20th Dec 2019 13:31
(Alliance News) - United Carpets Group PLC on Friday reported a "satisfactory" performance in a tough retail environment in the UK.
For the six months to September, the floor coverings retailer reported a 36% rise in revenue to GBP14.8 million, mainly driven by acquisitions. Like-for-like growth was 1.8%.
Profit before tax and accounting adjustments was GBP154,000, up 27% on the year prior. Including the accounting change United Carpets was at breakeven, after a GBP4,000 loss the year before.
The Rotherham, Yorkshire-based company has kept the interim dividend flat at 0.135 pence per share.
"A small improvement in profit before tax and IFRS 16 adjustments is a satisfactory performance in a challenging market environment with consumer confidence constrained by political uncertainty," said Chief Executive Paul Eyre.
IFRS 16 is an accounting rule government the treatment of leases.
"Nevertheless, the group generated a significant increase in revenues, primarily driven by a small increase in the average number of stores trading compared to the prior period and the group's fledgling instalment payment model, a new business channel for the group with the potential to become an important future profit centre. Importantly, the fundamentals of the group remain sound," Eyre added.
Since the end of September, however, trading has been more difficult, United Carpets said, with like-for-like sales in the 11 weeks since September 30 down 3.5% on the year before. This, it said, was due to uncertainty over Brexit and the UK general election.
"While the board remain confident in the United Carpets model, the outcome for the full year could be significantly influenced by the ultimate conclusion to Brexit and also in the event of any prolonged period of significant adverse weather conditions. The board therefore remains cautious over the outcome for the full year," Chair Peter Cowgill said.
Shares were 1.0% lower on Friday in London at a price of 5.20 pence each.
By George Collard; [email protected]
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