News: United Carpets to de-list from AIM

Rotherham-based United Carpets Group plc has announced plans for a cancellation of admission to trading on the stock exchange.

The third largest chain of specialist retail carpet and floor covering stores in the UK was admitted to AIM in February 2005. It is set to re-register as a private limited company.

Bosses now believe that "the company is not of a sufficient scale to attract interest from institutional and other investors and consequently suffers from a lack of liquidity for its Ordinary Shares."

Unlike many of its competitors, the Bramley business is based on a franchise model. The business commenced trading in 1997 and in 1998 the first franchised store was created. At July 2020 the group had a total of 56 stores of which 46 were operated by franchisees.

In 2012, the group had its shares temporarily suspended after admitting it would not be able to publish its full-year results on time. A pre-pack administration deal saw United Carpets Group acquire the business and assets of its trading subsidiary United Carpets (Northern) Limited.

A statment to the stock exchange said: "The Directors have been reviewing the merits or otherwise of the Company's Ordinary Shares continuing to be admitted to trading on AIM and remaining a public limited company. The following key factors have been taken into account, amongst other matters, by the Directors in reaching the conclusion that the De-Listing is in the best interests of the Company and its Shareholders as a whole."

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Most of the shares are owned by the company's founder, and current chief executive, Paul Eyre, and an offer of 6.25 pence per share to remaining shareholders have been put forward. The maximum cash consideration payable should all qualifying shareholders tender their shares is approximately £1.8m which will be funded from the Company's existing cash resources.

Proposals are due to be discussed further at a General Meeting this week.

The company is yet to report its financial results for the period affected by Covid-19. The Group's accounting period was extended from 31 March to 30 September so that the majority of the impact from Covid-19 should be confined within that extended accounting period.

Peter Cowgill, now outgoing Chairman, said in July: "We expect 2020 to be an unpredictable period due to Covid-19. Nevertheless, we believe strongly in the Group's core retail proposition providing great products and great value to our customers and with this as a base the Board is confident the Company is well placed to return the business to a commercially strong position."

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News: Sales at United Carpets hit by warm weather and World Cup

Rotherham-based United Carpets, the third largest chain of specialist retail carpet and floor covering stores in the UK, has reported a dip in sales following a satisfactory period of trading in the previous 12 months.

Challenges in the retail market, and within the home furnishings sector in particular, have persisted since the Bramley-based, AIM-listed company restructured its business following a pre-pack administration deal in 2012.

The group uses a franchise model and the board said in its unaudited preliminary results for the year ended March 31 2018, that "recording moderate increases in revenue, level profits and positive like for like sales of 3.2% is therefore a satisfactory outcome for the year."

In an update to the stock exchange, the board reiterated that trading in early summer was difficult due to the exceptionally warm, sunny weather, and the World Cup, "which together had a significant adverse impact on the Company's sales volumes, as they had on the sector as a whole."

This resulted in a modest decline of 1.9% in like for like sales for the 24 weeks ended September 13 2018.

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The firm said that it had carried out increased marketing investment and that further costs had been absorbed during the period in supporting the franchise network and making additional investment in future business developments. It added that this would be reflected in significantly lower profit levels in the first half of the current financial year.

The update, which coincided with the firms' AGM, concluded: "Whilst comparatives for the balance of the year remain challenging, the Board believes the business is well positioned for future trading and is actively pursuing appropriate ways to respond in the second half of this financial year in order to reduce the impact on the full year results.

"In view of the strength of its store portfolio together with the abilities and commitment of the franchisee network, the Board remains confident that the Group will continue to be cash generative, with no borrowings, and able to support its current dividend policy."

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News: United Carpets reports sales rise

Bosses at Rotherham-based United Carpets, the third largest chain of specialist retail carpet and floor covering stores in the UK, have been pleased with the company's 3.2% like for like sales increase.

Challenges in the retail market, and within the home furnishings sector in particular, have persisted since the Bramley-based, AIM-listed company restructured its business following a pre-pack administration deal in 2012.

The group uses a franchise model and the board said that "recording moderate increases in revenue, level profits and positive like for like sales of 3.2% is therefore a satisfactory outcome for the year."

In its unaudited preliminary results for the year ended March 31 2018, United Carpets reported a pre-tax profit of £1.52m, compared to £1.53m in the previous year, as revenue rose 2.5% to £21.72m.

With the like-for-like sales increasing during the period the company said that they had however fallen 1.6% in the first months of the new financial year.

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During the year, one corporate store was added to the portfolio taking the total number of stores to 58. One new store could open this financial year. Of the 58 stores, 50 are operated by franchisees and eight are corporate stores of which three are considered to be long term corporate stores and five could be franchised.

The board at United Carpets said that the key driver for the increase in sales "came from the effectiveness of the franchise network and the combined commitment of our franchisees who act as individual business owners with the ability to draw upon the resources of the group."

Paul Eyre, chief executive at United Carpets, said: "In the context of today's retail market, achieving a 3.2% like for like sales increase was a pleasing performance. It reflects strong product ranges at attractive price points and a high level of personal commitment from our franchisees to their individual stores, displaying substantial resilience when market conditions become more challenging.

"While the adverse impact of the recent exceptional weather and the World Cup is unsurprising, the resilience of the franchise network represents a key point of differentiation for United Carpets and one that continues to be important in the current market environment."

