Carpetright shares up over 10pc despite 93pc drop in profits

Carpetright (LON:CPR) shares moved up over 10 percent on Tuesday, despite recording a 93 percent fall in pre-tax profits for the year to the 29th April.

Underlying earnings per share fell 21.2 percent to 16.4 pence, with underlying operating profit in the UK falling 39.9 percent. Like-for-like UK sales dropped 0.5 percent over the year after a tough first half, but the company added that there was “significant improvement in performance” in the second half.

In a statement, Carpetright commented that it had been a “year of significant strategic progress – positive trading momentum re-established in second half, encouraging start to new financial year.”

Earnings had also hit by the plunge in the pound, which has pushed up the cost of imports. However, in Europe, there was like-for-like sales growth of 2.5 percent, aided by an accelerated store refurbishment programme.

Commenting on the results Wilf Walsh, Chief Executive, said:

“Our strategy is on track and the positive response we have received from these initiatives has encouraged us to press ahead with plans to complete the refurbishment of the UK store estate by the end of 2018 and to extend the programme in the rest of Europe.

“We have made an encouraging start to the new financial year, underpinned by the improving performance of our refurbished UK estate. While a challenging consumer environment and competitive landscape remain headwinds, we are confident the additional potential in our self-help initiatives will support an increase in market share.”

Shares in Carpetright (LON:CPR) are currently up 11.11 percent at 200.00 (1036GMT).