UPDATE 3-Carpetright says no quick recovery as profits slide

* FY underlying pretax 17.2 mln stg vs f'cst 18 mln

* Final div cut to 4p vs 30p

* Says cautious about short-term prospects

* Shares down 3 pct at 0811 GMT

(Adds detail, CEO, analyst comments, shares)

By James Davey

LONDON, June 30 (Reuters) - Britain's biggest carpet retailer, Carpetright Plc (CATVU.L), said normal trading conditions would not resume for at least 12 months as it posted a 72 percent slump in full-year profit and slashed its dividend.

"People have got a little bit more money in their pockets because interest rates are down, fuel prices are down ... They're not spending money on cars, they're not spending money on holidays and normally that's very good for us," chairman and chief executive Philip Harris told reporters on Tuesday.

"But the thing that everyone's worried about is their job."

Harris, a 51-year industry veteran, estimated the overall UK carpet market was currently down at least 20-25 percent year-on-year but said Carpetright was winning a greater share.

His view resonated with comments last week from British electrical retailers DSG International Plc (DSGI.L) and Kesa Electricals Plc (KESA.L), which both reported slumps in profit and gloomy outlook statements. [ID:nLM41774] [ID:nLM694677]

However, a survey said British consumer morale hit a 14-month high in June. [ID:nLT385627]

Shares in Carpetright have lost 16 percent of their value over the past year but have gained 45 percent over the last three months, outperforming the FTSE All Share General Retailers Index .FTASX5370 by 22 percent.

The stock was down 3 percent at 582.5 pence at 0811 GMT valuing the business at 386 million pounds ($635.3 million).

'SHARES STILL EXPENSIVE'