Carpetright profit slump blamed on pre-election jitters
CARPETRIGHT has blamed uncertainty caused by the general election and fears over tax rises for its profit warning yesterday.
The company, which is regarded as a bellwether of UK high street trade, said its profits for the year to 1 May would be below forecasts. Prior to the update analysts were forecasting a consensus pre-tax profit of £36.3m up from £17.2m the previous year.
Carpetright said sales at UK and Ireland stores open over a year increased 1.4 per cent in the seven weeks to 20 March. But the company’s share price tumbled after its bleak trading update, closing 10.9 p er cent lower at 825p.
Finance director Neil Page said: “While the bad weather in January clearly impacted sales we would normally expect to recover these once conditions returned to normal.
“The fact that this has not happened is a reflection of the consumer environment, characterised by caution over the forthcoming general election, confirmed prospective increases in taxation and the continued uncertainty over the economic outlook.”