In its results for the year ended 28th April 2018, Carpetright has posted a decline of UK LFL sales of -3.6% (against -0.5% in 2017), with a decrease of -7.8% in H2 offsetting the increase of +0.7% reported for H1.
Overall group revenue decreased by -3.0% to £443.8m, with underlying losses before tax in line with expectations, at -£8.7m – reflecting the impact of addressing the company's legacy property issues, the company reports.
Chief executive Wilf Walsh comments: “After a difficult trading year impacted by reduced consumer spend, increased competition and the legacy of an unsustainable, over-rented store portfolio, the CVA and recapitalisation offers us the chance to rebuild Carpetright, which remains the clear market leader in floorcoverings, with outstanding consumer brand awareness. This will be a transitional year for the group as we work through our recovery plan.”
Carpetright now occupies a net debt position of £53.0m (up from £9.8m in 2017), reflecting its "decline in operating performance and tightening of credit terms by suppliers responding to adverse publicity surrounding the group’s restructuring".
Carpetright's CVA will see 81 UK stores close by the end of September. The business reports that it has been a difficult first eight weeks for its new FY, impacted by warm weather and stock shortages as some suppliers withdrew their support – but that this situation had improved following the approval of the CVA and completion of recapitalisation for £65m of equity financing.