United Carpets posts profit downturn
United Carpets has seen its first half pre-tax profit decline to £121,000 from £589,00 in the same period in the prior year.
While revenue in the six months to 30 September rose to £10.81 million from £9.97 million in 2017, like-for-like sales dropped by 1.8%.
In a statement, United Carpets said its trading had been impacted by this year’s hot summer and England’s good run in the World Cup. While investment in its brand, franchise network and its online offering all helped to increase revenue, the activity also reduced profitability.
Paul Eyre, United Carpets chief executive, said: “As we said in our September trading update, over the summer months the exceptionally warm, sunny weather and the World Cup combined to make the first half of this financial year a very challenging trading period. We worked hard to maintain sales levels but to do so required increased investment in marketing and further support for the franchise network. In addition, we have continued to invest in online activities and to explore future business development opportunities to better prepare the group during a challenging period of changing shopping habits.”
The company said trading has improved since the end of the half year with like-for-like sales edging up 0.1% in the first 11 weeks of the second half.
Looking ahead, United Carpers chairman Peter Cowgill added: “While the continuing and increasing uncertainty surrounding the Brexit negotiations means that the board remains cautious, the encouraging signs from recent trading performance, if sustained, should result in a better second half and a reasonable outcome for the year.”
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