United Carpets Share Discussion Threads

[lbo] 04/11/2008 23:41

Small investors will sell more equity unit trusts this year than they will buy - the first such decline in at least a decade. Last month a net £20 million of equity unit trusts was sold by private investors. A year earlier, when the stock market was much higher, investors bought a net £886 million of share-based funds.

Mark Dampier, of Hargreaves Lansdown financial advisers, said that people were doing the opposite of what was sensible. "It's a familiar pattern. When the market is high, investors pile into equities, as we saw in 2000. But when the market hits low points, as in 2003 and again this year, investors stay away. But it is precisely when shares are looking really battered that the best investment opportunities occur."

[startrekker] 04/11/2008 14:45

UCG have actually started competing on price too! whatever next!

[lbo] 03/11/2008 11:40

Well interest rates are going to plummet and this should help Small Caps. Especially when they have dividend yields like UCG. Carpetright said like-for-likes dropped 12.5 per while UCG posted a 3 per cent like-for-like increase to October so sales are holding up quite well versus competitors.

[value viper] 03/11/2008 10:55

lol star - late thirties ! i think they a worth a punt, hoping things generally will improve quicker than the real bears are suggesting.

[startrekker] 03/11/2008 10:51

Viper,

I hope you are still young!

[value viper] 01/11/2008 16:14

holding some from these prices in me pension pot

[lbo] 31/10/2008 10:15

As expected trade is tough but they are still way outperforming Carpetright. Goes ex final dividend 0.55p next week so a nice yield as BOE rates tumble.

They have £2m net cash and worse case will have over £1m profits next year. Although Seymour Pierce forecast current year at £1.7m and next year of £2.1m.

[lbo] 22/10/2008 14:28

AGM must be soon. Cant see it being too positive.

[lbo] 09/9/2008 15:00

Will UCG benefit from the Floods again?

[lbo] 21/8/2008 21:42

Still expanding. I also wonder is that a hint at some close connection developing between Topps Tiles and United Carpets? (aswell as
former Topps Tiles director Ray Tricker now being on the UCG board!)

Carpets plan for old mill


UNITED Carpets and Topps Tiles will be opening stores in Halifax, providing they get planning approval.

The UC Partnership wants to redevelop the former Beech Hill Mills, opposite the Crossley Retail Park, in Pellon Lane.

[lbo] 06/8/2008 12:17

Well its cheaper (foward p/e 5.6), yields more (over 10%) and has better LFL sales growth then Carpetright. Difficult times ahead

[bletherer] 04/8/2008 08:25

I think it's clear after the results that UCG are suffering from the bear market and general gloom about the retailing sector rather than from any weakness in their own performance. This was a cracking set of results which deserved a much greater bounce in the share price. At some point the market will wake up again to the value here; I'm just concerned a predator may try to snap them up on the cheap in the meantime.

[lbo] 30/7/2008 11:19

In floorcoverings, United Carpets has delivered better than expected results and sees plenty of potential to expand its franchise model further by attracting independent carpet specialists to join its business.



Just 24 hours after Floors-2-Go entered administration, United Carpets announces strong results.

United Carpets has reported sales of GBP21.2 million and pre tax profits of GBP1.5 million for the fiscal year ending 31 March 2008, representing growth on last year of 8.3% and 46.8% respectively. While it is currently performing well, United Carpets may find achieving a similar performance harder over the next 12 months.

As well as improving total sales, United Carpets's like-for-like sales have also grown by 9.1% while the uplift in profits has allowed the company's board to increase its dividend. The retailer grew its total sales by opening a net six stores, boosting its number of outlets to 65.

United's bespoke business model, which motivates its store managers to keep growing the business, has also been a factor in its expansion. Of its 65 stores, 47 are franchises - the other 18 are corporately owned - providing clear incentives to store managers to drive sales. Also, United Carpets is quick to take back struggling franchises and re-allocate them to new franchisees. In the last financial year, the retailer took back ownership of five franchises and gave two of its corporate stores to new franchisees.

Despite the rapid deterioration in consumer confidence, United Carpets has been able to maintain its robust performance since the end of the financial year, with like-for-like sales growing by 7.8% for the 16 weeks to 17 July 2008. In addition, it has opened three more corporately owned stores. Nonetheless, there are signs that the tide is beginning to turn. The retailer's current like-for-like growth has nearly halved since September 2007 and it has reclaimed ownership of as many franchises in the last three months as it did in the whole last financial year. Also, as many carpets are oil-based products, United faces growing pressure on its gross margins.

The company has been successful because its franchise model encourages its stores to keep driving sales, while it acts decisively to turnaround struggling stores. While this strategy has served it well in recent years, it remains untested in more challenging market conditions and will be chastened by the demise of rival Floors-2-Go, which focused too much on expansion and did not pay sufficient attention to controlling its cost base.