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News: United Carpets posts results at a time of "increasing economic uncertainty"

Rotherham-based United Carpets Group plc, the third largest chain of specialist retail carpet and floor covering stores in the UK, has posted what it describes as a "creditable result against a backdrop of increasing economic uncertainty."

The Bramley-based, AIM-listed company has restructured in recent years following a pre-pack administration deal in 2012.


The group uses a franchise model and reported that revenue was £21.2m for its financial year ended March 31 2017, slightly down from the £21.4m in the previous year. Profit before tax was £1.5m, similar to the £1.49m reported a year previous.

During the period, two franchised stores and two corporate stores were closed and two franchised stores and a corporate store were re-located within the same town. As a result, at the end of the financial year, the group had 57 stores of which 50 were franchised and seven were corporate.

The closures are part of a focus on stores which meet or exceed performance criteria and the plc has not ruled out opening more stores "where it can establish a profitable long-term presence."

Like for like sales across the whole of the network (based on stores that have traded throughout both the period under review and the corresponding period in the prior year and thus excluding stores that closed during either period) were up 1.3%. United Carpets said that this "was a pleasing result against strong comparatives in the prior year and during what is considered to be a tough trading environment."

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Paul Eyre, chief executive at United Carpets, said: "These results show a modest improvement on the prior year together with a positive like for like performance up 1.3%. This is a creditable result against a backdrop of increasing economic uncertainty which has tended to damage consumer confidence. We have been helped by the resilience of our franchise model together with the strength of our core customer offering of providing great quality products at attractive price points."

Peter Cowgill, chairman of United Carpets, said: "Given the wider environment, this has been a good year for United Carpets. Political and economic changes have affected consumer confidence and this has resulted in a more challenging retail environment so a modest improvement in profit before tax represents sound progress.

"It remains difficult to predict the full impact that Brexit and other political developments might have on the UK, however a prolonged period of significant uncertainty has meant that the mood of the UK consumer has fluctuated throughout the past year. It appears probable that this state of flux is unlikely to stabilise in the near term as we go through the Brexit process and therefore we expect the challenging market conditions to remain prevalent over the coming year.

"Despite some recent weakening, the UK housing market continues to function reasonably positively and this alongside the Group's debt free, stable financial base and strong market positioning makes the Group, in the Board's opinion, well positioned going forward."

The Rotherham branch of United Carpets is sponsoring the Wickersley Youth Junior Football team for the upcoming 2017/18 season. Jason Swift, branch manager, said: "We know how important it is to support local teams and encourage youngsters to get out and about and active in this manner. Our sponsorship package includes branded tracksuits and kit bags; all vital equipment for the team so we're delighted to be a part of it.

"Opportunities like this are one of the best parts of working with a locally run business like United Carpets & Beds, we can get involved in activity like this and make a real difference in the community."

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News: Rotherham Tradeworld plans updated

Developers behind a £5.5m trade counter retail development in Rotherham are bidding to secure planning permission that would enable United Carpets to open an outlet on the former industrial site.

Construction began last year for the Parkgate development where initial 2014 plans were approved to create ten units totalling 45,000 sq ft. Lettings include National Tyres & Autocare (NTS), Al Murad DIY Ltd and Halfords Autocentres. Planning permission was also secured for one unit to open as a gym, operated by the Gym Group.

Now a new planning application has been submitted that would change the use of two B8 trade counter units in order to provide a single 10,441 sq ft bulky goods retail unit (Use Class A1). The new retail unit is set to be occupied by United Carpets.

Bakewell based Litton Property Group purchased the Ruscon engineering works on Rotherham Road in 2003 but plans for a DIY retail store and garden centre were refused in 2005. Outline planning permission was granted in 2006 for a warehouse development with 20% of the floorspace approved for retail use.

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Rotherham-based United Carpets and Beds is the UK's largest franchised flooring and bed retailer and has recently moved its main Rotherham store to the former Staples unit at the Foundry Retail Park nearby.

As the site is not located within a designated town, district or local centre, a sequential test assessment is included in line with national and local planning policies. Sequential tests ensure that development is located in the most sustainable location first (usually in town centres), before other, less sustainable locations are chosen.

The applicants assessed a number of sequentially preferable locations, discounting vacant units in Rotherham town centre as being too small. Forge Island was discounted due to it forming part of the Council's future plans for a new entertainment, leisure and cultural quarter/complex.

When discussing potential projects being developed through the town centre masterplan at Forge Island and the markets, the planning consultants, DPP, acting on behalf of the applicants, add: "Proposals for a change of use of two trade counter units to provide a small bulky goods retail store outside of the town centre will not impact upon potential investment for the redevelopment of these sites."

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If the plans are approved, United Carpets will move from its current retail unit and occupy the proposed retail unit at Tradeworld. United Carpets have only recently moved to Unit 5 from another unit within the Foundry Retail Park (Unit 12 – Adjacent to DFS), due to lease arrangements.

The application adds that "it is not anticipated that the vacating of United Carpets from the Great Eastern Retail Park will have a significant adverse impact on the vitality and viability of the emerging centre as a whole. Indeed the previous United Carpet unit has already been pre let to Coop Concessions [AHF Futniture] and it is anticipated from the previous "churn" of occupiers at this retail park over the previous years that Unit 5 will not remain vacant for an extended period of time."

An assessment of the impact on town centres is also included with the applicant adding: "As the proposal actually results in a reduction in United Carpets trading floorspace, it is extremely unlikely that impact levels on any of the identified competing units within defined centres, will be of a significant adverse level; indeed these are anticipated to be negligible."

