Apologies for the slow service today.
I thought it worked well yesterday, taking suggestions about which stocks to cover.
So if you have any suggestions, please let me know.
I provisionally intend to cover:
Share price: 185.5p (+6.6%)
No. shares: 67.9m
Market cap: £126m
I covered Carpetright recently, in the SCVR of Dec 13th.
That was the interim results, when the company reported:
We have made an encouraging start to the second half with a return to like-for-like sales growth in both businesses. As we enter the important January trading period, we remain comfortable with the range of market expectations.
It has certainly delivered on that today, confirming as follows:
Other bullet points:
- Number of UK stores reduces slightly to 427.
- Rest of Europe like-for-like, constant FX sales (the best measurement) are up 5.4% (in reported currency, up 22.4%).
- The CEO comments and lets us know that the store refurbishment plan is on track. Excellent news.
I haven't got much to add to what I said last time - namely, that I think there is a good chance that management can execute their investment plan, at considerable cost but with the opportunity of creating attractive medium-term benefits.
More than three quarters of CPR's operating cash flow in H1 was spent on the refurbishment plan. We can't expect much free cash flow here for now. But if it helps to restore strong performance, it will certainly have been worth it.
Share price: 216.5p (-2%)
No. shares: 87.5m
Market cap: £189m
Following the pre-close trading update in December, I warmed to this share, thinking that it could grow into its (then, 195p) share price.
The company is making that argument easier now:
When I ran the numbers on last year's financials, I thought that a fair estimate of the full-year result was about £7.1 million in PBT.
Those results were riddled with "non-underlying" costs, and today's report again insists on making some adjustments.
They are fairly simple, though: just £0.3 million…
Disclaimer:All my own views. I am not regulated by the FSA. No advice.