Published on 28 - June - 2011
Profits plunge further at CarpetrightCarpetright has seen a 45% plunge in UK underlying operating profit for the year to April 30, 2011.
In its preliminary results statement released today, the company revealed total revenue in the UK and Ireland fell 4.9% to £404.5m, a like-for-like decrease of 6%.
Total group revenue declined by 5.8% to £486.8m, while underlying profit before tax dropped 40.1% to £16.9m.
The company, which closed 27 stores in the UK and Ireland during the period, has net debt at year end of £65.7m.
Carpetright's European stores (in The Netherlands and Belgium) also saw profits decline by 29.2% to £6.8m.
Chairman and chief executive Lord Harris of Peckham said: "In my statement last year I said I expected consumer demand to remain subdued in the coming year and this indeed proved to be the case. As a result, the group faced very challenging trading conditions in the year under review, with fragile consumer confidence producing a weak floor coverings market, leading to a reduction in sales volume and profitability.
"Against this background, we have taken a number of management actions to adapt the product proposition whilst retaining competitiveness in the market. These have been completed alongside activities to address the cost base and to review the shape and size of our future store estate."
He added: "Looking forward, I see no respite from the challenging environment over the next year. That said, I remain confident the group is well positioned to deliver future profitable sales growth once consumer demand improves."
The company's decision not to pay a final dividend "reflects the weaker than anticipated profitability in the second half", said Lord Harris, making the total dividend for the year 8p per share.
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