United Carpets profits hit by Brexit fears

7th Mar 2019 10:40

(Sharecast News) - Floor coverings retailer United Carpets expects profits to fall almost two-thirds in its current financial year as Brexit fears weaken consumer confidence.In its interim results, United Carpets warned that trading had been "challenging from the outset", with the exceptionally warm summer and England's unexpected World Cup run combining to impact first-half trading, requiring increased marketing investment and support for its franchisee network while it was also continuing to invest in online activities and future business development opportunities.Since December, the AIM-listed firm said it had "worked hard" to successfully maintain like-for-like sales against a "well reported and increasingly difficult backdrop" in the run-up to Brexit, which it said had "weakened consumer confidence, created a softer housing market and led to an environment in which all retailers are competing aggressively for every sale".United Carpets now expects pre-tax profits to come in somewhere between £550,000 to £650,000 - a drop of as much as 64% year-on-year.Looking forward, United said it was "confident" that the fundamentals of its business remained sound and felt its "substantial cash balances and virtually no debt" left it well placed to take advantage of any improvement in market conditions.As of 1040 GMT, United Carpets shares had slid 4% to 4.80p.