(Alliance News) - United Carpets Group PLC on Wednesday said there was no boost to trading conditions following the UK's general election on December, and added that its like-for-like sales have fallen over the past eight weeks.
Shares in the carpet retailer were 24% lower at 4.00 pence each in London on Wednesday morning.
United Carpets said it experienced "comparatively poor" trading in the quarter leading up to Christmas, and added the market environment "has continued to be challenging".
Like-for-like sales in the eight weeks since December 20, when it announced its interim results, have slipped 5.7%.
For the year ending March 31, United Carpets expects pretax profit in the range of GBP150,000 and GBP200,000. Not only is this below market forecasts of GBP500,000, it would also be less than half the GBP590,000 achieved in financial 2019.
Total sales for the year however, are expected to be "significantly" higher year-on-year following the introduction of its instalment payment option.
United Carpets said: "The new instalment payment channel has, in the board's opinion, significant future potential, however, start-up and higher than anticipated servicing costs has meant it will not be profitable in the current year."
The firm added: "Current market conditions are very competitive as all retailers compete for every sale leading to aggressive discounting and we have acted to provide increased support for our franchise network.
"The company has significant cash balances and virtually no debt, creating a platform that together with its experienced management team means it is well placed to benefit from any upturn in market conditions."
By Eric Cunha; ericcunha@alliancenews.com
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