Carpetright has delivered a strong turnaround in UK sales but a dire performance in Europe and write-downs in the value of its property saw it post a full-year loss.
The floor-covering retailer struck a cautious note on the nascent recovery in the housing market, adding “it remains premature to call a wider recovery in the economy”.
Carpetright posted a 2.2% uplift in its like-for-like revenue over the year to April 27, boosted by store refurbishments, improved carpet ranges and strong sales of beds.
Chief executive Darren Shapland said that its “self-help measures” had contributed 3% to its sales turnaround. He said: “We think the market is flat at best. The big elements of growth are coming from modernising the estate.”
But its underlying sales tanked by 11% in Europe, dragged down by tumbling revenue at its embattled business in the Netherlands.
This contributed to Carpetright sinking to a £5.1 million loss, although the main damage done to its bottom line came from property charges, including onerous lease provisions.
