News: Solid performance for United Carpets

Rotherham-based United Carpets, the second largest chain of specialist retail carpet and floor covering stores in the UK, has announced its interim results for the period ended September 30 2010.

In difficult trading conditions, network sales across the group's corporate and franchise stores, was broadly maintained at £34.2m compared to £34.5m in 2009. Profit before tax decreased by 14.0% to £604,000.

Revenue, which includes marketing and rental costs incurred by the group and recharged to franchisees, was £13.36m (£14.06m in 2009) principally reflecting the reduction in the average number of corporate stores during the period. The majority of revenues are derived from the sale of floor coverings, predominantly carpet, laminate and vinyl flooring through franchised and corporate stores.

With their head office at Bramley, United Carpets has 83 branded stores across Northern and Central England and has seen significant progress in successfully franchising corporate stores with the average number of corporate stores reducing to 11 from 20 and total stores up from 82 to 83.

With the majority of stores operating under the group's franchise model, the business benefits from the entrepreneurial drive and motivation of the individual store owners which, the company believe, is a critical advantage over more traditional retail networks.

Paul Eyre, Chief Executive, said: "This was a solid performance in a very challenging trading environment. Consumers remain cautious over spending, following uncertainty in the job market and the lack of any clear signs of economic recovery.

"However, United Carpets' focus on offering exceptional value combined with the benefits of our franchise model has ensured we have maintained our market position and continued to attract new franchisees.

"We continue to expand the business and have the financial flexibility to take advantage of any opportunities that come about as a result of the current slowdown and remain well placed to benefit as and when growth returns to the economy."

United Carpets website

Images: unitedcarpetsandbeds.com