Carpetright full year profits slump
Carpetright, the UKs biggest floorcoverings retailer, has reported a 76% drop in its full-year underlying profit as its sales were hit by weak consumer confidence in the UK.
In the 52 weeks to 28 April 2012, underlying pre-tax profit fell to £4 million from £16.9 million in the previous year. UK total revenue dropped 3.8% to £381.6 million while UK like-for-like sales were down 0.2% over the year following a first-half decline of 2.4%. The group’s total revenue fell 3% to £471.5 million.
Carpetright, which has 490 stores, said a fragile consumer confidence and difficult trading conditions had led to a reduction in sales volume although there was "cause for optimism" in recent trading.
The group said: "We are encouraged to see a positive impact from the self-help actions taken during the year, whilst recognising within our plans that economic conditions will remain difficult. The group is well positioned to deliver future profitable sales growth once consumer demand improves."
Carpetright has recently appointed former Sainsbury’s director Darren Shapland as its chief executive who has returned to the group to work alongside its chairman Lord Harris.
Commenting on the results Shapland said: "Whilst it has been seven years since I was previously in an executive role here, Carpetright is a business I know well. Notwithstanding the on-going challenges of the difficult consumer environment, I have been encouraged by what I have seen so far in the six weeks since becoming chief executive."
Carpetright said it remained committed to delivering long term sustainable growth by improving and developing its flooring ranges and services, developing its bed proposition, and managing and investing in its store portfolio. It also plans to reach more customers through additional channels, and will continue to focus on cost control and cash management.
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