We have looked on incredulously at the meteoric rise in share price enjoyed by this manufacturer of carpet and floor coverings over the past few years. You could be forgiven for thinking this was some high growth, high margin technology business, which it definitely isn’t. Despite reassurances, this Group’s survival looks increasingly questionable to us as our latest research here suggests.
In response to its tumbling share price, the international manufacturer of floorcoverings has tried to reassure that all is well, we fear this is not the case. - Trading update wallowing in waffle The latest trading update on 29 October 2018 lacked detail. While it confirmed that like-for-like revenue growth had exceeded 3% compared with the equivalent period during the prior year, top line growth is being achieved at the expense of margins, as implied by the bizarre terminology of ‘investment in operating margin’. This is impacting the Group’s overall margin by approximately 1 - 1.5 percentage points versus consensus…
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