Carpetright PLC

Result of Meeting and Trading Update

RNS Number : 5550M
Carpetright PLC
30 April 2018
 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT

This announcement contains inside information as defined in EU Regulation No. 596/2014 and is in accordance with the Company's obligations under Article 17 of that Regulation.

LEI: 213800GO32BSNNHXID90

 

Carpetright plc

("Carpetright" or the "Company" or the "Group")

 

Result of CVA Shareholders' Meeting

Trading Update

and

Result of Borrowing Limits Shareholders' Meeting

 

Result of CVA Shareholders' Meeting

Carpetright announced on 26 April 2018 that the CVA Proposal proposed by the directors of the Company had been approved by the requisite majority of creditors of the Company at the Creditors' Meeting held on that date.

Further to that announcement, the Company is pleased to announce that the CVA Proposal has now been approved by the requisite majority of the shareholders of the Company present in person or by proxy at the CVA Shareholders' Meeting held at 10.00 a.m. today.

The Company continues to trade under the control of the directors, operating as a going concern. The Company is not in and will not be in administration as a result of the approval of the CVA Proposal.

As stated in the CVA Announcement, implementation of the CVA will be conditional upon interim funding of up to £15 million and a successful equity capital raising. The Company expects to announce shortly an update in respect of the interim funding and also still expects to launch the equity capital raising on or around 18 May 2018. As previously described in the Company's CVA announcement on 12 April 2018 (the "CVA Announcement"), the equity capital raising is conditional upon there having been no successful challenge to the CVA Proposal.

Commenting on the approval of the CVA Proposal, Wilf Walsh, CEO, said:

"The CVA Proposal will enable us to take the tough but necessary actions needed to restore our profitability.  Having now received approval from both shareholders and creditors we will press ahead with our plans for the proposed equity financing to recapitalise the business and enable Carpetright to address the competitive threat from a position of strength."

 

Trading Update

Since the Company last updated the market on 12 April 2018, trading conditions have remained difficult, as expected, in both our UK and Rest of Europe ("RoE") businesses.

 

In the UK, continued weakness in consumer confidence, coupled with some inevitable disruption to trade arising from the publicity associated with the Group's ongoing restructuring activities, resulted in like-for-like sales falling by 10.5% in the final quarter of our financial year.  This performance, combined with that of the previous nine months, will result in full year like-for-like sales being down by 3.6%.  However, the refurbished stores continue to outperform the uninvested estate, thereby giving us confidence to continue with the store modernisation strategy following the forthcoming equity capital fundraising.  Like-for-like sales in RoE fell by 8.3% in the final quarter against a similar trading background to that experienced in the UK, with the full year figure being an increase of 1.1%.

 

As a result of the above, the Group anticipates reporting an underlying pre-tax loss for the year ending 28 April 2018 in the region of £7m to £9m.

 

Carpetright expects to report its final results for the 2018 financial year on 26 June 2018.

 

Result of Borrowing Limits Shareholders' Meeting

Carpetright announced on 12 April 2018 that it had sent a circular to shareholders convening a general meeting on 30 April 2018 ("General Meeting") to approve a ratification of a technical breach in respect of its borrowing limits ("Resolution 1") and an amendment to the Company's articles of association to remove the current restriction on borrowings ("Resolution 2") (together the "Resolutions").

The Company is pleased to announce that the Resolutions have now been approved by the requisite majority of the shareholders of the Company present at the shareholder meeting held at 9.00 a.m. today.

The proxy position in respect of the Resolutions will shortly be posted on the Company's website at www.carpetright.plc.uk.

Documents Available for Inspection

In accordance with Listing Rule 9.6.2, a copy of the resolutions passed at the CVA Shareholders' Meeting and the General Meeting, together with a copy of the amended Articles of Association of the Company will be uploaded to the National Storage Mechanism and will shortly be available for inspection at www.morningstar.co.uk/uk/nsm.

 

Other than where defined, capitalised terms used in the announcement have the meanings given to them in the CVA Announcement or the CVA Proposal Document made available to shareholders on 12 April 2018.

 

Enquiries:

 


Carpetright plc

Wilf Walsh, Chief Executive

Neil Page, Chief Financial Officer

 

01708 802000

Peel Hunt LLP (Sponsor and joint broker)

Dan Webster

George Sellar

Nicole McDougall

 

020 7418 8900

Deutsche Bank AG (Joint broker)

Simon Hollingsworth

Adam Miller

 

020 7545 8000

Citigate Dewe Rogerson (Financial PR)

Kevin Smith

Nick Hayns

 

020 7638 9571

 

Notes to editors

Carpetright plc is Europe's leading specialist floor coverings and beds retailer. Since the first store was opened in 1988 the business has developed both organically and through acquisition within the UK and other European countries. The Group is organised into two geographical regions, the UK and the Rest of Europe (comprising The Netherlands, Belgium and the Republic of Ireland).

 

This announcement does not constitute an offer to sell, or a solicitation of offers to purchase or subscribe for, securities in the United States. The securities referred to herein have not been, and will not be, registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered, exercised or sold in the United States absent registration or an applicable exemption from registration under the Securities Act.

Peel Hunt LLP ("Peel Hunt") is authorised and regulated by the Financial Conduct Authority (the "FCA") and is acting exclusively for the Company and no one else in relation to the matters referred to herein and is not, and will not be, responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in relation to the contents of this document or any other matter referred to herein.

Deutsche Bank AG, London Branch ("Deutsche Bank") is authorised under German Banking Law (competent authority: European Central Bank) and, in the United Kingdom, by the Prudential Regulation Authority (the "PRA"). It is subject to supervision by the European Central Bank and by BaFin, Germany's Federal Financial Supervisory Authority, and is subject to limited regulation in the United Kingdom by the PRA and the FCA. Details about the extent of its authorisation and regulation by the PRA, and regulation by the FCA, are available on request or from www.db.com/en/content/eu_disclosures.html. Deutsche Bank is acting exclusively for the Company and no one else in connection with the matters referred to herein, and Deutsche Bank is not, and will not be, responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in relation to the contents of this document or any other matter referred to herein.

No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by Peel Hunt or Deutsche Bank or by any of their respective affiliates or agents as to, or in relation to, the accuracy or completeness of this announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefore is expressly disclaimed.

 


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