UCG United Carpets Group Plc

RNS Number:5124G
United Carpets Group plc
29 October 2007


                            United Carpets Group plc

                       ('United Carpets' or 'the Group')


                                 AGM Statement


'The following statement was made at the Annual General Meeting of United
Carpets held today at 10.00am.


We are pleased to announce that the Group is continuing to trade in line with
expectations. This reflects the strategic decision to focus on the maximisation
of revenues from existing stores and a policy of steady growth in the number of
our franchisees.


The positive steps that were taken last year to improve the existing franchisee
base are now largely complete, with only one franchisee being replaced this
financial year. Since our year end, a new franchisee store has opened in
Northenden in addition to two corporate stores in Wetherby and Ilkeston.


Currently, there are 61 stores, 13 are corporate stores managed by United
Carpets and the remaining 48 are run by franchisees. In the future, we aim to
maintain a core of at least 6 corporate stores and are actively sourcing quality
franchisees for the remainder.


Although the retail environment remains challenging in general, with consumer
confidence impacted by increases in interest rates and the recent volatility in
the financial markets, United Carpets' focus on quality, low cost items has
meant that this has not had a significant impact and the business overall is
continuing to perform well. Our core floor coverings division remains the
primary driver of the Group's improved performance supported by our beds
division, which we continue to develop through both expansion in range of
products available and a more cost efficient delivery service from a central
depot.


From the beginning of September, the Group introduced an in-house cutting and
distribution service which is already beginning to benefit our product offering
and competitiveness whilst also providing opportunities to enhance margin.


We have a strong pipeline of new stores and potential franchisees and we expect,
in the second half, to open more stores targeting sites across Northern and
Central England. We continue to support the Group's sales performance with
co-ordinated television, print and radio advertising campaigns, run throughout
the year in areas where store numbers have reached a critical mass and further
store openings will increase our economies of scale.


Initial results from our key trading period (October to December) are
encouraging and looking ahead, the Group's longer term prospects remain strong
underpinned by a robust balance sheet with bank balances of #2.7m.


We will report our interim results for the 6 months ended 30 September 2007 in
December 2007.'


Enquiries:


United Carpets 01709 579450
Paul Eyre, Chief Executive
Ian Bowness, Finance Director


Cardew Group 020 7930 0777
Tim Robertson
Jamie Milton



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