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Interim Results

Carpetright underlying pretax profits fall

13 December 2016 07:15

Carpetright's revenue fell by 3.8% to £222.3m and underlying profit before tax dropped to £5.0m (H1 FY16: £9.0m) in a challenging first half.

The group says it is accelerating its plans to transform the business and is encouraged by recent positive like-for-like trading.

Highlights:

- Net cash position of £0.4m at period end (H1 FY16: £4.1m).

- Comfortable with the range of market expectations for the group's full year profit

- Profit before tax of £4.1m (H1 FY16: £7.1m)

UK:

- Like-for-like sales declined by 2.9% (H1 FY16: +3.7%), reflecting uneven consumer demand in an increasingly competitive market.

- Underlying operating profit of £4.8m (H1 FY16: £9.4m).

Rest of Europe:

- Like-for-like sales decline of 1.5% in local currency (H1 FY16: +5.5%).

- Improvement in underlying operating profit to £1.1m (H1 FY16: £0.6m). Chief executive Wilf Walsh said: "We have had a challenging first half - the full impact of the UK decision to leave the EU remains unclear; consumer demand remains uneven; the market is extremely competitive and the impact of currency movements have combined to give us substantial trading headwinds. To address these challenges and revitalise the business, we have a programme of activities underway, but these will take time to deliver their full effect.

"The positive impact at the initial 49 refurbished stores has given us the confidence to accelerate this part of the programme. We are now scheduling investment to 150 stores by the year end - 50% more than the original target and representing over one third of our UK estate.

"We have made an encouraging start to the second half with a return to like-for-like sales growth in both businesses. As we enter the important January trading period, we remain comfortable with the range of market expectations. Looking longer term, we are confident that our plan to build on Carpetright's strong foundations, to modernise the business and to ensure we capitalise as market leader to the full is still on track."

Story provided by StockMarketWire.com

Related Company: CPR

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