Member Article

Rotherham's United Carpets Group reports improved results after restructure

Rotherham’s United Carpets Group plc has reported improved results as a result of a major restructure.

Profit before tax was £940k, whilst the 6 months ended 31 March 2013 pretax profit reached £250k (prior to this year results posted were for 6 months).

This comes after United Carpet’s network of stores went down to 57 from over 80 stores two years ago, of which 46 are franchised and 11 are run as corporate stores.

The Group recorded a 2.2% increase in like for like sales performance for the year which was according to the company “a satisfactory performance.”

The UK market has been better and continues to show signs that it is recovering although we believe the market remains fragile with a number of hurdles still to come such as increases in interest rates which are expected in the not too distant future. We are therefore looking to continue to develop the business whilst endeavouring to ensure that it does not become over extended.

Paul Eyre, Chief Executive, said: “We are pleased to be announcing a good uplift in profitability, helped by an increase in like for like sales as consumer confidence increases slightly and the housing market also improves.

“This trading performance also reflects the benefits of the management actions taken two years ago to reduce significantly the size of the store portfolio, removing the majority of underperforming stores, re-focusing the business on a core network of stores and giving the Company a stronger financial base from which to operate.

“We have removed the majority of the weaker stores from our portfolio, we have no debt and an improving balance sheet.

“Consumer demand has shown some signs of improving although the second quarter of the calendar year appears to have softened a little compared to the first quarter as shown by our sales in the first 16 weeks of the current year which, in total, are 2.3% down on a like for like basis.

“Trading has been a little patchy but we believe the overall picture is generally moving forward, underpinned by higher levels of employment and a more active housing market.

This was posted in Bdaily's Members' News section by Clare Burnett .