Britain's biggest flooring chain, Carpetright, today reported a 28 per cent drop in half-year profits.
The retailer, which boasts 584 stores in the UK and Ireland, said it remained cautious about economic conditions over the rest of this financial year and into 2011 after sales fell 4 per cent to £248 million in six month.
Despite the slide in underlying profits to £10 million, chairman and chief executive Lord Harris of Peckham said Carpetright was in a strong position to deliver sales growth when consumer demand in the sector returns.
Total revenues in the UK and Ireland declined by 2.7 per cent to £207.6 million, while underlying operating profits in the UK and Ireland fell by a third to £9.6 million, Carpetright added.
Matthew McEachran,an analyst at Singer Capital Markets, said the figures were in line with expectations, although he pointed out that the recent adverse weather conditions might have had a hand in trading figures:
‘We expect the snow to have had an adverse effect in recent weeks and whether or not this can be clawed back over the peak trading season remains to be seen,’ he said.