Carpetright doubles divi after 'strong' first half

15th Dec 2009 07:28

A return to sales growth in the UK & Ireland helped carpets and floor coverings group Carpetright increase pre-tax profit by 16% and double the dividend.Profit before tax for the 26 weeks ended 31 October grew to £11m from £9.5m a year ago, which includes a £2.9m loss on the exit from Poland. Revenue rose 9% to £258m. Like for like sales growth of 3.9% in the UK & Ireland was the strongest half year performance since 2004, helped since July by the collapse of rival Allied Carpets. The Netherlands and Belgium fell 3.9% in local currency terms, although the market has sunk 15%. After allowing for the exchange rates moves, this equals total sales growth of 6.6% in reported revenue. Underlying profit for the group soared by 58% to £13.9m, including a 68% surge in the UK & Ireland and increase of 6.5% in the Rest of Europe."We are pleased with this significantly improved first half performance, which clearly demonstrates the strength of the group. The improved profit and reduction in net debt provide a firm base for the continued growth of our business," said chairman and chief executive Lord Harris of Peckham.Talks with housebuilders and insurers are progressing well and the group is starting to generate new business, while the exit from the loss-making Polish operation will boost profits, he added."While we remain cautious about the retail market in the balance of the financial year and through 2010, we have made a good start to the second half, with the added potential of more insurance and housebuilder business to come. Consequently, the board has confidence that the group is well positioned to make further progress." The interim dividend doubled to 8p from 4p a year ago when it was slashed from 22p.