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News: Space set to fill up at Rotherham retail park

Two tenants are planning to take space at the Foundry Retail park in Rotherham.

Formerly known as the Great Eastern Retail Park at Parkgate, the 170,748 sq ft retail development with 813 car parking spaces is home to The Range, Harveys, DFS, Wren Kitchens and B&M.

Plans have been submitted for new mezzanine levels in two of the units that would facilitate the requirements of the business models of Rotherham-based retailer, United Carpets - that would expand across the park - and co-operative company, AHF Futniture - that would move on to the development.

Currently operating from Unit 12 on a temporary basis having moved down the road last year, United Carpets, the second largest chain of specialist retail carpet and floor covering stores in the UK, is hoping to move into the large vacant unit 5 on the park.

The plans, drawn up by Montagu Evans, state: "The proposed development involves the construction of a 678 sq m [7,000 sq ft] mezzanine in Unit 5 and a 786 sq m [8,460 sq ft] mezzanine in Unit 12. Approval of these applications will enable United Carpets to relocate to Unit 5 on a permanent lease, and Unit 12 to be occupied by AHF Furniture. The applications represents an opportunity to make better use of existing floorspace to meet the needs of two bulky goods retailers, and to intensify the use of the Park through the provision of additional floorspace within an established retail park."

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Unit 5 was previously part of a larger unit known as Unit 5/6 and occupied by Staples until it closed in 2012. It is being advertised by GVA. Unit 12 sits alongside the separate DFS unit.

The applicants argue that the installation of mezzanine floors at the location is established. With mezzanine floors, no rent of service charge is applicable for the extra space. If approved, the units would provide some 15,000 sq ft and 18,000 sq ft for the retailers.

The plans conclude: "The mezzanine floorspace requirement arises from the intention of our client to display more of their product line. Accordingly, their occupation of a unit which has stood vacant for a number of years, though temporarily leased to United Carpets, will provide Rotherham with a new bulky goods retailer that will provide additional choice and competition to consumers, and also result in economic benefits through job provision."

In its preliminary results for the year ended March 31 2015, Bramley-based United Carpets reported a 29% increase in profit before tax to £1.21m, with like for like sales up 2.7% for the year. Like for like sales increased by 2.7% with revenue for the year at £19.1m, down from £21.1m in the previous year.

Operating from retail parks and department store concessions, AHF Furniture is the UK's largest employee furniture co-op and was previously part of the Anglia Co-op. It specialises in the retail of quality home furnishings at affordable prices. With its nearest store in Mansfield, the holding company reported sales of £19.5m for the year ended March 31 2015.

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As the site is not located within a designated town, district or local centre, a sequential test assessment is included in line with national and local planning policies. Sequential tests ensure that development is located in the most sustainable location first (usually in town centres), before other, less sustainable locations are chosen.

The applicants assessed a number of sequentially preferable locations, discounting sites for bulky goods retail such as Forge Island - earmarked for leisure development - and the vacant former NatWest Bank in the town centre - considered inflexible for a furniture store.

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News: New hires for listed Rotherham retailers

Crawshaw Group PLC, the Rotherham-based fresh meat and food to go retailer, has appointed another senior industry figure to its management team as it continues its growth plan.


The AIM-listed firm is based at Hellaby and has set itself an ambitious target of 200 shops within eight years. The plan involves investing £200m and creating 2,500 jobs. In 2014 it announced details of the placing of new shares in a bid to raise nearly £9m to support the acceleration of its store opening programme. To deliver the plan, Noel Collett, formerly Lidl's chief operating officer for the UK business, was appointed as CEO at Crawshaw.

Now Ken McMeikan (pictured) has been appointed as a non-executive director, bringing 25 years' worth of senior retail experience. McMeikan is moving from the position of group CEO of the Brakes Group, a leading pan-European foodservice company, a position he has held since 2013. Prior to this, McMeikan was group CEO of Greggs Plc, the UK's leading bakery food-on-the-go retailer, a position he held from 2008-2013. Additionally, Ken has a combined 18 years of senior retail experience with both Tesco and Sainsbury's. 

Richard Rose, chairman at Crawshaw Group, said: "We are delighted to announce today the appointment of Ken McMeikan as a non-executive director of Crawshaw. Ken brings a wealth of foodservice, food retailing and high street experience along with expertise in business strategy development during periods of accelerated high street expansion and sales growth. We are excited by Ken's appointment and look forward to him further strengthening our senior management team during our growth phase."

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The company also updated the stock market with a trading and strategic update for the 20 weeks June 19 2016. Group sales were up 37% for the first 20 weeks of the financial year with like-for-like sales down 1.9% for the same period. The company put this down to soft retail conditions on the High Street.

The rollout plan continues with an additional eight trading stores already opened in the financial year to date, taking the portfolio to 47 stores. In June Crawshaws opened its first standalone fresh meat factory shop in West Bromwich with a second set to open in the summer. A first fresh-meat-only store on the high street, which unlocks further opportunities to expand into smaller footprint retail space, is also scheduled to open.

Noel Collett, CEO at Crawshaw Group, said: "We have made a good start to the year. Our trading performance has been in line with expectations as we effectively manage the balance of sales and margin in our like-for-like estate, and our growth strategy continues to progress well.

