United Carpets hails stronger position following restructure

UNITED Carpets has today said its restructure has put the business on a stronger footing to operate in what it described as a challenging market.

For the six months to September 30, the South Yorkshire specialist carpet and floor covering firm reported pre-tax profit of £452,000 compared to £113,000 in the prior year period on revenue of £10.3m.

Like for like sales decreased by 1.6%, but were up 2.4% since the period end to December 12.

Following the restructuring which began in the second half of 2012, the company said it has established a sounder, debt free base consisting of a smaller more profitable portfolio of stores on which to build going forward.

Paul Eyre, chief executive, said: “These results should give shareholders increasing confidence in the future of the business. The restructuring programme, begun last year and continued into this year, has reduced the number of stores to 60, down from a peak of 86 stores, removing those which were no longer viable. As a result the business is in a much better position with which to operate successfully in what continues to be a challenging market.”

Chairman Peter Cowgill said: “Whilst there has been some encouraging signs of an improvement in the economy, this does not yet appear to have materialised in consumers feeling better off. We are therefore not anticipating an upsurge in consumer spending in the short term; instead we hope to gain market share from a continued focus on customer service and providing genuine value for money offers on good quality products.”