Skip to main navigation or content
You are here:
The continued slump in consumer spending and the housing markets have kept revenues under pressure at Carpetright. Chairman and chief executive Lord Harris warns that he does not expect a return to "more normal trading levels" for at least 12 months.
Advertising
Revenues in the UK and Republic of Ireland have fallen 13.5 per cent on a like-for-like basis to £394m, although the Sleepright acquisition - made last December - added 1.5 per cent to sales.
Trading in Europe seems to have fared slightly better, with sales in the Netherlands and Belgium up 10 per cent at constant currencies and revenues in Poland rising to £3m from £2.1m a year before. Trading is, however, expected to remain challenging in these regions.
Meanwhile, the final dividend has been slashed from 30p to just 4p. Lord Harris asserts that this is to allow the group to retain some "financial flexibility" to respond to any market opportunities that arise through the downturn. He adds that dividends will return to a greater level when a sustained recovery is evident.
Analyst John Stevenson of KBC Peel Hunt is expecting 2010 pre-tax profits of £24.9m, giving EPS of 25.9p (£17.2m and 18.2p in 2009).
CARPETRIGHT (CPR) |
||||
|---|---|---|---|---|
| ORD PRICE: | 562p | MARKET VALUE: | £379m | |
| TOUCH: | 562-563p | 12-MONTH HIGH: | 722p | LOW: 342p |
| DIVIDEND YIELD: | 1.4% | PE RATIO: | 32 | |
| NET ASSET VALUE: | 100p* | NET DEBT: | 144% | |
| Year to 2 May | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2005 | 463 | 72.5 | 71.0 | 47.0 |
| 2006 | 451 | 64.2 | 65.0 | 49.0 |
| 2007 | 476 | 67.0 | 68.2 | 50.0 |
| 2008 ** | 522 | 59.5 | 63.2 | 52.0 |
| 2009 | 483 | 16.7 | 17.6 | 8.00 |
| % change | -7 | -72 | -72 | -85 |
Ex-div: 9 Sep Payment: 25 Sep *Includes intangible assets of £71m, or 106p a share **For the 53-week period to 3 May |
||||
More analysis of company results
Shares in Carpetright are up 3 per cent since we suggested selling them (543p, 29 April 2009) and the group should benefit from the failure of rival retailers. But with trading conditions still under pressure and not expected to ease for at least a year, things are likely to get worse before they get any better. Sell.
Celebrate our 150th anniversary with fantastic savings on a joint magazine and IC Advantage subscription.
Free access to financial data, charts, portfolio tools and more - registration is quick, secure and free!
Profit from IC share tips; discover the benefits of IC Advantage and sign up for a free trial.
Use the links below to find key market data and portfolio functionality. Registration (free) may be required for some services.
© The Financial Times Limited 2010. All rights reserved. "Investors Chronicle", "FT" and "Financial Times" are trademarks of The Financial Times Limited. No part of these web pages may be reproduced or transmitted to or stored in any other website or other form of electronic retrieval system, without prior permission in writing from the editor.
Warning: Do remember, particularly if you are new to stock market investment that the prices of shares and other investments can fall sharply. You may not get back the money you originally invested. The material here is for general information only and is not intended to be relied upon for individual investment decisions. Take independent advice before making such decisions. This site is aimed at UK residents only. To read more please see our Important Warning
-IC-2.1.3g-prod - 17/03/2010 18:13:09 - ben.wheeler