"In the last couple of weeks, we have seen some distorted and suppressed footfall patterns created through the combined impacts of the start of the international football championships, the adverse persistent weather and the build up to the EU Referendum. It is too early to judge if the vote to leave the EU impacts consumer confidence in the medium term, but clearly our retail format of quality fresh meat at value prices means we are well placed to delight new and existing customers with our offer should disposable income become stretched."

Rotherham-based United Carpets, the second largest chain of specialist retail carpet and floor covering stores in the UK, has appointed its operations director Paul Newton as an executive director.

Having worked in the flooring sector for some 31 years, Newton has been operations Ddirector at United Carpets since September 2011, having previously held senior executive roles in two major flooring retailers. He is responsible for the retail operations of the company's network of corporate and franchised stores.

Paul Eyre, chief executive at United Carpets, said: "We are delighted to announce the appointment of Paul and would like to welcome him to the Board. With his extensive knowledge of the Company having worked with us for some six years, we are confident of his increased contribution to United Carpets."

In 2012, the Bramley-based, AIM-listed company underwent a pre-pack administration deal. It recently reported that the improved trading performance seen in the first half of the financial year ending March 31 2016 continued into the second half of the financial year. On a like for like basis, sales for the second half increased by 6.4% against the comparable period last year.

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News: Swinton indoor trampoline centre planned

Another indoor trampoline centre is being planned for vacant commercial property in the Rotherham borough.

A former parcel depot at Parkgate was the first to be converted to leisure use last year when the flagship "JUMP INC." facility was created in a 22,000 sq ft unit offering 170 interconnected trampolines, trampolines up the walls, air bags, basketball, dodgeball and fitness facilities.

Now, Rotherham-based carpet retailer, United Carpets, has submitted a planning application for a vacant unit at Rowms Lane, Swinton.

UC Holdings Ltd, wants to change the use from commercial to an 7,500 sq ft indoor trampoline centre (Use Class D2) at Rowms Lane Trade Park. The site was last used by United Carpets and Beds but has been vacant for a number of years.

An operator for the facility is not yet known.

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An operator for the facility is not yet known.

The plans, drawn up by MDB Planning, state: "It is considered that the retention of the Site for employment use is not necessary. The Site has been marketed unsuccessfully for employment and commercial uses for a period of approximately five years. During this period there has been no real interest from industrial/commercial operators and it has not been possible to let or sell the unit. Overall therefore it is considered that the Site is no longer viable for employment use."

The applicants estimate that, if approved, the new leisure use would create five gull time and ten part time jobs.

With the proposed trampoline park likely to attract 2,438 visitors per week, 72 car parking spaces are proposed to accommodate peak visitor hours and staff and to avoid on-street car parking.

The first indoor trampoline park opened in 2004 in Las Vegas and they have been gaining in popularity ever since. The International Association of Trampoline Parks estimates that by the end of 2015 there would be more than 550 indoor trampoline parks open worldwide.

Since opening in Rotherham, JUMP INC. has gone on to open in Sheffield and is planning to open in Lincoln in the summer.

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News: United Carpets fit for growth

Rotherham-based United Carpets, the second largest chain of specialist retail carpet and floor covering stores in the UK, is starting to see the benefits of the improving trends in consumer confidence and the housing sector.

In 2012, the Bramley-based, AIM-listed company underwent a pre-pack administration deal.


The restructuring, which saw a number of under-performing stores and franchises close, helped to improve profit margins and reduce distribution costs and administrative expenses including rent, rates and staff costs.

In its interim results for the six month period ended September 30 2015, the company reported an increase in profit before tax of 10.1% compared to the same period in 2014, driven by an increase in network sales and revenue. Network sales across the group, including the value of retail sales by franchisees, were £27.1m, Up from £25.6m in the same period in 2014.

Like for like sales were a reported 5% up on the same six months last year and profit before tax increased to £588,000.

The group uses a franchise model and currently has 53 franchised stores from its 62 store portfolio. The total remains largely unchanged as stores open and relocate.

As well as improving flooring sales, the group said that the sale of beds during the period continued the "recent success story with a double digit like for like increase during the period."

Recommended reading: Why buy a divan bed from Comfybedss?

Paul Eyre, chief executive at United Carpets, said: "The period under review has been characterised by improvements to revenue and profitability across the Group. We continue to benefit from a reasonable market environment which has improved the returns we have made from our 61 strong portfolio of stores. With consumer confidence and the housing sector showing signs of a generally improving trend, the Board is confident in the long term prospects for the Group."

Looking ahead, Peter Cowgill, chairman at United Carpets, said: "Like for like sales since the period end remain positive against much tougher comparatives in the second half of last year and the Group appears well positioned to complete this financial year successfully. The business is transitioning from a period of retrenchment to the next phase of growth from a sustainable base."

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News: United Carpets on firm footing

Rotherham-based United Carpets, the second largest chain of specialist retail carpet and floor covering stores in the UK, says that it has created a new base for delivering sustainable growth following positive trading.


In August 2012, the Bramley-based, AIM-listed company had its shares temporarily suspended after admitting it would not be able to publish its full-year results on time. In October 2012, a pre-pack administration deal saw United Carpets Group acquire the business and assets of its trading subsidiary United Carpets (Northern) Limited.

The restructuring, which saw a number of under-performing stores and franchises close, helped to improve profit margins and reduce distribution costs and administrative expenses including rent, rates and staff costs.

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In its preliminary results for the year ended March 31 2015, the group reported a 29% increase in profit before tax to £1.21m, with like for like sales up 2.7% for the year.

