'Normal' trading still a year away says Harris

Published on Tuesday 30 June 2009 21:36

THE long-serving boss of Carpetright revealed a 72 per cent profit slump yesterday as he warned "normal" trading conditions were still more than 12 months away.

Lord Harris of Peckham, the company's chairman and chief executive, described his 51st year of selling carpets as "extremely challenging" after like-for-like sales slumped 13.5 per cent in the UK and Ireland during the year to 2 May.

Pre-tax profits fell to 16.7 million from 59.5m a year earlier, despite continued growth from the company's estate of European stores.

Harris said: "Although there have been a significant number of actions taken by the government to improve the economy, we do not expect a return to more normal trading conditions for at least 12 months."

The uncertain outlook and need to maintain financial flexibility meant the company slashed its dividend for shareholders by 87 per cent to 4p a share.

The retailer's expansion slowed during the year, with the net addition of eight stores following the closure of 21 sites as a result of an ongoing programme to move to lower cost locations.

It boasted 567 stores in the UK and Ireland at the start of May, with a further 20 outlets due to open in the current financial year.