DIYWEEK.net

 

Carpetright restructure produces positive results

Published: 26 June 2019 - Kiran Grewal

The carpet and floorcoverings retailer, Carpetright, has announced its "business turnaround [is] on track with an encouraging return to positive like-for-like sales growth" in its full year results, following the group’s restructuring last year which saw pre-tax losses at Carpetright shrink to £24.8 million in the year to April 27, down from a loss of £69.8 million last year aftergroup said it saw "significant improvement" in second half trading, particularly Q4, with a return to like-for-like sales growth in the new financial year.

The UK operations saw 80 stores closed as part of the CVA and 23 stores retained on a nil rent basis, however Carpetright has reported like-for-like sales in the first eight weeks of its new financial year as 8.5% up against the previous year, while in the rest of Europe it rose by 4.3%.

 

Commenting on the results Wilf Walsh, Chief Executive, said: "2018/19 was a transitional year for the business as we took tough but necessary action to address our legacy property issues and restructure the UK store estate. This difficult task was carried out against the backdrop of a challenging trading environment but was essential to put the business back on the path to sustainable profitability.

"From a trading standpoint it was, as expected, a year of two halves, with the first six months reflecting the impact of the CVA implementation, followed by a significant improvement in the second half and, in particular, during Q4. We are pleased to report today that this positive trend has continued into the new year with a return to like-for-like sales growth in the first eight weeks of the period, when UK LFL sales grew by 8.5%.

"We remain the clear number one player in floorcoverings, having maintained our market leadership during an exceptionally challenging period, and our brand attributes remain strong. Our work is far from finished, and while economic and political uncertainties cloud the near term outlook for the retail sector, our turnaround plan is very much on track."

 

Comments


(Your email address will not be published)
Already Registered?
Sign In
Not Yet Registered?
Register
Printable View E-mail Bookmark
*

Latest reader comments

re: Carl Kammerling Fusion 2021 Trade Promotion – Filled with exciting new deals!

MIKE
GOOD AFTERNOON,WE USED TO DEAL WITH YOUR COMPANY MANY YEARS AGO, BUYING LARGE STOCKS OF DELETED AND RETURNS ITEMS.IF YOU HAVE ANY CLEARANCE ...

re: Toolbank

Bilal Ali
Hi Trust you are doing great. My name is Bilal Ali. I am the owner of Azaan International Ltd, a company specialized in products. We are ...

re: Woolworths staff reunited by new website

John Zullo
Hi I'm trying to find Lisa assistant manager of woolworths in the metro centre 1999 I only now her by her 1st and middle name Lisa Marie ...

re: Planning application submitted for new Homebase store in Abingdon

Gel
They closed their store last year!http://www.oxfordmail.co.uk/news/17570442.homebase-abingdon-starts-closing-sale/...

re: Latest update on Green Homes Grant and implications for homeowners and landlords

John Hart
After applying for a green homes how long will it take for a decision? thanks...

Most read stories

https://www.diyweek.net/carpetright-restructure-produces-positive-results