position by emphasising the excellent value for money we offer in comparison to the wider market and the success of this approach has been reflected in the Group's financial performance. Financial review Revenue, which as in previous years includes marketing and rental costs incurred by the Group and recharged to franchisees, increased by 11.4% to £14.06m (2008: £12.62m). Franchising revenue increased by 20.0%, broadly in line with the increase in average franchisee numbers; Flooring revenue reduced by 4.7%, as corporate stores were franchised; Beds revenue increased 25.9%, reflecting strong like for like growth and Trade sales increased by 18.3%, as the service to the network continued to develop. Network sales across the Group, including the value of retail sales by our franchisees (to give a measure of the Group's turnover on a more comparable basis to a conventional retailer), increased by 11.8% to £34.51m (2008: £30.88). Like for like sales across the whole of the network were up 2.5% compared to the previous period. Given United Carpets' franchise structure, like for like sales are not the best measure of the Group's financial performance but they do provide a good steer on the overall trading performance. Within the like for like sales performance, the core floor coverings business achieved a 1.6% like for like increase on the previous year whilst bed like for like sales increased strongly by 11.2%. Although only approximately 12% of overall sales, this was an encouraging contribution from the Beds division. Gross margin of 65.1% compares to 65.4% in the same period last year and 64.0% for the full year to 31 March 2009. Changes in the proportion of Group revenue from Franchising compared to that from Flooring, Beds and Trade Sales impacts on gross margin and the improvement in comparison to the year ended 31 March 2009 reflects the increasing proportion of total revenue from Franchising as corporate stores have been successfully franchised. Distribution costs include staff costs at the corporate stores and whilst these have reduced in line with Flooring turnover, this has been offset by a strengthening of the Beds field support team resulting in an overall increase of 9.5% in distribution costs. Administrative expenses include store occupancy costs and marketing expenditure and the increase of 10.3% in comparison to the same period in the prior year principally reflects the increase in average store numbers between the two periods. Overheads (being distribution costs and administrative expenses excluding exceptional items) as a proportion of sales were 60.9% (2008: 61.2%). Profit before tax increased by 10.2% to £702,000 (2008: £637,000). Earnings per share were 0.56p (2008: 0.51p). The balance sheet continues to be robust with no borrowings, other than a small number of minor hire purchase contracts, and cash balances of £1.4m (2008: £0.9m). Trade and other receivables have increased as a result of the higher number of corporate stores franchised during the period. Dividend Last year, the Board decided in view of the challenging environment to withhold the interim dividend and preserve the financial strength of the Company. Since then, whilst the trading environment remains uncertain, the Company has performed well and the Board is pleased to announce the re-instatement of an interim dividend of 0.25p per share. The dividend will be paid on 28 January 2010 to those shareholders whose names are on the register on 8 January 2010. Operations review As a franchise business we believe our model has natural advantages over the more traditional retailer. Each of our franchised stores is run by an owner-manager which means they are naturally more incentivised to succeed whilst still benefitting from the advantages of being part of a larger branded network. This is an important factor at a time when customers are feeling cautious as a result of the economic environment and job security is lower than it has been historically. To counter the current market environment, the Group has focused on highlighting the excellent value for money our products represent in comparison to the wider market and as a result we believe we have benefitted from customers seeking to find the best deals available. Like for like sales across the whole of the network were an encouraging 2.5% up on the previous year. The majority of Group revenues are derived from the sale of floor coverings, predominantly carpet, laminate and vinyl flooring through franchised stores and the Group's own corporate stores. Advertising is a key part of the Group's marketing strategy, aimed at increasing brand awareness and promoting individual offers underlining our value for money ranges. In the period under review, we continued to carry out television advertising in targeted areas where we have sufficient critical mass to make it economic. We also use radio, print and direct advertising strategies to increase brand awareness and drive sales across the Group. Advertising strategies are devised for individual stores, regionally and across the whole network of stores. Allied Carpets, which was the second largest operator in the market, closed the majority of its stores during August 2009 and those of our stores which trade in close proximity to a former Allied Carpets store have seen a modest uplift in sales despite the customer perception that Allied Carpets catered for the more expensive sector of the market. The Group ended the period under review with 80 branded stores across Northern and Central