Carpetright plots further expansion
Carpet retailer Carpetright today outlined plans to bolster its presence in smaller towns as it posted a 33% rise in annual profits.
The Rainham, Essex-based group said the small store format – which it has been developing this year – allowed it to trade in areas previously dominated by independent stores.
Despite difficult trading conditions, Carpetright said it had been an “encouraging” year and was well placed to grow market share, sales and profits.
Carpetright, which has 364 stores and 38 concessions in the UK and Ireland, saw pre-tax profits rise to £67.1m (€100.6m) in the year to May 1.
This included record results from its UK and Ireland operation, where operating profits increased by 14.1% to £64.8m (€97.2m).
A poorer performance in the first half was offset by a 4.1% increase in like-for-like sales in the second half, as the group ran a number of successful promotions.
Many of Carpetright’s new openings during the year were in its new small store format in towns. The group said it was now searching for 80 to 100 additional sites over the next three to five years.
“We believe this will enable us to gain market share in towns and areas where we have previously not been represented and will give us an excellent platform for further growth,” the company said.
Although laminate and vinyl was a growing part of the flooring market, the group said carpet still made up the majority of sales.
Carpetright, which employs some 3,000 staff, also said that the European Benelux business it bought in 2002 recorded its first underlying operating profit.
Sales in Holland and Belgium improved throughout the year and helped Benelux post underlying operating profits of £1.8m (€2.7m) for the year to April 30, compared with losses of £2.9m (€4.4m) in the 10 months of its last financial year.
Carpet Express, jointly bought by Carpetright and Associated Weavers International this March, made underlying operating losses of £600,000 (€900,000) in just over seven weeks of trading.
Group turnover rose to £453 million from £436m (€679.6m) last year, while the total dividend was raised by 18.9% to 44p.
