Highlights
UK
• Like-for-like revenues increased by 2.2%. Excluding the expected contraction in sales from the wholesale business, the core retail business like-for-like grew by 3.9%.
• Gross profit percentage increased by 260 basis points to 61.5% (2012: 58.9%).
• 154 stores refurbished in the period taking the total to 186 stores, with sales uplifts in the fully modernised stores of over 10%.
• Store base reduced by a net 12 during the year to 478 stores.
• Exceptional charges of £14.8m related to a combination of net losses on disposal of properties, onerous lease provisions and non-cash impairment of property assets.
Rest of Europe
• Revenue in local currency, declined by 10.4% with like-for-like sales down by 11.0%.
• Difficult trading conditions in the Netherlands, where the floor coverings market remains weak.
• Number of stores remains unchanged at 142, having opened three and closed three stores during the period.
Commenting on the results, Darren Shapland Chief Executive said:
"The Group grew underlying profits and generated cash during the year, with an encouraging increase in UK retail store like-for-like sales and a significant improvement in gross profit percentage year-on-year. In the Rest of Europe, trading conditions in the Netherlands remained difficult whilst progress has been made in the recovery plan for the Republic of Ireland.
"The success of our self-help activities in improving Group performance during the period was particularly encouraging, demonstrating that a focus on factors within our control can yield good results.
"While we expect trading conditions to remain challenging, we are confident that the combination of these self-help initiatives will underpin the positive momentum of the Group."
No dividend declared for 2013
