StockMarketWire.com - Flooring retailer United Carpets warned its annual profit would miss current market expectations after a hoped-for bounce back after a decisive UK election result failed to materialise.

Pre-tax profit for the year through March was expected to come in at between £0.15m to £0.20m, below current market expectations of £0.5m.

United Carpets had already warned of subdued market conditions during the release in December of its interim results.

'Disappointingly, there does not appear to have been any uplift in trading following the decisive result in the general election and the retail environment has continued to be challenging,' it said.

Like-for-like sales in the eight weeks since that announcement had fallen by 5.7%, even after the introduction of a new instalment payment channel.

The channel, while having significant potential to boost earnings, had incurred higher-than-expected start-up and servicing costs.

'Current market conditions are very competitive as all retailers compete for every sale leading to aggressive discounting and we have acted to provide increased support for our franchise network,' United Carpets said.



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