Carpetright moves into the red as Europe struggles

Suzie Neuwirth

CARPETRIGHT today unveiled an annual pre-tax loss of £5.1m, down from £13.5m the previous year, due to property impairments and challenging European markets.

The UK carpet retailer posted exceptional charges of £14.8m due to losses on disposal of properties, onerous lease provisions and non-cash impairment of property assets.

Like-for-like revenues rose by 2.2 per cent in the UK but declined by 11 per cent in mainland Europe, with particularly difficult trading conditions in the Netherlands.

“The group grew underlying profits and generated cash during the year, with an encouraging increase in UK retail store like-for-like sales and a significant improvement in gross profit percentage year-on-year,” said chief executive Darren Shapland.

“In the Rest of Europe, trading conditions in the Netherlands remained difficult whilst progress has been made in the recovery plan for the Republic of Ireland.

“While we expect trading conditions to remain challenging, we are confident that the combination of these self-help initiatives will underpin the positive momentum of the group.”