Carpetright Group's FY revenue decreased by 1.3% to £456.8m despite LFL UK sales growth of 2.8% and underlying operating profit growth of 17.5%. Group underlying profit before tax grew to £17.3m.
Store space was reduced by 5.4%, a net 25 closures of underperforming outlets reducing its UK estate to 435.
CEO Wilf Walsh comments: “I am pleased to able to report on another year of significant progress. The group has again delivered solid growth in profit, accompanied by consistent LFL sales growth in both the UK and Rest of Europe, whilst establishing real momentum with its plans to update and revitalise its business.
“Today we’re giving a progress update on the range of strategic initiatives that will continue to broaden the appeal of the Carpetright brand and reposition the business, to ensure it is better able to capitalise on its market leadership position. Customer reaction to the initiatives trialled in our four concept stores during the period was overwhelmingly positive and we are excited about the opportunity of extending these to the wider estate commencing on 1st July 2016.
“Trading conditions in the early weeks of the new financial year have been more challenging, against strong comparatives in the prior year and in a market which is increasingly competitive, particularly in the UK. The outlook has been further complicated by the outcome of last week’s referendum and we are cautious about the impact the associated uncertainty will have on consumer confidence.
“Whilst we have a long journey ahead in transforming Carpetright, we have a clear direction and are confident that our plans for repositioning the business will yield positive results.”
As well as new branding identity being introduced in July, there is to be a phased refurbishment of the UK store estate, with 100 stores to be completed within the next 12 months at a capital cost of £10m.
The group ended the year with net debt of £1.1m, an adverse movement of £1.6m from the £0.5m net cash in 2015.
Carpetright reports a "challenging" start to the new financial year. May saw LFL sales down 7.6%, but June has been significantly better, up 6.3%.