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Carpetright share price soars as pretax profit jumps 250%

iNVEZZ.com, Monday, December 15, Carpetright’s (LON:CPR), shares have soared after Britain’s biggest floor coverings retailer said it expected full-year profit to be near the upper end of market forecasts after an improved performance both at home and abroad. However, the company also voiced concerns over a slowdown in property sales growth in the UK and economic uncertainty in the EU.

Europe’s leading carpet seller said in its interim results announcement this morning that underlying pretax profit had risen 252.6 percent from £1.9 million to £6.7 million in the six months to 25 October. The group said current market expectations for the year to 2 May ranged from £8 million to £11 million.
“Having made a solid start to the year, we now expect full year underlying pretax profits to be towards the upper end of current market expectations,” said Carpetright’s chief executive Wilf Walsh. The group, however, announced it would not be paying an interim dividend due to “uncertainty in the retail environment”.

“While there remains significant uncertainty over consumer spending in the coming months, with a general election and a slowdown in housing transactions in the UK, and weakening economic conditions in Continental Europe, we remain confident the Group will continue to make progress during this time,” the company said in today’s statement.
Traders seem to have dismissed the company’s concerns, sending Caperight’s stock nearly 12 percent higher to 350.50p, as of 12:14 GMT. The shares were down 40 percent since the beginning of the year before trading opened today, having suffered from a string of profit warnings and the sudden departure of its chief executive last year.
According to the Financial Times, as of 12 December 2014, the consensus forecast amongst 15 polled investment analysts covering Carpetright plc has it that investors should hold their position in the company. The median share price target of the four analysts offering 12 month price targets is 287.50p with a low estimate of 250.00p and a high estimate of 365.00p.