England. With the exception of 17 corporate stores, these were all franchises operating under United Carpets' bespoke franchise model. Franchising In 2008, the Company expanded rapidly adding 15 new stores many of which opened as corporate stores as there was no suitable franchisee available at the time. At the outset of this financial year, a key focus has been to franchise the majority of our corporate stores, and we have made excellent progress. We began the year with 57 franchised stores. During the period we franchised 9 stores and converted 3 stores back into corporate stores due to underperformance and ended the period with 63 franchised stores. We have not had to close any stores which we believe reflects the Group's increasing efficiency in identifying the right franchisees and addressing any issues that arise early in the process. We have in certain circumstances switched franchisees from one franchised store to another with good effect. Since the period end we have franchised a further 8 corporate stores and successfully opened a new franchised store in Peterborough giving us 72 franchised stores currently. In addition we have in place an excellent pipeline of potential franchisees. Flooring We started the period with 23 corporate stores, 3 stores were taken back into the corporate arm and 9 were successfully franchised during the half to give 17 corporate stores at the period end. Since then one new corporate store has successfully opened in Halifax and a further 8 corporate stores have been re-franchised to give 10 corporate stores currently. We aim to retain three corporate stores as core stores, to enable training and product development with the remainder expected to be franchised during the next 12 months. On a like for like basis floor coverings sales have continued to be positive. As part of an ongoing process we have expanded our carpet ranges sourced centrally which enable us to provide highly competitive pricing. Beds We are very pleased to report that the Beds division is now beginning to fulfil its potential with like for like sales up 11.2% during the period. Sales of beds are a natural addition to flooring and we are now seeing the opportunity for related sales being pursued more effectively by franchisees across the store network. Over the last twelve months, the Group has introduced new ranges, simplified the sales process and improved customer service and the benefit of these actions is now becoming apparent. Trade sales The Group's in-house cutting operation for flooring continues to improve in efficiency and service and sales to the franchised network increased by 18.3% in the period. The service to stores has been further enhanced by the introduction of 7 day a week coverage which is expected to bring further benefits in the future. People The Group now directly and indirectly employs over 450 people, all of whom have contributed to the Group's positive financial performance. The Board would like to take this opportunity to thank everyone associated with the Company for their support and dedication. We look forward to achieving a good result for this financial year and continuing to work together in the future. Outlook Despite the concerns over the economic environment the business is in a good position and customers who perhaps delayed purchases now appear more willing to consider buying. The relatively stable levels of income for those in employment and a relatively stagnant housing market are leading many people to opt to invest in their existing homes as opposed to moving. Our trading performance has been solid, generating positive like for like sales and in the 10 weeks since the period end like for like sales have increased by 6.4%. We are delighted with our progress on franchising corporate stores and whilst this process will continue, we also remain committed to expanding the business. There remains significant scope to infill new stores within our target regions and utilizing our franchise model we are well placed to continue to expand our network at a suitable pace. Peter Cowgill Chairman
INDEPENDENT REVIEW REPORT TO UNITED CARPETS GROUP PLC Introduction We have reviewed the accompanying condensed consolidated interim balance sheet of United Carpets Group plc as at 30 September 2009 and the related condensed consolidated interim income statement, condensed consolidated statement of changes in equity and condensed consolidated interim statement of cash flows for the six month period then ended. Management is responsible for the preparation and fair presentation of this interim financial information in accordance with applicable law. Our responsibility is to express a conclusion on this interim financial information based on our review. Scope of review We conducted our review in accordance with International Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, 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 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 accompanying interim financial information is not prepared, in all material respects, in accordance with applicable law. Tenon Audit Limited Statutory Auditor Nottingham 17 December 2009
For the six months ended 30 September 2009
2009 2008 2009
Profit on disposal of
and equipment
provision against onerous leases
financing costs
All amounts are attributable to the equity holders of the parent, and all arise from continuing operations. No amounts were recognised directly in equity, and therefore no separate statement of other comprehensive income has been presented.
