UK
• Like-for-like revenues declined by 0.2%. Excluding the expected contraction in sales from the wholesale business, the core retail business like-for-like grew by 0.5%.
• Gross profit percentage increased by 100 basis points to 62.5% (2013: 61.5%).
• 89 stores refurbished in the period taking the total to 275 stores, representing 58% of the trading estate.
• Store base reduced by a net six during the year to 472 stores.
Rest of Europe
• Revenue in local currency, declined by 8.6% with like-for-like sales down by 8.6%.
• Difficult trading conditions in the Netherlands, where the floor coverings market remains weak.
• Number of stores remains unchanged at 142, having opened one and closed one store during the period.
Exceptional charges of £11.8m related to a combination of net losses on disposal of properties, onerous lease provisions and non-cash impairment of property assets.
Board succession plans confirmed - Wilf Walsh to join as CEO on 21 July 2014, at which point Lord Harris will become non-executive Chairman.
Commenting on the results Lord Harris, Executive Chairman, said:
"While indicators point to an overall improvement in UK economic performance over the past twelve months, it has been a challenging time for the Group with our markets remaining highly competitive and deal-driven.
"The performance of the business in the Rest of Europe is principally a reflection of the continued difficult trading in the Netherlands. Whilst this business reported a loss for the year, it remained cash generative.
"Against this backdrop, we continue to take steps to develop the business. While we anticipate trading conditions will remain challenging, we expect these actions will underpin an improvement in Group performance in the new financial year."
