The Investment Column: Carpetright sales bounce back
Wednesday 18 June 1997
But full-year figures and upbeat comments on current trading helped, pushing the shares 37.5p higher to 478.5p yesterday.
Encouraging was Lord Harris's insistence that, far from a trading battle, there was plenty of room in the carpet market for more stores. With more than 70 per cent of the UK carpet market still in the hands of the independents and only one other big competitor - Allied Carpets - Carpetright has scope to increase its market share from the current 17 per cent.
Sales for the year to April rose 10 per cent on a like-for-like basis in a market growing at around half that rate. Moreover, Lord Harris reckons that even if the group's like-for-like sales growth slowed to 4 per cent for the next three years, as it has over the past seven weeks, the group will still hit its target of 30 per cent market share by 2000 and maintain margins.
As it is, most of the recent slowdown has been due to a dip in consumer confidence before the election and there are signs of a recent bounce in sales growth, which should be maintained by the housing market recovery.
That could mean higher margins over the next few years. What will also help are signs that the group is abandoning its cut-throat discounting policy for more sensible pricing.
Gross margins in the period lifted a healthy 3.4 percentage points to 49 per cent.
NatWest is looking for profits of around pounds 41m for the current year. On a forward p/e ratio of 14, the shares are cheap compared to the loftier valuation applied to Allied, but that is probably a fair valuation.
- 1 What if 35 Palestinians had died, and 800 Israelis?
- 2 Disney heiress Abigail disowns her share of family profits in West Bank company
- 3 The secret report that helps Israel hide facts
- 4 'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
- 5 Ross Burden dead: MasterChef and Ready Steady Cook star dies at age 45 after suffering from cancer
A former custard factory, a Midlands bog and a Leeds cemetery all included in top 50 hidden spots in the UK
Disney heiress Abigail disowns her share of family profits in West Bank company
'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Ross Burden dead: MasterChef and Ready Steady Cook star dies at age 45 after suffering from cancer
The secret report that helps Israel hide facts
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
A day in the life of Vladimir Putin: The dictator in his labyrinth
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
- < Previous
- Next >
iJobs Money & Business
£350 - £400 per day + competitive: Orgtel: Senior Analyst, ALM Data, Halifax, ...
£500 - £600 per day: Orgtel: Java developer - Banking - London - Up to £600/d...
£400 per day + competitive: Orgtel: Liquidity Reporting - Basel III - LCR - Ba...
Negotiable: Harrington Starr: Client Services Associate (Microsoft Office, Ana...