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Lower costs and stronger margins helped national flooring chain Carpets4Less to grow profits by a quarter in 2013–14.


The franchise retailer — which has 27 stores —  grew EBITDA by 15 per cent to £506k with pre-tax profits rising by 27 per cent to £324k in the year to end January.


This was despite a softer top line performance, with network sales — including the revenue of its franchisees — falling 2.8 per cent to £13m and the group company’s own revenue down by 3.1 per cent to £8.6m.


The lower income didn’t stem profits, though, helped by a 20 basis point lift in gross margin to 31.9 per cent and cuts in both distribution and administrative costs, though not payroll which increased year-on-year.


Year-end cash and equivalents increased to £657k (2013: £371k).


Privately owned Carpets 4 Less’ head office is based in Bedfordshire, while franchisees have taken the chain across England in locations spanning Ashford in the South to Lincoln in the North.



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