Carpetright (CPR)

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24-Oct-2017 – 180p – £122.1m

Trading Update For The 25 Weeks Ending 21 October 2017 – Basically, Flat Revenues and H1 Profit expected to be below that of the prior year. Expecting a significantly stronger H2 within the current range of market expectations. I am reading, H1 lower than the lower end and H2 likely to be at thelower end, of expectations.

Recent update seems like a bit of a Profit Warning to me – It certainly rings “caution”.

12-Dec-2017 – 185p – £120.6m – PER 9.43

Interim Results For The 26 Weeks To 28 October 2017 – A mixed headline “Significant progress made in core UK flooring business – first half performance impacted by short term UK beds clearance and losses in Rest of Europe. Current trade encouraging but taking a more cautious view of second half prospects”. And this also seems mixed – Revenue up 2.6% to £228.1m (H1 FY17: £222.3m), statutory PBT £0.3m (H1 FY17: £4.1m), Net debt £22.8m (H1 FY17: net cash £0.4m) reflecting the continued investment in the store refurbishment programme. And “Underlying pre-tax profits for the second half of the year expected towards the bottom end of the current range of market expectations”.

Remains on my Avoid list.

19-Jan-2018 – 164.5p – £111.7m – PER 9.31

Trading Update For The 11 Weeks To End 13-Jan-2018 – This doesn’t look good. Trading in the important post-Christmas period has been significantly behind expectations, Group sales down2.3%, sharp deterioration in UK trade has had a significant impact on profitability and our outlook for the reminder of the year – Revised full year profit guidance in the range of £2.0m to £6.0m.

With Stockopedia currently stating 2018 Net Profit of £10.8m this looks like a HUGE miss. It remains on my Avoid list.

Subsequent Note: Read a N+1 Singer Broker note that there’s £60m assets (property freehold).

11-Dec-2018 – 16.35p – £50.1m – PER n/a

Interim Results For The 26 Weeks To 27th October 2018 – On track to deliver £19m in cost savings, average store lease reduced to 3.5 years (52% having a 2 year break clause). Revenue down 15.7%, Loss up from -£0.6m to -£11.7m.

Hope those cost savings kick in soon, remains on my Avoid list for now. Worth keeping a note here that N+1 Singer state that there’s £60m assets (property freehold) here.

25-Apr-2019 – 15p – £47m – PER 12.2

Trading Update For The 12 Weeks To End 20 April 2019 – In-line and on target to hit the £19m annualised savings.

Coming off my Avoid list, underpinned by £60m in assets (property freehold) could now be potential if a corner has been turned.

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