Carpetright has warned that trade is tough as it revealed a 7.6 per cent increase in underlying pre-tax profit to £62.1 million.
Total group revenue at Carpetright rose 9.6 per cent to£521.5 million. In the UK and Ireland, revenue climbed 8.3 per cent to£452.7 million. In the rest of Europe Carpetright’s revenue rose 19 per cent to£68.8 million. However, like-for-like sales fell 2.7 per cent in the UK and Ireland. Actual pre-tax profits, including exceptional items, were down to£59.5 million from£67 million.
Carpetright chairman and chief executive Lord Harris of Peckham said:“There is no doubt that the UK floor coverings market [has become] more difficult, in line with other housing and DIY related sectors. I believe that the next year will be one of the most difficult I have seen.
He added: “However, Carpetright is well placed to weather this period with its strong competitive position, clear UK and European strategic plans and continued focus on margin growth and strong cash generation.”
Carpetright said the profit decrease came principally from non-recurring costs in the year. The retailer recorded a profit on property disposals of£7 million, but this was offset by non-recurring items from the acquisition of Storeys and costs associated with its new distribution centre.