Half-year losses at the retailer Carpetright have increased from £0.6 million to £11.7 million as the group carries out store closures.
In the six months to the end of October, pre-tax losses widened, with revenue also falling from £226 million last year to £191 million.
The struggling retailer agreed on a rescue plan earlier this year, which included the closure of 81 stores.
“This is a transitional year for Carpetright as we work through our restructuring plan,” said Wilf Walsh, the chief executive of Carpetright.
“We remain on schedule and are confident that this activity is already starting to yield benefits. This is the first stage in returning the group to sustainable long-term profitability.”
The higher losses and lower revenue did not shock investors and were to be expected. Instead, analysts were encouraged by the results and shares were up 4% in early trading.
Analysts from Shore Capital said: “In terms of the outlook, the restructure unfortunately comes at a time of increased uncertainty for the UK consumer with the process around the exit from the EU ongoing. This is especially unhelpful in what was already a challenging market. However, the transition plan is on track and management see itself as well-placed to deal with the challenges ahead.”
Carpetright sells headboards, flooring, tiles and mattresses. The group is hoping to invest in digital technology to improve the online and in-store experience for customers.
Shares in the group (LON: CPR) are currently trading +8.72% (0907GMT).
