The collapse of all but a rump of the Allied Carpets chain is likely to benefit not just market leader Carpetright but AIM-listed United Carpets.
A new Allied company is retaining 51 of 217 stores and may acquire more from administrator BDO Stoy Hayward in the next few weeks.
United Carpet’s house broker Seymour Pierce reiterated its buy advice. Analyst Freddie George said 42 of United Carpet’s 76 shops are close to Allied stores. “On our estimates, the company could pick up to £3m in sales – assuming that 50 per cent of the Allied Carpets stores close – which equates to approximately 10 per cent of total sales,” he said.
United Carpets will publish full-year results on July 30. George expects profits of £1.2m. He said: “The company has a relative strong balance sheet with net cash forecast at £1m at end of March 2009.”