Flooring sales have risen at United Carpets as it looks to preserve cash.

The chain has enjoyed an upturn in recent weeks but has again cancelled its interim dividend to save money after a fall in bed sales and taking more franchise stores under corporate control in the previous half.

Sales in the 11 weeks to 15 December rose 4.4%, although this does compare with 2010's weather affected period. Within this flooring sales were 4.9% higher and bed sales down 2.1%.

This compares with a rise of 0.2% and a fall of 11.7% respectively in the six months to 30 September. This produced a turnover of £34.86m, up 1.9% but pre-tax profits dropped from £604,000 to £267,000.

'We are pleased to have maintained a similar level of sales to last year given the continued uncertainty and inflationary increases impacting upon UK consumers. We have benefitted from our franchise model and our focus on providing good value to our customers but the increase in the number of less productive corporate stores together with a difficult trading environment for beds has adversely affected profitability,' says Paul Eyre, United chief executive.

The group again abolished its interim dividend and said it was reviewing paying the full-year dividend, worth £611,000 last year. United has £1.72m of cash and no borrowings.

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