Carpetright reports thumping losses

Flooring retailer Carpetright said half year losses plunged deeper into the red as weak consumer confidence continues to plague business, particularly in the Netherlands.

Flooring retailer Carpetright said half year losses plunged deeper into the red as weak consumer confidence continues to plague business, particularly in the Netherlands.

The group, which operates in the UK, Ireland, Belgium and the Netherlands, said pre-tax losses widened to £7.9m in the 26 weeks ended October 27th 2012 from a loss of £0.8% the year before. Group revenue for the six-month period fell 4.7% to £227.2m.

Carpetright took exceptional charges of £12.4m relating to lease provisions, net losses on disposal of properties and non-cash impairment of property assets, the group explained.

Underlying earnings per share rose to 3.8p compared to 1.2p while net debt reduced to £16.3m from £55m. No dividend has been recommended.

UK like-for-like revenues increased by 0.7% while like-for-like sales in the rest of Europe tumbled 10.1%.

Difficult trading conditions in the Netherlands persisted, where the floor coverings market remains weak, it said. Carpetright expects conditions to remain challenging.

"The group has remained cash generative, despite the sustained period of recessionary trading. However, short term economic conditions continue to remain uncertain and consequently the board continues to believe that it is appropriate to further reduce the group's reliance on debt rather than pay an interim dividend for this financial year," it said in a company statement.

Chief Executive Darren Shapland added: "While we expect trading conditions to remain challenging, we are confident that the combination of self-help initiatives will underpin the positive momentum of the group and our expectations for the year as a whole remain unchanged."

Carpetright said expectations for the year as a whole remain unchanged.

CJ

Recommended

Share tips of the week - 12 August
Share tips

Share tips of the week - 12 August

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
12 Aug 2022
Britain’s ten most-hated shares – w/e 9 August
Stocks and shares

Britain’s ten most-hated shares – w/e 9 August

Rupert Hargreaves looks at Britain's ten most-hated shares, and what short-sellers are looking at now.
10 Aug 2022
Aviva: One for income investors to tuck away
Share tips

Aviva: One for income investors to tuck away

Insurance giant Aviva is one of the highest yielding stocks in the FTSE 100 – and it’s cheap, too, making it a tempting target for income investors. R…
10 Aug 2022
Director dealings w/e 5 August: what company insiders are buying and selling
Stocks and shares

Director dealings w/e 5 August: what company insiders are buying and selling

Directors’ share dealings can often give investors an insight into the sentiment of company insiders. Here are some of the biggest deals by company di…
9 Aug 2022

Most Popular

Don’t listen to the doom-mongers – the future is bright
Economy

Don’t listen to the doom-mongers – the future is bright

With volatile markets, raging inflation and industrial unrest, it may feel like things are bad and likely to get worse. But the end of the world is no…
15 Aug 2022
Are UK house prices set to fall? It’s not so simple
House prices

Are UK house prices set to fall? It’s not so simple

Figures suggest UK house prices are starting to slide, but we shouldn’t take these numbers at face value, explains Rupert Hargreaves.
11 Aug 2022
How solar panels could lower your energy bill
Energy

How solar panels could lower your energy bill

Solar-panel installation firms are reporting a four-fold increase in orders this year compared with 2021. Ruth Jackson-Kirby explains how solar can he…
14 Aug 2022