United Carpets PLC (LON:UCG) has reported better signs recently after a first-half profits slump.
Paul Eyre, the retailer's chief executive, said while the trading background generally remained uncertain recent trading had shown more encouraging signs which, if sustained, should result in a better second half result.
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For the 11 weeks since the half-year, like for like sales improved to a modest 0.1% up on the prior year.
United’s sales dropped by 1.8% on a like-for-like basis in the six months to September though sales overall rose to £10.8mln from £10mln with the addition of a new company-owned outlet.
Profits fell to £121,000 (£589,000) as distribution and admin costs rose sharply, while there was a bad debt charge of £91,000 as some franchisees struggled.
At end September, United had 58 stores of which 50 were franchised and 8 were corporate stores.
Shares fell 8% to 5.75p.