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

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Oil producers are back at their Covid-19 lows – is it time to buy?
Oil

Oil producers are back at their Covid-19 lows – is it time to buy?

With demand for oil hammered by Covid-19 and talk of “peak oil demand”, there are lots of good reasons to be bearish on oil producers. So, asks John S…
22 Sep 2020
The rising dollar is proving bad news for most other assets – will it last?
Investment strategy

The rising dollar is proving bad news for most other assets – will it last?

Precious metals, stocks and pretty much every other asset has taken a tumble as the US dollar strengthens. Dominic Frisby looks at how long this trend…
23 Sep 2020
Why you should stuff your end-of-pandemic portfolio with Chinese stocks
China stockmarkets

Why you should stuff your end-of-pandemic portfolio with Chinese stocks

For an end-of-pandemic portfolio, you need assets that can cope with today’s volatility. And that, says Merryn Somerset Webb, means Chinese stocks.
14 Sep 2020