As at 30 September 2009
Non-current assets
equipment Current assets
receivables
Equity
Non-current liabilities
borrowings
Current liabilities
borrowings
Condensed consolidated statement of changes in equity
For the six months ended 30 September 2009
Condensed consolidated interim statement of cash flows
For the six months ended 30 September 2009
Cash flows from operating
activities
activities
Cash flows from investing
activities
property, plant and equipment
and equipment
activities
Cash flows from financing
activities
liabilities
activities
and cash equivalents
start of period
1. Basis of preparation United Carpets Group plc (the "Company") is a company domiciled in the United Kingdom. The condensed consolidated interim financial statements of the Company for the six months ended 30 September 2009 comprise the Company and its subsidiary undertakings (together referred to as the "Group"). The Group financial statements for the year ended 31 March 2009 were approved by the Board of Directors on 24 September 2009 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 under section 237 of the Companies Act 1985. These condensed consolidated interim financial statements do not comprise statutory accounts within the meaning of section 240 of the Companies Act 1985. These condensed consolidated interim financial statements for the period ended 30 September 2009 are unaudited but have been reviewed by the auditors and their Independent Review Report is included with these statements. The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 March 2009. 2. Segment reporting Segment information is presented in the condensed consolidated interim financial statements in respect of the Group's business segments, which are the primary basis of segment reporting. The business segment reporting format reflects the Group's management and internal reporting structure. Inter-segment pricing is determined on an arm's length basis. Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Business segments
The Group is comprised of the following main business segments:
For the six months ended 30 September 2009
2009 2008 2009 2008 2009 2008 2009 2008 2009 2008
3. Income taxes The tax charge accrued in these interim results reflects an estimated tax rate of 35% (30 September 2008: 35%) as a result of expenses not deductible for tax purposes and non-qualifying depreciation. 4. Property, plant and equipment Acquisitions and disposals During the six months ended 30 September 2009, the Group acquired assets with a cost of £407,000 (six months ended 30 September 2008: £1,143,000). Assets with a net book value of £18,000 were disposed of during the six months ended 30 September 2009 (six months ended 30 September 2008: £1,000), resulting in a gain on disposal of £Nil (six months ended 30 September 2008: £3,000). Capital commitments There were no capital commitments contracted for but not provided for at the period end (30 September 2008: £Nil). 5. Earnings per share Basic earnings per share The calculation of basic earnings per share for the six months ended 30 September 2009 was based on the profit attributable to ordinary shareholders of £456,000 (six months ended 30 September 2008: £414,000, year ended 31 March 2009: £324,000) and a weighted average number of ordinary shares outstanding during the six months ended 30 September 2009 of 81,400,000 (six months ended 30 September 2008: 81,400,000, year ended 31 March 2009: 81,400,000). Diluted earnings per share There are no share options which give rise to a dilution at 30 September 2009 (30 September 2008: 1,428,571, March 2009: Nil). The calculation of diluted earnings per share for the six months ended 30 September 2009 was based on profit attributable to ordinary shareholders of £456,000 (six months ended 30 September 2008: £414,000, year ended 31 March 2009 £324,000) and a weighted average number of ordinary shares outstanding during the six months ended 30 September 2009 of 81,400,000 (six months ended 30 September 2008: 81,549,005, year ended 31 March 2009: 81,400,000), calculated as follows:
2009 2008 2009
shares at period end
(dilutive)
shares (diluted) 6. Employee benefits Pension plans The Group provides employee benefits under defined contribution pension plans, the details of which are disclosed in the most recent annual financial statements. Expense recognised in the consolidated interim income statement The expense recognised in the consolidated interim income statement consists of contributions made to the defined contribution scheme. For the six months ended 30 September 2009, the Group recognised expense of £42,000 (six months ended 30 September 2008: £44,000, year ended 31 March 2009: £107,000).
7. Financial instruments Interest-bearing loans and borrowings In the opinion of the directors there is no significant difference between the fair value of hire purchase contracts and the carrying value in the financial statements. Trade and other receivables/payables The carrying value is deemed to reflect the fair value for all trade and other receivables/payables. 8. Cash flows from operating activities
2009
plant and equipment
and equipment
property, plant and equipment
inventories
and other receivables
leases
payables
This information is provided by RNS The company news service from the London Stock Exchange END
IR GUGGWPUPBGPQ More |
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| 29-10-09 | AFX UK Focus |
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LONDON, Oct 29 (Reuters) - United Carpets Group Plc:
((London Equities Newsroom; +44 20 7542 7717)) (For more news, please click here)
COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. More |
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| 29-10-09 | RNS |
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RNS Number : 5747B United Carpets Group plc 29 October 2009
