Expansion to continue, but at slower pace
United Carpets is confident it can drive growth by advancing northwards in the New Year despite posting flat interim results today.

Like-for-like sales rose just 0.3 per cent in the six months to September 30. Floor covering like-for-like sales climbed 2.1 per cent but beds dropped-off by 11.5 per cent.

Pre-tax profits declined to£0.47 million from£1.23 million for the same period in 2004.

However, the floor specialist pledged to roll-out its retail estate in 2006 to ready itself for a recovery of the flagging furniture marketplace.

Courts, Durham Pine and Allders are among a host of big-ticket retail casualties hit by low consumer confidence this year.

The retailer terminated six poorly-performing franchises in the first half to increase control of stores. One has since been re-franchised out.

Chief executive Paul Eyre said: 'We have held back the new opening programme during this period, allowing the management team to concentrate their efforts on those stores most severely affected by the downturn.'

'The group intends to continue the roll-out of its franchise concept across Northern and Central England, but given the challenging market conditions, will do so at a more cautious rate than originally envisaged,' he added.

Seymour Pierce analyst Richard Ratner said: 'The company has done well on the sales front, although management must bear the responsibility for the performance of beds during the first half, as this part of the offer leaves a lot to be desired.'

'The current sales figure on a like-for-like basis is, against other floorcovering retailers, very good, with sales for the 11 weeks to December 15 up 4.7 per cent, with floorcoverings up 4.5 per cent and beds up 6.6 per cent,' he added.

United Carpets, which has a 58-strong portfolio, opened five stores in the first half.