Shares digital

Investors in Carpetright (CPR) can breathe a sigh of relief after it revealed that it will still meet its full-year targets despite a slowdown in UK sales. The company has been helped by its ambitious overseas expansion plans in Belgium, Holland and Poland, which now account for around 23% of total sales. It is also expected to benefit from the demise of some of the smaller players who are finding conditions in the UK even tougher and sentiment in the stock is aided by its ability to outperform its closest peer, Allied Carpets.

Margins should also improve further following the opening of the new national cutting and distribution centre, although it warns the UK is still a challenging market. Chairman and CEO Lord Harris was forced by the credit crunch to withdraw his £12.50 bid two months ago and considering the shares have since plummeted to 727.5p another approach is not out of the question.

Shares says: The 6.9% yield is attractive and the prospect of another bid makes the shares interesting.

by: John Marshall