United Carpets’ pre-tax profit fell from £1.73m to £1.36m in the year to March 31, although the figure came in ahead of expectations.
Like-for-like sales grew 1.2 per cent, while revenues jumped 26.5 per cent to £26.8m.
Network sales, which include retail sales in United Carpets’ franchises, increased 10.1 per cent to £65.1m.
Within the like-for-like sales performance floorings rose 0.5 per cent while beds increased by 9.2 per cent.
In the 16 weeks since year end, floorings declined 4 per cent against “relatively tough comparatives”. United Carpets said that “while this is disappointing it represents above average performance for our sector”.
Beds like-for-likes increased 8.2 per cent in the 16 week period.
Chief executive Paul Eyre said: “We are pleased to be able to report on a solid trading performance, in what are very challenging market conditions. We continue to benefit from our focus on offering good quality products at affordable prices and the advantages of operating a franchise structure.
“The majority of United Carpets stores are run by the owner and are therefore highly focused on succeeding. Reflecting the resilience of our retail model, like-for-like sales remained positive which compares favourably to the wider retail market. Entering the current year we are trading in line with expectations, however, we expect market conditions to continue to be tough.’
United Carpets said a “key operational focus” will be to continue franchising existing corporate stores.
United Carpets operates 80 stores, up from the 65 it had this time last year. These comprise 23 corporate stores and 57 franchise stores.