Sales growth slowing at Carpetright

GROWTH is slowing at Carpetright, the country's largest wall-to-wall specialist, but the firm is pushing onto the Continent through a deal worth around £32.5m.

Profits rose 18% to £52.5m before tax, with total sales ahead 12% at £361.5m for the year ended 27 April. Like-for-like sales growth in the first 8 weeks of the current year dipped to 4.2%, from 6.7% in the year just gone. It will pay a final dividend of 20p a share, up 25%, bringing the total for the year to 33p from 27p previously.

Carpetright is buying into its Low Countries counterpart, Carpetland. It is paying e15m (£9.7m) for a 50% stake. It will take management control of the joint venture and also has an option to snap up the remaining 50% within the next six years. It has also bought certain properties from which Carpetland operates for e35m.

Carpetland is the leading carpet retailer in Holland, Belgium and Luxembourg with a market share of 5-6%. It had sales of e94m and a pre-tax profit of e3.8m last year.