United Carpets confident as it announces increase in pre-tax profits

UNITED Carpets has today said the business is “moving in the right direction” as it reports an increase in pre-tax profit.

The South Yorkshire specialist carpet and floor covering firm reported a pre-tax profit of £0.25m (18 months ended October 5 2012: Loss of £0.72m) in its preliminary results for the six-month period ended March 31.

Earlier this year, United Carpets’ shares were restored to trading on the stock market after being suspended after the pre-pack administration of its main trading business.

Paul Eyre, chief executive, said: “These results show we are beginning to move in the right direction, we have reduced the size of the business in response to a very tough market environment and currently operate from 61 stores.

“This number may reduce further as we increasingly focus on our core portfolio of stores capable of operating successfully in this market. We are pleased to report a profit for the period and we hope to build on this going forward.”

Chairman, Peter Cowgill, said the Bramley-based group has been making “steady progress” following the restructuring which began in the second half of 2012.

He said: “To address the significant number of underperforming franchised stores and better protect the group’s future, the board decided during 2012 to close a number of stores and re-evaluate the business, creating a smaller entity, better able to operate successfully in the current retail environment.
 
“Sales for the period on a like for like basis were down by 9.7% during a difficult period for the retail sector and significant change for the group. Profit before tax was £0.25m and the group is now better placed to improve on this performance in the current financial year.”

Mr Cowgill said that whilst this has been a particularly difficult period for the business, it is confident the actions taken are in the long-term interests of the business and shareholders.
 
He said: “We remain focused on agreeing terms with those stores which will continue as part of the group and enhancing sales from the core portfolio.
 
“Trading conditions have not materially improved, competition remains tough and consumer spending is tight with no real improvement in the ‘feel good’ factor so critical to retailers. That said, United Carpets is an experienced and specialist retailer providing an excellent shopping experience for customers looking for a combination of good quality and good value.”