20th Aug 2014 15:58
LONDON (Alliance News) - United Carpets Group PLC Wednesday said group sales for the first 20 weeks of the current financial year have improved a little, on a like-for-like basis, since the outlook statement it provided alongside its full-year results in late July.
In a statement, United Carpets said overall trading continues to be in line with market expectations.
United Carpets provided the trading update alongside the results of a general meeting at which shareholders approved a capital reduction.
The chain of specialist retail carpet and floor covering stores in the UK said it anticipates the capital reduction will result in the creation of distributable reserves of about GBP4.4 million.
That expectation is based on an assumption of no "material change" in the financial position or prospects of the company, and is subject to any undertakings which the company may be required to offer the UK High Court for the protection of creditors.
"Once the retained earnings deficit of GBP3.4 million is extinguished, the sum of up to GBP944,000 will be potentially available for future distribution," United Carpets said.
United Carpets expects the capital reduction to take effect in September.
United Carpets shares were Wednesday untraded at 8.375 pence.
By Samuel Agini; [email protected]; @samuelagini
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