Full-year results for United Carpets show huge profit for the retailer despite the currently challenging market.
Profit before tax surged by 84.5 per cent for the year ending March 31st 2010 compared to the same period in 2009, though this was primarily caused by a large increase in franchises from the previous year.
Like-for-like sales rose by one per cent, revenue was up 2.5 per cent to £27.47 million and store numbers only increased by two whilst the number of corporate stores almost halved.
Paul Eyre, CEO of United Carpets, said: “Revenues and profits both increased and we achieved our objective of rebalancing the store portfolio with the reduction in the number of corporate stores helped by a record number of new franchisees this year reflecting the continued attractiveness of our business model, even under current circumstances.”
Carpetright, a direct competitor of United Carpets, reported encouraging year-end results in June but then followed these with disappointing figures for the first quarter, with their underlying sales dropping 3.4 per cent.
Eyre continued: “The market environment remains challenging, with little improvement in volume across the housing market and an understandable sense of caution amongst consumers given the continuing economic uncertainty in the UK.
“This was reflected in a slow trading period since January which has continued into the current financial year.”