DIYWEEK.net

UK profits at Carpetright improved in the half year to October 26 2013, but they slumped by a third at the company as a whole.
Underlying operating profit in the UK rose 5.8% over the same period last year, from £5.2m to £5.5m, but overall, it was down 24.1%, from £5.4m to £4.1m. And underlying pre-tax profit overall slid 33.3%, from £4.5m to £3.0m.

UK sales dipped 2.2% to £185.0m and in the rest of Europe they fell 2.4% to £37.2m, bringing group revenue to £222.2m, down 2.2% from the equivalent 2012 period.

The number of Carpetright stores was cut by four during the period, bringing the total to 474, and another 38 outlets were modernised, bringing the total number of refurbishments to 224.

Commenting on the results, executive chairman Lord Harris said: "Against a backdrop of volatile trading conditions, our first-half performance reflects an improvement in profits in the UK, driven by the continued success of our self-help initiatives, offset by a move into loss in our Rest of Europe business, primarily from a continuation of very difficult trading conditions in the Netherlands.

"Historically, the trend in UK mortgage approvals has been a useful lead indicator of consumer demand in our sector, bearing a positive correlation with floorcovering sales. Approvals began to show encouraging signs of improvement during the first half, although this is from a very low base by historic standards. In the past, we have seen a lag of around six months before the impact of a change in the mortgage approval trend has been reflected in our sales."