Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Carpetright makes hard floors central to recovery after £60mln share raise

Carpetright’s rescue package also includes the closure of 92 stores and a £15mln loan
flooring
Carpets are out and hard floors are in

Carpetright PLC (LON:CPR) is to make hard flooring a major part of its recovery plan.

The embattled retailer is targeting annualised like-for-like sales growth for hard flooring products of 14% over the next three financial years alongside an acceleration of the store refurbishment programme.

READ: Carpetright to press ahead with restructuring plans as it secures £15mln loan from largest shareholder

A previously flagged share placing to raise £60mln was confirmed today, a big chunk of which will be used to implement the new strategy.

Carpetright’s rescue package includes the closure of 92 stores and a £15mln loan from major shareholder Meditor Capital. Shares were placed at 28p.

The placing and accompanying open offer depend on the sign-off on a company voluntary arrangement with its landlords. Some £6mln of the money will pay for the costs of implementing the CVA.

A further £12.5mln will repay Meditor, while the remainder will cover the rejuvenation programme.

Carpetright has earmarked £14.2mln for store refurbishments, while cost savings from the CVA are forecast in the order of £19mln, though sales will also fall due to the fewer number of stores.

Wilf Walsh, chief executive, said he was delighted with the support of shareholders, which will enable the remaining stores estate to be refurbished and modernised and the digital platform to be upgraded.

Stores that have been refurbished are seeing 9% better like-for-like sales than the other stores.

Carpetright shares rose 8% to 36p.

View full CPR profile View Profile

Carpetright Timeline

Related Articles

H&T Pawnbrokers store
July 02 2018
Last year the company saw gross profits jump 45% thanks to a booming personal loan book and robust sales of luxury second-hand watches and jewellery.
Flying Brands
March 07 2018
Flying Brands has signed a deal for the sale and distribution of its StoneChecker software in South Korea

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use