Carpetright Plc Boosts Profit

Shares in Carpetright (LSE: CPR) shot up over 2% in trade today, following the release of the firm’s preliminary results for the 52 weeks ended 27 April 2013.

Europe’s leading specialist carpet and floor coverings retailer announced that underlying pre-tax profit advanced 142.5% year on year, from four million in 2011/12 to 11.4 million in 2012/13. This was helped by a 2.2% increase in like-for-like revenues in the UK.

Operations in the rest of Europe didn’t fare so well, with revenue in local currency declining 10.4% and like-for-like sales down by 11%. However, that didn’t stop the group generating cash and reducing its net debt, the latter down 46.6% to £10.2m.

Chief executive Darren Shapland commented:

“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.  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.

 “The success of our self-help activities in improving Group performance during the period was particularly encouraging, demonstrating that a focus on factors within our control can yield good results.

 “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.”

Shareholders are holding out for confirmation on the dividend, after seeing a basic loss per share of (9.8p). However, if you’re looking for another company that should soar in price, we’ve pinpointed our favourite growth share and produced a special report in which we evaluate its finances, risks and growth prospects going forward.

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> Sam does not own shares in Carpetright.