Carpet chain says Irish market stable

British-owned floor covering retailer Carpetright has said it is committed to its Irish division and is seeing some recovery in its business here.

Over the past couple of years, the company has closed around 25 of its Irish stores — with one opening, in Kilkenny last December, taking its portfolio of shops here to 21.

Yesterday, the group issued a harsh set of full year results — for the 12 months to the end of April but noted some recovery in the Irish market.

“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, while progress has been made in the recovery plan for the Republic of Ireland,” said Carpetright’s chief executive David Shapland.

While the company’s Irish division remains lossmaking — Carpetright only breaks down its territories as Britain and the rest of Europe — that recovery plan has seen an improvement in margins and sales.

A spokesperson for the company said that management remains committed to its Irish presence and is seeing its losses here reducing.

Carpetright’s group figures showed an underlying profit of £9.7m (€11.4m) for the year, up from £4m in the previous year.

However, after exceptional items and charges, of nearly £15m — comprising net losses, lease provisions, property disposals and non-cash impairment charges — were accounted for, the company posted a pre-tax loss of £5.1m; as opposed to a pre-tax profit in the preceding year of £13.5m.

Group revenue was down by just under 3% at £457.6m, but net debt was reduced by nearly £9m to £10.2m.

In terms of outlook, management said that it expects trading conditions to remain challenging.