CARPET retailer Carpetright has outlined plans to increase its presence in smaller towns after reporting a 33 per cent rise in annual profits.

The group, based in Rainham, Essex, said the small store format that it had been developing this year allowed it to trade in areas previously dominated by independent stores.

Despite difficult trading conditions, Carpetright said it had been an encouraging year and that it was well placed to increase its market share, sales and profits.

The company, which has 364 stores and 38 concessions in the UK and Ireland, saw pre-tax profits rise to £67.1m in the year to May 1.

This included record results from its UK and Irish operation, where operating profits increased by 14.1 per cent to £64.8m.

A poorer performance in the first half was offset by a 4.1 per cent increase in like-for-like sales in the second half, as the group ran a number of successful promotions.

The group said it would be looking for 80 to 100 additional sites during the next three to five years.