Like for like sales increased by 2.7% with revenue for the year at £19.1m, down from £21.1m in the previous year.

The statement added that trading in the period had been positive, benefitting from an improving consumer environment and the restructuring undertaken in 2012.

At the end of the financial period, the network of stores totalled 63, down from more than 80 stores just over two years ago, of which 47 are franchised and 14 are run as corporate stores. Since then more stores of opened so that the total now stands at 63.

The statement said: "While the majority of stores are showing encouraging signs for the future, there remains a handful of stores which are underperforming. We are evaluating ways to address this, which may include a small number of further store closures. At the same time we are employing a small and highly selective store opening policy including the opening of our smaller format store concept which, while still in its infancy, is showing some promising signs."

The Rotherham store recently relocated to the Foundry Retail Park at Pargkate.

Gross margin was 66.8% compared to 61.7% and distribution costs and administrative expenses, which include rent, rates and staff costs at the corporate stores, reduced by £0.5m due to savings in the ongoing cost of supporting the franchise network as a result of improving performance.

A special dividend of 1p per share was paid in June and the board is recommending a final dividend of 0.25p per share in October.

Paul Eyre, chief executive at United Carpets, said: "It is very pleasing to report improving results demonstrating the success of the changes we have made and showing that we have created a new base for delivering sustainable growth and returns over the longer-term.

"Our like for like sales performance showed a creditable increase, up 2.7%, contributing to an increase in profit before tax of 29%. This, together with a strengthened balance sheet and no material borrowings means the Group is well placed for the future. This is reflected in our decision to re-introduce a final dividend for the year as part of our intention to pay a progressive dividend in line with the future growth of the business."

Looking ahead, Peter Cowgill, Chairman of United Carpets said: "United Carpets is well positioned for the future. Demand for the group's products has been consistent and the store network is becoming increasingly well balanced. The balance sheet is strengthened, there are no borrowings other than a small number of immaterial finance leases and the marketplace is improving.

"Just as importantly, the management team are also now able to focus on developing the business and implement changes such as the new sales process for beds, introduction of the smaller store format and interest free credit all of which are contributing to an improving performance. While there are still ongoing challenges which will no doubt impact the business, the board is confident that the Group is once again well positioned and looks forward to delivering sustainable growth and returns for shareholders."

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News: Caravan site planned for Mexborough

Plans for a retirement caravan park on the former United Carpets site in Mexborough have been submitted.

The vacant 1.9 hectare site at Station Road, which straddles the Doncaster and Rotherham boundary, has had a recent history of stalled developments. Outline planning application to develop 92 residential units and 1,065 sq m of commercial floorspace were approved in 2010 but never developed.

A planned £10m pound supermarket and petrol station was reported to have been axed as developers, Kier Property could not secure an supermarket operator to occupy the site.

Rotherham-based retailer, United Carpets, has now submitted plans for the change of use of unused land adjacent to Mexborough town centre and train station to form a residential park home (caravan) site.

The site was used by United Carpets for its retail warehouse and ancillary offices. The buildings on the site have been demolished and the site is in the process of being cleared.

The plans, drawn up by Montgomery Forgan Associates, state that: "We understand that neither the proposed residential or superstore proposals were considered economically viable for the site and locality, and these proposals have now been abandoned."

56 park homes are proposed to create "a high quality retirement park home site," along with an associated internal access road, car parking, garages and open space. Varying in size from 12 ft x 30 ft to 20 ft x 50 ft, the homes will typically have two bedrooms (including en-suite), study and a lounge, dining area and kitchen.

Applicants say that the owners/occupiers of the park homes will be those nearing retirement or who are already retired.

The plans explain that: "Park homes are particularly attractive to this [over 50] age group, as by selling their more expensive houses and moving to a more affordable park home, equity in the house can be converted to a retirement/pension fund. This in turn means that there is less reliance on the Government and Council for financial support in retirement and housing stock is being released for younger house buyers."

Reusing brownfield land, applicants believe that the redevelopment would also enhance the setting of the Grade II listed railway station and assist in the wider regeneration objectives for the Mexborough area.

Based at Bramley, United Carpets is the second largest chain of specialist retail carpet and floor covering stores in the UK. It has recently moved its Rotherham store to Great Eastern Way retail park at Parkgate after 30 years at nearby Gateway Industrial Estate.

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News: Profits up at United Carpets

Rotherham-based United Carpets, the second largest chain of specialist retail carpet and floor covering stores in the UK, has reported an increase in profit before tax of 18.1% against the comparable six month period last year.

In August 2012, the Bramley-based, AIM-listed company had its shares temporarily suspended after admitting it would not be able to publish its full-year results on time. In October 2012, a pre-pack administration deal saw United Carpets Group acquire the business and assets of its trading subsidiary United Carpets (Northern) Limited.

The restructuring, which saw a number of under-performing stores and franchises close, helped to improve profit margins and reduce distribution costs and administrative expenses including rent, rates and staff costs.

Like-for-like sales increased by 0.3% in the six months to the end of September but network sales fell to £25.6m from £28m and revenue dropped to £9.1m from £10.3m a year ago. This meant that pre-tax profit rose 18.1% to £534,000.

Today, the network of stores totals 60, down from more than 80 stores just over two years ago, of which 48 are franchised and 12 are run as corporate stores. The group said that the changes to the portfolio of stores resulted in a stronger core network which is reflected in the current trading performance. Leases have been re-negotiated for nearly all of the stores and the cost base has been reduced.

