Carpetright posts surge in first half profit
Carpetright has reported a surge in pre-tax profit after seeing an improved trading performance in the first half of its financial year.
In the 26 weeks ended 25 October, pre-tax profit rose by 252.6% to reach £6.7 million compared to £1.9 million in the same period in the previous year. Total revenue grew by 2.6% to £227.9 million in the period.
While like-for-like revenue in the UK increased by 6.5%, like-for-like sales in Europe fell by 3.3% in local currency terms. The group said trading across its Rest of Europe business had continued to improve with sales in local currency broadly flat year-on-year in the second quarter. This arrested the significant decline seen over the last 30 months, particularly in the Netherlands business.
Carpetright, which is currently undertaking a strategic review following the appointment of Wilf Walsh as chief executive, said plans to revitalise its brand were being finalised and would be implemented in 2015.
Walsh said the company now expects full year underlying pre-tax profits to be towards the upper end of current market expectations.
He added: “We believe that, with a well researched and well executed strategy, we can begin to reshape Carpetright to ensure the business fully capitalises on its market leading position.
“These changes will take time to take full effect but we are absolutely focused on maintaining the recent improvements in the performance of the Group, as well as devoting our energies to revitalising our brand and operations in line with contemporary customer expectations. As a team we are excited by the potential that exists and are concentrating hard on execution of this new strategy as we enter 2015.”
