Carpetright rolls out 6% interim profit rise

Carpetright posted a 6% jump in first half pre-tax profit as revenue rose and the company said it was on track to meet its full year expectations as the new, smaller high street format begins to bear fruit.

For the 26 weeks to the end of October, pre-tax profit increased to £7.1m from £6.7m in the same period a year ago, as revenue grew 1.4% to £231.2m.

The carpet retailer said like-for-like sales in the UK were up 3.7% while sales in the rest of Europe increased by 5.5% in local currency terms.

The group said it has seen encouraging initial results from four retail concept stores, as it trials a new shop fit and brand identity aimed at inspiring customers.

Chief executive Wilf Walsh said: “I am pleased to be able to report the group continued its positive like-for-like sales performance and grew profits significantly during the first half. In parallel, we made good further progress with a wide-ranging programme of initiatives to extend the appeal of the Carpetright brand and address significant legacy property issues.”

He said the trial of a new retail concept and brand identity was producing valuable customer insight.

A comprehensive customer research study will be completed by the end of January 2016, giving the company a more detailed picture which will inform its decisions on which elements to roll out across the existing estate.

At 0907 GMT, Carpetright shares were up 4.5% to 490p.