The group added that there may be a small number of store closures in the future but six concept stores have also opened in smaller units on the traditional High Street, working well with the store network.

Paul Eyre, chief executive of United Carpets, said: "I am pleased to be able to report a good performance by the Group. We have been helped, to some extent, by an improving housing market with slightly higher average transaction values which we believe reflects an improvement in consumer confidence. More recent like for like sales figures have been more positive and I believe we are well placed to deliver a good result for the year.

"We continue to benefit from our restructuring programme as we operate from a lower cost base giving the opportunity to invest in developing the business and providing the basis for the Board's confidence in the future."

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News: United Carpets on a roll at year end

Rotherham-based United Carpets, the second largest chain of specialist retail carpet and floor covering stores in the UK, has posted its first full year trading report since a significant restructure and reported profits on the back of increasing sales.

In August 2012, the Bramley-based, AIM-listed company had its shares temporarily suspended after admitting it would not be able to publish its full-year results on time. In October 2012, a pre-pack administration deal saw United Carpets Group acquire the business and assets of its trading subsidiary United Carpets (Northern) Limited.

The restructuring, which saw a number of under-performing stores and franchises close, helped to improve profit margins and reduce distribution costs and administrative expenses including rent, rates and staff costs.

For the year ended March 31 2014, United Carpets saw a 2.2% increase in like for like sales with turnover reaching £21.1m and pre-tax profits of £937,000.

Peter Cowgill, chairman at United Carpets, said: "These results which show a significant improvement in Group profitability reflecting the fact that the Company's restructuring has largely been successfully completed and it is no longer held back by a significant tail of weaker stores which historically have impacted heavily on profit margins and demanded a disproportionate amount of management time.

"Today, the network of stores totals 57, down from over 80 stores two years ago, of which 46 are franchised and 11 are run as corporate stores. The Group recorded a 2.2% increase in like for like sales performance for the year which was, in our view, a satisfactory performance.

"The UK market has been better and continues to show signs that it is recovering although we believe the market remains fragile with a number of hurdles still to come such as increases in interest rates which are expected in the not too distant future. We are therefore looking to continue to develop the business whilst endeavouring to ensure that it does not become over extended."

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A small number of stores are expected to close as the restructuring concludes. The management team has moved its focus back to developing the business, refining the customer offer and driving sales and is exploring limited trials of smaller store formats.

The board believe that trading is currently patchy but that the overall picture is generally moving forward, underpinned by higher levels of employment and a more active housing market.

Paul Eyre, chief executive at United Carpets, said: "We are pleased to be announcing a good uplift in profitability, helped by an increase in like for like sales as consumer confidence increases slightly and the housing market also improves.

"This trading performance also reflects the benefits of the management actions taken two years ago to reduce significantly the size of the store portfolio, removing the majority of under-performing stores, re-focusing the business on a core network of stores and giving the Company a stronger financial base from which to operate."

No dividend is proposed but a capital restructuring proposal would enable the company to reduce the issued share capital and cancel the share premium account. Eliminating the deficit on the company's profit and loss account would create distributable reserves in the company to facilitate the future consideration of payment of dividends to shareholders. The proposal would need signing off by the High Court.

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News: Better than expected trading at United Carpets

Rotherham-based United Carpets, the UK's largest franchised carpet retailer, has reported that trading in the second half of the current financial year has been better than expected.

In a trading update, the Bramley-based business reported that like for like sales for the 21 weeks of the second half to date are up 5.4% compared to the same period last year.

In August 2012, United Carpets had its shares temporarily suspended after admitting it would not be able to publish its full-year results on time. In October 2012, a pre-pack administration deal saw United Carpets Group acquire the business and assets of its trading subsidiary United Carpets (Northern) Limited.

The firm was readmitted to the AIM stock exchange last year after delivering its delayed final results for the period ended October 5 2012.

United Carpets has reduced the number of stores from a peak of 86 to 59; removing stores from the network which had been consistently underperforming and were threatening to undermine the stability of the business.

The group now operates from 48 franchised stores and 11 corporate stores which the company says have responded well to the changes and are showing the benefits of the restructuring, particularly in the last few months.

The board added that it believes there has been a slight improvement in confidence amongst consumers but that the overall market still remains very challenging. Consequently, the board now expect its final results for the year ended March 31 2014 to be "materially better than market expectations."

Paul Eyre, chief executive of United Carpets, said: "We have been encouraged with trading in the early part of this calendar year which will flow through to better than expected year end numbers. The changes we have made have transformed our business and with the economy as a whole appearing to move in the right direction, I am increasingly optimistic about the future."

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News: United Carpets no longer part of OFT investigation

Rotherham-based United Carpets, the UK's largest franchised carpet retailer, has changed its pricing practices following an investigation by the Office of Fair Treading (OFT).

The Bramley-based group operates from 60 stores and specialises in carpets, flooring, wood floor, laminate and vinyl flooring plus beds and mattress.

In an update to the stock exchange, the AIM-listed firm said that it has signed undertakings that commit it to ensuring that its advertised recommended retail prices are genuine and are those at which the products are typically sold throughout the year. It also said that it is committed to refraining from using time-sensitive promotions such as "closing down sale" or "closing down for refurbishment" without giving consumers clear information and an explanation of the circumstances of the promotion.

