Profits edge higher at United Carpets

United Carpets posted a small increase in profits on Friday, despite political uncertainly dampening consumer confidence during the year.

The carpet retailer said revenues for the year to 30 September rose 36.4% to £14.75m, while like-for-like sales, which strip out the net impact of new openings, were up 1.8%. Pre-tax profits increased to £154,000 from £121,000.

Earnings per share after IFRS 16 adjustments were -0.01p, compared to -0.03p a year earlier. The IFRS 16 accounting standard, which changes the way leases are treated, was introduced at the start of 2019.

The group also updated on current trading and said underling sales in the 11 weeks since 30 September were down 3.5%.

Chief executive Paul Eyre said: "A small improvement in profit before tax and IFRS 16 adjustments is a satisfactory performance in a challenging market environment, with consumer confidence constrained by political uncertainly.

"Nevertheless the group generated a significant increase in revenues, primarily driven by a small increase in the average number of stores trading compared to the prior period, and the group’s fledgling instalment payment model.

"Importantly, the fundamentals of the group remain sound. We have a strong network of mostly franchised stores, offering an excellent range of good quality, great value products, making us well placed to benefit from any uptick in the market environment."

Shares in the AIM-listed company were off 1% at 5.20p by 1000 GMT.