Carpet king continues a long roll; Axminster, enthusiasm and the Conservative Party are at the heart of things for the dyslexic who once wanted to be a barrister; THE MONDAY INTERVIEW

THE MONDAY INTERVIEW:Sir Philip Harris

Sir Philip Harris is sitting in the boardroom of his company's head office in Rainham, Essex, but finding it difficult to stay still. One minute he is bouncing up to show off a new shop design, the next he is dashing out to ask his secretary for photographs.

"What do you think of this design then? See what we've done with these signs. We've really perked them up with a bit of yellow ... mmm," he adds, agreeing with himself.

He talks quickly with the enthusiasm of the born salesman and is in bouncy form. His carpet business is on a roll and so too, he believes, is his other great love - the Conservative Party, for which he is a key fund- raiser.

Carpets first. As the Axminster king of Britain, Sir Philip had already made one carpeting fortune when he secured pounds 70m from the sale of Harris Queensway in 1988. Now 53, he is doing it all again with Carpetright, a rapidly expanding carpet group whose low prices and high volumes have helped it snatch a 14 per cent share of the UK carpet market.

He is now rolling out a new larger format Carpet Depot with which he hopes to build the group's share to 20 per cent.

As for the Conservatives, Sir Philip has been enthused by the Tory Party conference and the recent dinner at Claridges to celebrate the 70th birthday of Baroness Thatcher, who awarded him his knighthood in 1985. He has continued his top-level connections. John Major and his wife, Norma, were guests at his villa in the south of the France over the summer.

He says: "The economy is improving all the time. Unemployment is coming down and we have a government that is listening. I think the 5,000 more policeman on the beat is very exciting."

Earlier this year he was taking pounds 5 bets that the Tories would win the next election. "I'd double that now," he says. As deputy chairman of the party's treasury committee he is helping to build a pounds 22m fighting fund at Central Office for the next election. The party's troublesome overdraft is down to less than pounds 10m, he says.

A skilled persuader, Sir Philip was thought to have been instrumental in securing a pounds 4m interest-free loan from Graham Kirkham, the wealthy head of DFS furniture, last year. Mr Kirkham last month raised pounds 74m from the sale of shares in the company. He can expect another call from Sir Philip soon.

If he finds the time, that is. Sir Philip and his tight-knit management team have spent the past few months working on the Carpet Depot format which will be expanded aggressively.

Carpet Depot is a huge, warehouse-style store that stocks carpets starting at prices as low as pounds 1.19 a square yard and up to around pounds 50. This is upmarket territory not yet explored by Carpetright.

"What do you think?" he inquires, holding up an artist's impression of the new design, complete with dayglo orange shop front. "Good, isn't it? I think it's one of the best ideas I've had."

The first outlet opened in the Thurrock retail park in Essex in September and a further two have already been added. There will be eight by next year and 70 within four years. "It's going to take the department stores like John Lewis head on."

Formed in 1988 and floated on the stock market two years ago, Carpetright has already established a chain of more than 200 outlets and consistently bucked the sluggish retail trend with spectacular profits growth and a pounds 20m cash pile.

"I spent six months looking at Europe but decided against it. France looked too tough and Germany was difficult to get into. So I've decided to concentrate on Britain.

"Everyone said Carpetright would run out of steam two years after we floated, but I think we're just about to gather steam." Initially, the plan was to build a chain of 200 stores. After new research he plans a chain of 250 outlets in Britain plus a further 10 in Northern Ireland.

Carpetright has been opening a new outlet every 12 days and the introduction of Carpet Depot will be its third format. There will be no more, Sir Philip assures.

The original Carpetright stores remain the core, with 190 outlets and growing. Earlier this year the group started opening Premier Carpets concessions in branches of MFI and Sainsbury's Homebase. So far there are 10 outlets, but this will grow to 120 within four years.

Carpet Depot is also going to get the rapid roll-out treatment. A chain of 70 is planned over the next four years.

However there are concerns in the City that the new format will cannibalise the core Carpetright chain. Sir Philip dismisses these worries: "Carpetright is still the big earner. We won't neglect that. But the Depot format is different and if we didn't do it someone else would."

He has a reputation as a tough employer. Under-performers are weeded out quickly. Loyal henchmen stay for years. John Kitching, Carpetright's sales director, joined Sir Philip for a summer more than 20 years ago and has stayed.

He says: "His enthusiasm is infectious. That's what motivates people. If things go wrong he can be ruthless, but he's not one of those people who throw their weight about for the sake of it."

Aside from carpets and Conservatives, Sir Phil's main hobby is show-jumping. He owns four top horses trained by David Broome and ridden by Michael Whittaker. Though privately owned rather than corporately sponsored, most have carpeting overtones such as Midnight Madness, the name of the Carpetright sale.

"I do a bit of riding but I haven't done any this year because I've been so busy. My real aim is for one of the horses to win an Olympic gold medal."

Few would deny him such expensive hobbies. Born in Streatham, south London, he left school at 15 to take over the family's three carpet shops after his father died. "I wanted to be a barrister, but I'm dyslexic so that wasn't possible. But I have no regrets."

He gradually expanded the chain through the 1960s and 1970s aided by the rise in home ownership and rising living standards. In 1977 he took over the Queensway furniture chain and in 1983 was named Hambro Businessman of the Year.

By 1988 when the business had expanded to include the Hamleys toy shops it was acquired by the doomed Lowndes Queensway buy-in.

Sir Philip denies that he is motivated by an ambition to make Carpetright bigger than Harris Queensway and prove wrong those in the City who question his record. But those close to him say he has a desire to prove he can do it all again.

Nigel Cope