United Carpets said in a statement: "The OFT has been looking into the pricing practices of a number of retailers in the home furniture, beds and flooring sector of the market including United Carpets. As a result, the Company can confirm that it has signed up to two additional retailing principles agreed with the OFT to ensure even greater transparency to our pricing practices.

"While the OFT's investigation into the sector is ongoing, United Carpets is no longer a part of it."

Gaucho Rasmussen, director of the Goods and Consumer Group at the OFT, said: "Shoppers rely upon clear, honest and upfront advertising of prices. When retailers advertise misleading prices or promotions, consumers often make different purchases - or spend more money - than they otherwise might have done. We therefore welcome the changes that United Carpets have made, and agreed to make, to their pricing and marketing strategies."

United Carpets was readmitted to the AIM stock exchange last year after delivering its delayed final results for the period ended October 5 2012. In its financial update for the six month period ended September 30 2013, the group reported sales across the group of £28m with profit before tax of £452,000, an increase from £113,000 seen in the same period last year.

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News: Signs of improvement at United Carpets

Rotherham-based United Carpets, the UK's largest franchised carpet retailer, has seen another increase in profits following its significant restructure.

In its financial update for the six month period ended September 30 2013, the Bramley-based business reported sales across the group of £28m with profit before tax of £452,000, an increase from £113,000 seen in the same period last year.

The profits were achieved despite a decline in like for like sales of 1.6% and sales for the period of £10.3m, a decrease in comparison with the previous six month period, reflecting a reduction in store numbers. United Carpets has reduced the number of stores from a peak of 86 to 60; removing stores from the network which had been consistently underperforming and were threatening to undermine the stability of the business.

The group now operates from 60 stores of which 51 were franchised and nine were corporate. As lease and rent negotiations continue the board stated that they "anticipate a small number of further closures but the key changes have largely been made and the store network is in a stronger position."

In August 2012, United Carpets had its shares temporarily suspended after admitting it would not be able to publish its full-year results on time. In October 2012, a pre-pack administration deal saw United Carpets Group acquire the business and assets of its trading subsidiary United Carpets (Northern) Limited.

The firm was readmitted to the AIM stock exchange earlier this year after delivering its delayed final results for the period ended October 5 2012.

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The restructuring has helped to improve profit margins and reduce distribution costs and administrative expenses including rent, rates and staff costs.

Paul Eyre, chief executive of United Carpets, said: "These results should give shareholders increasing confidence in the future of the business. The restructuring programme, begun last year and continued into this year, has reduced the number of stores to 60, down from a peak of 86 stores, removing those which were no longer viable. As a result the business is in a much better position with which to operate successfully in what continues to be a challenging market."

Peter Cowgill, chairman of United Carpets, added: "As a result of the actions taken last year, the Company has established a sounder, debt free base consisting of a smaller more profitable portfolio of stores on which to build, going forward.

"Whilst there has been some encouraging signs of an improvement in the economy, this does not yet appear to have materialised in consumers feeling better off. We are therefore not anticipating an upsurge in consumer spending in the short term; instead we hope to gain market share from a continued focus on customer service and providing genuine value for money offers on good quality products."

Like for like sales in the 11 weeks since the half year end have increased by 2.4% showing some improvement.

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News: United Carpets report pre-tax profits

Operating from a core portfolio of stores has seen Rotherham-based United Carpets, the UK's largest franchised carpet retailer, return to profit, despite a fall in like for like sales.

In August 2012, the Bramley-based group had its shares temporarily suspended after admitting it would not be able to publish its full-year results on time. In October, a pre-pack administration deal saw United Carpets Group acquire the business and assets of its trading subsidiary United Carpets (Northern) Limited.

The firm was readmitted to the AIM stock exchange earlier this year after delivering its delayed final results for the period ended October 5 2012.

Announcing its preliminary results for the six month period ended March 31 2013, United Carpets reported that revenue was £11.3m, compared to a nil figure for the 18 months ended October 5 2012 with like for like sales decreasing by 9.7%.

Profit before tax was £0.25m, compared to a loss of £0.72m in the previous 18 months.

As part of the restructuring, a review of the group's 85 stores took place following a significant proportion of its franchise network finding it difficult to operate satisfactorily in the challenging environment.

United Carpets believes that their franchise model is a critical advantage over more traditional retail networks as the business benefits from the entrepreneurial drive and motivation of the individual store owners.

The review saw the group reduce its store numbers, and this continued with eight further closures over the last six months. The group now operates 64 stores, primarily across Northern and Central England, 51 are franchises and ten corporate stores.

On the restructure, Peter Cowgill, chairman of United Carpets, said: "While the process is still ongoing, the board believes the long term impact will be beneficial as it will create a smaller, more resilient network of stores better able to trade successfully during what has been a prolonged downturn in market conditions."

Paul Eyre, chief executive of United Carpets, added: "These results show we are beginning to move in the right direction, we have reduced the size of the business in response to a very tough market environment and currently operate from 61 stores. This number may reduce further as we increasingly focus on our core portfolio of stores capable of operating successfully in this market. We are pleased to report a profit for the period and we hope to build on this going forward."

After coming through a particularly difficult period, the board gave its outlook on the future. Peter Cowgill, said: "Combined like for like sales performance has improved significantly for the 16 weeks since the period end but remains 2.9% down although Flooring like for like sales were positive prior to the recent fortnight of exceptionally hot weather.

"The group remains debt free, has reasonable cash reserves and stock levels and therefore can look forward with a degree of confidence that it can continue to make good progress in the current financial year on the basis it has established firmer foundations to meet the challenges of the current market environment."