United Carpets Group plc ('United Carpets' or 'the Group') AGM Statement The following statement was made at the Annual General Meeting of United Carpets held today at 10.00am. 'During the 26 weeks to 30 September 2009, the Group performed well given the prevailing market conditions. The first quarter was more challenging but since the beginning of July sales have improved steadily, producing a positive like for like result, up by 2.5% for the period. During a tough trading environment, we have sought to counter consumer caution by promoting the excellent value for money which we offer and invested more time in staff training, with particular focus on developing customer service skills and deepening understanding of the extensive product range we offer. The results of those ongoing efforts, together with some early indications of improving confidence in the economy and a modest impact from the closure of many of the Allied Carpets stores, provide reasonable grounds for cautious optimism for the remainder of the year. The Group has made good progress in increasing the number of franchised stores, with the number of corporate stores reducing from 23 to 17 over the period. We have in place an excellent pipeline of potential franchisees many of whom have already made a significant financial commitment to join the Group. During the period, store numbers remained unchanged at 80 and, while the immediate focus continues to be the successful conversion of corporate stores to franchised stores, new store openings will continue but at a lower rate to the previous year. Building on the momentum begun in the previous year, bed sales have continued to increase, up by 11.2% on a like for like basis during the period. Sales of beds still only represent approximately 10% of total sales and we believe there is significant scope for this to increase. Over the last twelve months, the Group has introduced new ranges, simplified the sales and delivery process and improved customer service and the benefit of these actions is now becoming apparent. With the majority of stores operating under the Group's franchise model, the business continues to benefit from the entrepreneurial drive and motivation of the individual store owners. This, together with our focus on the value sector of the market, means the Group remains well positioned to combat the current market environment. Trading since 30 September 2009, has continued positively. The Group has robust cash balances and looks forward to further developing the business in the second half of the financial year. We will report our interim results for the 6 months ended 30 September 2009 in December 2009.' Enquiries:
Paul Eyre, Chief Executive Ian Bowness, Finance Director
Tim Robertson Jamie Milton Seymour Pierce
<HR>--------------------------------------- This information is provided by RNS The company news service from the London Stock Exchange END
AGMFEISAUSUSEIS More |
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| 29-09-09 | RNS |
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RNS Number : 8720Z United Carpets Group plc 29 September 2009 United Carpets Group plc (the "Company") Report and Accounts and Notice of AGM The Company announces that its annual report and accounts for the year ended 31 March 2009 has been sent to shareholders and is available on the Company's website, www.unitedcarpetsandbeds.net. The report and accounts contain a notice of the Company's annual general meeting to be held at Moorhead House, Moorhead Way, Bramley, Rotherham, S66 1YY on Thursday 29 October 2009 at 10.00am.
ENDS <HR>--------------------------------------- This information is provided by RNS The company news service from the London Stock Exchange END
ACSDGGZLFLDGLZM More |
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| 17-12-09 |
1 |
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Solid results and Interim Divi back!Happy to continue holding this share.
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| 29-10-09 | ||||
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I think Carpetright have also noted an improving market.If this continues the shares represent decent long term value.
Incidently for those investors who live outside United Carpets main areas the company continues to advertise quite extensively on Television. |
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| 29-10-09 |
BUY
good news
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The Group has made good progress in increasing the number of franchised stores, with the number of corporate stores reducing from 23 to 17 over the period. We have in place an excellent pipeline of potential franchisees many of whom have already made a significant financial commitment to join the Group. During the period, store numbers remained unchanged at 80 and, while the immediate focus continues to be the successful conversion of corporate stores to franchised stores, new store openings will continue but at a lower rate to the previous year.
Building on the momentum begun in the previous year, bed sales have continued to increase, up by 11.2% on a like for like basis during the period. Sales of beds still only represent approximately 10% of total sales and we believe there is significant scope for this to increase. Over the last twelve months, the Group has introduced new ranges, simplified the sales and delivery process and improved customer service and the benefit of these actions is now becoming apparent. With the majority of stores operating under the Group's franchise model, the business continues to benefit from the entrepreneurial drive and motivation of the individual store owners. This, together with our focus on the value sector of the market, means the Group remains well positioned to combat the current market environment. Trading since 30 September 2009, has continued positively. The Group has robust cash balances and looks forward to further developing the business in the second half of the financial year. We will report our interim results for the 6 months ended 30 September 2009 in December 2009.' Enquiries: United Carpets 01709 732 666 Paul Eyre, Chief Executive Ian Bowness, Finance Director Cardew Group 020 7930 0777 Tim Robertson Jamie Milton Seymour Pierce Jonathan Wright/Nicola Marrin 020 7107 8000 -------------------------------------------------------------------------------- This information is provided by RNS The company news service from the London Stock Exchange END AGMFEISAUSUSEIS London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply. |
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| 06-10-09 | ||||
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Looks like you are being proved wrong.
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They have not been approved or issued by Interactive Investor Trading Limited.
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