RNS Number:4743K
Carpetright PLC
29 April 2003

29 April 2003

                                Carpetright plc
                         Post Easter Trading Statement


Carpetright, the UK's leading specialist carpet and floor coverings retailer,
today announces its post Easter trading update for the 25 weeks of the second
half to 26th April 2003 and an update on the progress of its recently acquired
European business.

The Group's full year results for the year to the 3rd May 2003 will be announced
on 1st July 2003.

Ongoing UK and Southern Ireland Operations

Total sales for the comparable 25 weeks to the 26th of April 2003 have increased
by 0.8% compared to last year. Like for like sales are down by 0.4% during the
same period. This result is below our previous forecasts as we have experienced
a slowdown in trade during the 4th quarter of our financial year.  However, the
business continues to see further improvement in gross margin which has
increased by 2.5 percentage points compared to last year. We expect to be
trading from two more stores (net) at the end of the second half than we were at
the beginning.

As a result, we anticipate the full year UK operating profit will be slightly
below the range of market expectations. We anticipate this shortfall will be
partially offset at the pre tax level by additional profits from the disposal of
stores during the half.

Acquired European Business

Following a full review of the European business we acquired at the end of
October 2002 we decided to accelerate the pace of change to strengthen the
business for the future. This has resulted in the following actions being taken

  * European distribution centre closed and head offices rationalised to one
    main office in Holland and a satellite support office in Belgium
  * A third of the ongoing estate now modernised, the balance of the stores
    having been fully re-merchandised and reorganised
  * Store operations, staffing, training and processes overhauled to improve
    sales focus and shorten communication lines
  * Significant investment in promotions and pricing to grow market share of
    floor covering products

The results of the closures and restructuring will deliver an ongoing benefit of
#1.4m (Euro2.0 million) per annum as well as providing a simpler operation across
the European business.

As we outlined at the interims in December 2002, we expected to take an
exceptional charge to restructure the European business across financial years
2002/3 and 2003/4 of #6.3 million (Euro10.0 million) in total. However, as a result
of the accelerated restructuring we now expect to expense all of the exceptional
costs, which will be reduced to around #5.4 million (Euro8.3 million), this
financial year.

Trading in Holland has been in line with our expectations, with good market
share growth from additional floor covering sales offsetting the removal of the
decoration products and the price investment we have been making. In Belgium
trading has been slower and, whilst floor covering sales have increased, we
still have an overall sales shortfall against last year.

Overall we expect the European business to make an operating loss (before
exceptional items and goodwill) for the second half at a similar level to that
reported in the first half. This is before the interest charge on the monies
borrowed for the acquisition.

Lord Harris of Peckham the Chairman and Chief Executive said

"Our UK business remains on track to deliver good second half operating profit
growth compared to last year, primarily as a result of our strong margin
improvement. This is despite the sales slowdown we have experienced in our 4th
quarter in line with much of the rest of the market. We do, though, continue to
take market share in what has been a difficult trading environment. We remain
pleased with our progress in Europe and whilst we will show a small operating
loss for this business in the second half we believe the actions taken to
accelerate the pace of change will deliver an even stronger business for the
future."

For further enquiries please contact:

Carpetright plc
Lord Harris of Peckham, Chairman and Chief Executive
Darren Shapland, Finance Director
Telephone: 01708 525522

Citigate Dewe Rogerson
Patrick Toyne Sewell / Sara Batchelor
Telephone: 020 7638 9571


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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