Like-for-likes have declined 5.5 per cent in the past eleven weeks, an improvement on the 6.4 per cent like-for-like slump recorded in the six weeks to October 23 following the global economic banking collapse.
However, the figures reflect a marked deterioration in performance since the end of the first half to September 30, when like-for-likes climbed 5 per cent.
The retailer, which has 80 stores – 54 of which are franchisee operated – will invest in marketing and maintain tight cost controls as well as transfer a number of its stores to franchises.
Chairman Peter Cowgill said: “Although United Carpets' position as the value choice within the sector has to a degree helped protect it from the general slowdown on the high street, the management believe it is appropriate in this environment to adopt a cautious approach to protect our financial position going forward.”
In the six months to September 30 network sales, which include the value of retail sales by its franchisees, increased 5.9 per cent to£30.9 million. Total sales soared 22.4 per cent to£12.6 million with like-for-likes up 5 per cent.
Pre-tax profit fell 9.8 per cent to£637,000 and gross margins fell from 69.6 per cent to 65.4 per cent. The retailer will not pay an interim dividend.
United Carpets chief executive Paul Eyre said: “The group's focus on quality products at affordable prices, sold through both our corporate and franchised stores, has generated a satisfactory result for this half-year, despite increased costs associated with our store opening programme and additional marketing expenditure to maintain and increase market share.”
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