Carpetright Share Discussion Threads

[bigbigdave] 12/8/2015 15:12

Glad I've been adding recently :o)

[cockneyrebel] 12/8/2015 15:10

Screaming away :-)

CR

[cockneyrebel] 12/8/2015 15:08

Massive trades - seller cleared?

CR

[bamboo2] 10/8/2015 21:28

Buying volume looks good, from my slightly obscured view.

[lauders] 09/8/2015 01:35

Two parts from the Annual Report making pleasant reading amongst others :-)

Earnings and dividend

Total revenue for the year ended 2 May 2015 increased by 4.9% (2014: £447.7m). Underlying profit before tax increased by 208.7% to £14.2m (2014: £4.6m). After the impact of exceptional items, profit before tax was £6.6m (2014: loss of £7.2m). Underlying earnings per share increased to 15.5p (2014: 4.7p) and basic earnings per share was 6.7p (2014: loss of 5.3p).

The Board has decided not to pay a final dividend. In taking this decision, the Board has considered that whilst there has been an improvement in profitability during the year, the priority for the use of cash is to accelerate activity to reduce the fixed occupancy costs and to invest in the remaining stores to broaden the appeal of the brand. That said, if we maintain our current progress the Board would look favourably on restoring the dividend in due course.

++++++

Summary and outlook

After a difficult few years, it is pleasing to report these much improved results for the year, with growth in profits, strong and consistent like-for-like sales growth in the UK, a return to profit in the Rest of Europe and a net cash position at the end of the period.

We believe that the strategic plan we are implementing will reshape Carpetright to ensure the business better capitalises on its market leading position. These changes will take time to take full effect but the initial signs are encouraging.
We are absolutely focused on building on the recent improvement in the Group performance, as well as devoting our energies to revitalising our brand and operations.

I suppose some other parts from the report that are worth repeating are:

It is, however, encouraging to see early signs that our markets appear to be stabilising following a period of significant economic turbulence.

In our UK business, beds provide an important complementary revenue stream to our core floor coverings offer and we believe this category has significant further growth potential. The total beds and bedding market is estimated at £3.2bn and our market penetration, whilst low, is growing steadily as we establish our credentials in this competitive sector.

Q. What have you changed in the period you have been in post?

A. It’s a team effort but apart from who we are, what we sell, how we sell it and where we sell it – not much actually! We have been working hard on re-engineering all aspects of the customer offer and really ensuring that the journey from researching us online to having the product fitted in your home is better than the competition every step of the way.

Q. The Group’s performance improved significantly last year – which factors contributed to the turnaround?

A. Sheer hard work and we have only scratched the surface. We identified a clear strategy based around Choice, Experience, Value and Convenience and all our activities have been geared around this – giving the customer the right ranges, at the best prices with great customer service.

People often try to make shop keeping complicated which is a big mistake.

Q. The Company’s performance has suffered in recent years, are you optimistic for the future?

A. Extremely positive – I have a team of people around me who are absolutely focused and aligned on what we have to do. We need to get on the front foot and build on our popularity with customers. Nobody should be able to match our website, our comprehensive store coverage, our range, our prices or our customer service. It’s a compelling offer, which when executed properly should be unbeatable – that’s the plan.

Enough for now! Have to go out but there is more to read and it looks positive to me! Looking forward to the future and return to dividends one day ;-)

[cockneyrebel] 07/8/2015 17:26

Phoenix selling, Neptune buying.

CR

[cockneyrebel] 07/8/2015 15:35

Annual Report available:



Will put the link in the header

CR

[cockneyrebel] 06/8/2015 18:57

We'll see :-)

CR

[etavener] 06/8/2015 18:32

Thanks CR.I appreciate your response.Ps. I'm going to beat you in the stock challenge this month. :-)

[cockneyrebel] 06/8/2015 17:38

Oh, and this thread is pretty quiet too, which is a positive imo

CR

[cockneyrebel] 06/8/2015 16:49

etavener - what's not to like?

You have a recovery play. Last year's eps 13.7p.

This year's forecasts 19.5p and constantly being revised up, 24,8p eps forecast for next year.

So you have around 50% eps growth this year, 25% forecasts for next year without any further revisions - PE for 2017 of 23. I expect that to be eroded much further still.

Huge sales here and narrow margins so the slightest rise in margins boosts profits greatly.

Lots of big huge warehouses with big rents. Some are being closed, others are being renegotiated - that will mean big savings and higher margins.

Business rebrand - that will improve the footfall.

Boutique stores being introduced as with TPT - smaller stores, lower rents and more central delivery means higher efficiency.

Housing recovery - that's going to increase flooring purchases.

Return to peak profits - if these look like getting anywhere near to the profit levels they once enjoyed (65p eps) the stock will rocket as it has in the past - these used to trade @ near £14 when these were doing 65p.

Look at the chart - when these take - when these get going they fly imo:


free stock charts from uk.advfn.com


New board, old fart Harris with his old 'stack it high, sell it cheap, be the biggest at all cost' has gone - CPR is coming into the new internet/mobile era and Walsh is embracing that imo - the potential to beat is very good and I think the forecasts will prove very conservative and the current forecast PE is higher than will play out.

All imo, dyor etc - I'm a bull, I hold etc.

People were saying these were expensive when they were 340p in Nov but if most people had expected 20p eps this year back then they'd have gobbled them up at 340p imo.

Oh - and no debt an the likelihood of a return to the divi list before too long.
CR

[5070481] 06/8/2015 16:33

NOT the worst trade that NT has had. Chart was looking extended and there wasn't due an update over the summer leaving it open to drop back a bit. It would have taken impressive buying to maintain the previous trajectory.

[scapital] 06/8/2015 10:19

NT's target was only 565 which he could have got and may already have bought back.Strange trade to have made IMO as limited profit but potential to get stopped out pretty quickly.

[etavener] 06/8/2015 09:55

I keep looking at this, but i'm really not sure.

I live near Uxbridge road in London where there is a store. I've never seen anyone in the there and I haven't seen any change recently.

CR, I know you're a fan of this as a turnaround. Please can you explain to me what has attracted you to this?

At the moment I don't see it getting above £6 (especially with the NT and his followers shorting at £6) but this might be a good entry point.

[cockneyrebel] 06/8/2015 09:39

Nice little potential bowl forming on the chart imo:


free stock charts from uk.advfn.com

[bamboo2] 05/8/2015 08:28

Previous H&S has, so far, failed to reach it's target at approx 535, and perhaps it won't, because we are only dealing with averages here. The chart has recently made a small confirmed Symmetrical Triangle. This has an upside b/o with a target of approx 583

[cockneyrebel] 05/8/2015 08:11

Big 100K+ trade in CPR last night at the Offer.

CR

[cockneyrebel] 04/8/2015 14:09

just the left side of a small bowl playing out scottishfield, imo, a little patience as these broker tweak ups get into the mkt imo

All imo

CR

[scottishfield] 04/8/2015 13:45

Could do with a bit of 'up' CR, dwn since end May, but holding tight & have added where appropriate.

[mike740] 31/7/2015 11:20

Increased interest rates will kill the recovery going off here.

Just think about how it will effect the NIL credit charges.

Margins are already wafer thin, last time I looked about 3.5%.

Dont be fooled by the increase in sales its profits that count.

[cockneyrebel] 30/7/2015 10:13

Agree.

Also CPR isn't just carpets - vinyl floor, wood floor, beds etc. People moving and when they do they upgrade the house they buy in many ways.

All imo

CR