United Carpets Reports 'Encouraging' Performance Since Reopening Stores

United Carpets Group plc (LSE: UCG), the third largest chain of specialist retail carpet and floor covering stores in the UK, today announces its interim results for the year ended 31 March 2020. 

As announced on 25 June 2020, the Group has changed its accounting reference date to 30 September, extending the current accounting period from 31 March 2020 to 30 September 2020. These unaudited, second interim results are for the year ended 31 March 2020 and all comparisons are against the audited results for the year ended 31 March 2019. Audited results for the 18-month period ending 30 September 2020 will be published by no later than 31 March 2021. 

Key points 

·      Revenue for the year increased by 19.2% to £28.58m (2019: £23.98m) 

·      Like for like sales* decreased by 4.3%. This represented a 1.6% decrease excluding those weeks affected by lockdown 

·      Loss before tax and IFRS 16 adjustments** of £445,000 (2019: profit before tax of £595,000) was after charging £597,000 of provisions related to the Covid-19 pandemic 

·      Losses per share before IFRS 16 adjustments were 0.45p (2019: earnings per share of 0.51p) 

·      Loss before tax after IFRS 16 adjustments was £745,000 (2019 restated: profit before tax of £276,000)

·      Losses per share after IFRS 16 adjustments were 0.75p (2019 restated: earnings per share of 0.20p) 

·      Net funds*** were £1.45m (2019: £2.10m) 

·      Like for like sales* for the 9 weeks since re-opening have been positive and encouraging 

   * Like for like sales are defined in the financial review

 ** IFRS 16 adjustments are explained in note 1

*** Net funds comprise cash and cash equivalents less borrowings - hire purchase liabilities

Paul Eyre, Chief Executive, said: 

"Excluding the impact from the Covid-19 pandemic, trading for the year was in line with the update the Company provided in February 2020. Whilst total sales were up 19%, this was as a result of the Group's new instalment payment channel. Like for like sales from the store network, however, decreased by 4.3%, which was a 1.6% decrease excluding those weeks affected by lockdown. This reflected a lacklustre retail environment and, combined with higher start up and servicing costs associated with the instalment payment channel, meant profitability was reduced for the year. Like all businesses, our focus since the year end has been to manage the Group during the current Covid-19 crisis. We reported the opening of the store network from 23 May and it is pleasing to confirm a positive like for like sales performance across our store network for the 9 weeks since then. We recognise that it is still early days, but believe it to be encouraging."        

Source : United Carpets

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