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News: United Carpets readmitted to AIM

Rotherham-based United Carpets, the UK's largest franchised carpet retailer, has been readmitted to the AIM stock exchange after delivering its delayed final results for the period ended October 5 2012.

In August, the Bramley-based group had its shares temporarily suspended after admitting it would not be able to publish its full-year results on time. In October, a pre-pack administration deal saw United Carpets Group acquire the business and assets of its trading subsidiary United Carpets (Northern) Limited.

A review of the group's 85 stores took place following a significant proportion of its franchise network finding it difficult to operate satisfactorily in the challenging environment.

United Carpets believes that their franchise model is a critical advantage over more traditional retail networks as the business benefits from the entrepreneurial drive and motivation of the individual store owners.

Now, the group operates from 66 stores, primarily across Northern and Central England, of which 15 are currently corporate stores and 51 are operated on a franchise basis.

Following the administration, the management team has been negotiating new leases with existing landlords. Terms have been agreed for nearly two thirds of them with reduced rents benefitting the franchisees.

Peter Cowgill, chairman of United Carpets, said: "It became increasingly clear from the review that the financial support provided by the group to franchisees, which was originally intended to be temporary, was becoming unsustainable and that without substantial rent reductions a significant number of stores would be unable to continue to trade, despite the underlying strength of the core locations."

The company posted pre-tax losses of £2.6m for the 18-month period to October 2012, hit by the financial impact of closing stores and trading conditions continuing to be challenging.

Paul Eyre, chief executive of United Carpets, said: "Increased pressure from competitors, negative perceptions created by the administration of UCN, reduced levels of marketing funds due to fewer stores and unhelpful weather conditions have all combined to make a difficult environment for the Group to re-launch itself and like for like sales in the 19 weeks since the period end are down 11.1%.

"Whilst this performance is disappointing, the removal of the majority of the loss making stores means that the Group and its remaining franchisees are better able to survive this downturn in trade.

"While we are not anticipating an uplift in the market conditions in the near term, the Group is now better placed to benefit from an improvement in future market conditions."

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News: Pre-pack deal as United Carpets goes into administration

Rotherham-based United Carpets, the second largest chain of specialist retail carpet and floor covering stores in the UK, has been acquired out of a pre-pack administration.

The deal saw United Carpets Group acquire the business and assets of its trading subsidiary United Carpets (Northern) Limited.

Lila Thomas and David Acland, partners at the Preston office of Begbies Traynor were appointed joint administrators of the business on October 4 and the acquisition was concluded shortly afterwards.

The administrators have confirmed that jobs at the firm's head office in Bramley have been transferred to the new company.

In August, United Carpets had its shares temporarily suspended after admitting it would not be able to publish its full-year results on time.

With 85 stores, action was taken in June following a period of "extremely challenging" trading conditions for retailers.

Begbies Traynor was initially instructed to review the existing business due to increasing concerns regarding the performance of certain franchised and corporate stores. The review highlighted the fact an increasing number of outlets were loss-making and unable to meet outstanding payments.

Lila Thomas partner at Begbies Traynor, said: "The administration was a consequence of the challenging economic climate, but also the long-term lease commitments to the landlords of the stores.

"Attempts were made by the company to renegotiate lease terms, however, these proved unsuccessful. The administration of the company became inevitable. The subsequent sale was a positive result and has safeguarded the jobs of those working for the company."

The United Carpets Group was approached to make an offer for the business and assets out of administration and was successful in securing 73 stores as well as the head office site and its two warehouse premises.

In a statement to the stock exchange, the AIM-listed firm said: "The Board is disappointed at the need to take these steps but is confident that the core of locations remaining once the restructure is concluded will, with appropriately adjusted overheads, provide the foundation for a successful and sustainable business."

Matthew Brown and Ben Done from the Leeds office of DWF advised the purchasers, while John Joyce, Matthew Barker and Jason Scott of Addleshaw Goddard provided legal advice to the joint administrators.

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News: United Carpets shares suspended

Rotherham-based United Carpets, the second largest chain of specialist retail carpet and floor covering stores in the UK, has had its shares temporarily suspended after admitting it would not be able to publish its full-year results on time.

The Bramley-based business began action in June following a period of "extremely challenging" trading conditions for retailers.

In an update to the AIM stock exchange, United Carpets stated that a review of the group's 85 stores is being undertaken and this has led to the closure of six stores and a further 17 franchised stores being either taken back into the group or refranchised.

The review is ongoing and a further eight stores are expected to close over the next few weeks.

United Carpets believes that their franchise model is a critical advantage over more traditional retail networks as the business benefits from the entrepreneurial drive and motivation of the individual store owners.

However, the group stated previously that the: "challenging environment has led to a significant proportion of our franchise network finding it increasingly difficult to operate satisfactorily."

Negotiations have also commenced with the landlords of a number of other stores in an attempt to agree rent reductions in order to improve trading prospects and viability.

The statement added that: "the outcome of the ongoing negotiations with landlords is uncertain as is the possibility of further closures."

The impact of the closures will cost the group around £1m for impairment of property, plant and equipment as well as a significant non-cash increase in the provision against onerous contracts.

The company has decided to extend its current accounting period from March 31 2012 to September 30 2012. The board believes that "not taking this step would result in a set of accounts which would not give a truly representative picture of the group's ongoing operations."

The board concluded that they are disappointed by the need to take these actions.

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