United Carpets reports four-fold increase in profits
Carpet and flooring retailer United Carpets has reported a four-fold increase in its half-year pre-tax profits following a substantial restructuring of the business over the last 12 months.
In the six months to 30 September, pre-tax profits rose to £452,000 from £113,000 in the same period last year.
Like- for-like sales fell by 1.6% which was an improvement on the six months ending 31 March 2013 when like-for-like sales dropped by 9.7%. The retailer said its like-for-like sales had benefited from a smaller, more focused store network following a cull of underperforming stores, although consumer spending still remained tight. There was a further improvement in the 11 weeks since the half year end with like-for-like sales increasing by 2.4%.
Network sales, including the value of retail sales by the firm’s franchisees reached £28 million compared to £34.9 million in the same period last year. Revenue, which as in previous years included marketing and rental costs incurred by the group and recharged to franchisees, was £10.3 million.
Never Miss a Retail Update!During the period, the group closed a further six stores and opened two. This took the total number of stores to 60, 51 of were franchised.
Of the 60 stores currently trading, 42 leases have been completed, terms have been agreed in principle for 12 stores and six stores are still under negotiation. The retailer said it anticipates a small number of further closures although key changes as part of the restructuring plan have largely been made leaving the store network in a stronger position.
United Carpets chief executive Paul Eyre said: “These results should give shareholders increasing confidence in the future of the business. The restructuring programme, begun last year and continued into this year, has reduced the number of stores to 60, down from a peak of 86 stores, removing those which were no longer viable. As a result the business is in a much better position with which to operate successfully in what continues to be a challenging market.”
