Firmer profits but weaker revenue at Carpetright

28th Jun 2016 11:42

(ShareCast News) - Flooring retailer Carpetright reported an uplift in underlying profit, but a decrease in revenue as market conditions remained tough in its full-year results to 30 April on Tuesday.The London-listed firm said underlying profit before tax rose 33.1% to £17.3m, from £13m, which it said was in line with market expectations.Group revenue decreased by 1.3% to £456.8m, which it compared with store space reduction of 5.4% associated with rationalisation of its estate.Underlying earnings per share rose 40.9% to 19.3p, from 13.7p, with Carpetright reporting a statutory profit before tax of £12.8m - an improvement of £6.2m over last year."I am pleased to able to report on another year of significant progress," said chief executive Wilf Walsh."The group has again delivered solid growth in profit, accompanied by consistent like-for-like sales growth in both the UK and Rest of Europe, whilst establishing real momentum with its plans to update and revitalise its business."Walsh said the group was continuing to trial a number of initiatives to broaden the appeal of the Carpetright brand and reposition the business.He said customer reaction to the initiatives trialled in four concept stores during the period was overwhelmingly positive, and management was excited about the opportunity of extending the initiatives to the wider estate from 1 July."Trading conditions in the early weeks of the new financial year have been more challenging, against strong comparatives in the prior year and in a market which is increasingly competitive, particularly in the UK."The outlook has been further complicated by the outcome of last week's referendum, Walsh said, and Carpetright was cautious about the impact the associated uncertainty will have on consumer confidence."Whilst we have a long journey ahead in transforming Carpetright, we have a clear direction and are confident that our plans for repositioning the business will yield positive results," he explained.