13 December 2016 – interim results
The group has announced disappointing interim results covering the six months to 29 October which have revealed a fall in both revenues and adjusted pre-tax profits as trading conditions remain challenging. Revenue for the period declined by 3.8% to £222.3m (2015: £231.2m) whilst adjusted pre-tax profits fell 44.4% to £5.0m (2015: £9.0m). Earnings per share on the same basis were 41.1% lower at 5.6p (2015: 9.5p) and there was no interim dividend. Net cash at the period end was £0.4m (2015: £4.1m). Although the full impact of the decision to leave the EU remains unclear the markets in which the group operates remain very competitive. The group is taking action to address this, closing underperforming stores, introducing new products with a focus on hard flooring and changing with a new brand identity. The second half has started well with like-for-like sales increasing and the group has confirmed it remains happy with full year profit forecasts. With adjusted full year profit before tax likely to be £16.6m for earnings per share of 18.8p, we believe the shares are CHEAP.