With the housing market - the main determinant of floor-covering purchases - in an apparent tailspin, and the retailer facing tougher comparatives and fiercer competition, the next 12 months will truly test United's mettle.

[lbo] 30/7/2008 11:17

United Carpets sees sales rise

[lbo] 24/7/2008 13:54

Carpet firm's wall to wall success boost




United Carpets: a rare success story in a troubled sector

[lbo] 24/7/2008 13:53

United Carpets defies gloom

[lbo] 23/7/2008 20:59

United Carpets defies gloom


United Carpets, the flooring retailer, said it would give Carpetright, its larger rival, a "run for its money" in the north of England and hoped to capitalise from financial difficulties of independent operators in the depressed sector.

Unlike Carpetright, founded by Lord Harris of Peckham and which has relied on new stores for growth, United's like-for-like sales rose 9.1 per cent in the last financial year.

In spite of the consumer slowdown, pre-tax profit in the year to the end of March rose from £1.03m to £1.51m on revenue of £21.2m (£19.5m).

However, Seymour Pierce the company broker, downgraded its forecast for next year from £2.1m to £1.9m on concerns about the economy.

Ian Bowness, finance director, said a conservative expansion policy during the credit boom had left it well placed to withstand a downturn.

United, which has about a 3 per cent share of the £1.7bn carpet retail market, also claimed its franchise model was resilient.

"You've got to make that store perform. During a tougher economic climate there's a lot more incentive. There's a lot more pressure on him because that's his only source of income."

Paul Eyre, chief executive, said of the estimated 6,000 independent carpet retailers in the UK: "I think they're going to find it tough. Their margins will be suppressed because most independents are buying from a distributor and decreasing sales will affect them more than ourselves or Carpetright."

The board proposed a final dividend of 0.55p a share giving a total for the year of 0.825p (0.75p).

Earnings per share were 1.15p (0.71p). The shares rose ½p to 8½p.

[lbo] 23/7/2008 15:16

Makes the UCG results even more impressive!

Alchemy's Floors-2-Go calls in the administrators

[lbo] 23/7/2008 10:35

In the current envionment this is a truly amazing set of results. If I was Lord Harris I would be looking at this closely now!

Also explains why the finance director Ian Bowness and his wife bought 250,000 shares each in the company at 10.5 pence per share in March.

United Carpets profits soar



United Carpets has shrugged off difficult trading conditions, increasing pre-tax profits by 46.8 per cent to £1.51 million in the year to March 31

[davebowler] 23/7/2008 09:34

Seymour Pierce

In an extremely subdued and uncertain retailing environment, United Carpets has delivered. Revenue was up by 8% to £21m and PTP increased 21% to £1.7m. Current trading is strong with LFL sales for 16 weeks since the year end up by 8%. The UK could be entering a recession and no sector serving the consumer will escape the consequences of the slowing economy. To be prudent we are reducing our 2008/09 forecast to £1.9m compared to £2.1m. But United Carpet is well-placed to weather the recessionary environment. With £1.4m of cash, the franchise model ensuring steady and controlled growth complemented by a 10% yield, United Carpets could, arguably, be the most attractive and safe retailer to own. We retain our OUTPERFORM recommendation.

[lbo] 23/7/2008 09:13

LONDON (Thomson Financial) - United Carpets Group Plc. said its full year
pretax profit rose 46.8 percent and is cautiously optimistic of delivering
satisfactory growth in the coming year.Pretax profit for the year to March came in at 1.511 million pounds and revenues were 8.3 percent higher at 21.17 million pounds. Underlying profit before tax and exceptions rose 20.8 percent to 1.731 million pounds, while like-for-like sales across the whole of the network were
up 9.1 percent year-on-year. United carpets board recommended a final dividend of 0.55 pence per share, up from 0.25 pence a year ago, bringing the total dividend for the year to 0.825p per share, from 0.75 the previous year. The company added that its significant cash reserves will help it face the increasingly difficult trading environment in the year ahead. Trading has continued to be positive in the first 16 weeks to July 17, with like-for-like sales up 7.9 percent, against a period of strong comparatives.The company also said that since the year-end it has opened three new corporate stores, taken back five poor performing franchised stores and
successfully re-franchised 6 stores

[startrekker] 01/7/2008 12:30

Finally buckling under the pressure, could go a lot lower!

[startrekker] 27/6/2008 13:40

I'm surprised by how well these are holding up considering all the doom and gloom. Maybe CPR are going to go the whole hog after Storeys and Carpetworld and buy UCM.

They could save a shedload of money by closing one where they have one of each.
Can't see how these massive stores with two customers a week pay their overheads.