Shares in recovering retailer Carpetright (CPR) shot up 6 per cent after the company released a buoyant set of full-year results. After diving into the red in 2014, sales recovered last year to move the company safely back into the black. It helped that the company included an extra week's trading as part of the numbers, which boosted revenue by an extra £7.2m, adding £1.2m to pre-tax profit.
Management is six months into a turnaround plan which has included revamping the product offering, improving the company website and exiting eight stores with onerous lease agreements. In the reported period, the company made a £7m provision against said leases on its income statement. Excluding this, pre-tax profits more than doubled to £14.2m.
This year is off to a good start, too. Like-for-like sales in the UK are tracking 4.9 per cent ahead of last year, while European sales are up 7.4 per cent on the same basis.
Analysts at Peel Hunt expect adjusted pre-tax profit of £17m for the year to May 2016, giving EPS of 19.1p, compared with £14.2m and 15.4p in 2015.
| CARPETRIGHT (CPR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 613p | MARKET VALUE: | £416m | |
| TOUCH: | 613-623p | 12-MONTH HIGH: | 623p | LOW: 298p |
| DIVIDEND YIELD: | nil | PE RATIO: | 91 | |
| NET ASSET VALUE: | 88p* | NET CASH: | £0.5m | |
| Year to 2 May | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 487 | 6.6 | 6.8 | 8.0 |
| 2012 | 472 | 13.5 | 16.4 | nil |
| 2013 | 458 | -5.1 | -9.8 | nil |
| 2014 | 448 | -7.2 | -5.3 | nil |
| 2015** | 470 | 6.6 | 6.7 | nil |
| % change | +5 | - | - | - |
Ex-div: na Payment: na *Includes intangible assets of £56.1m, or 83p a share **53-week period | ||||
