Kidderminster-based Victoria Carpet is battling the tough retail market.
At the Annual General Meeting yesterday, chairman Bob Gilbert, told shareholders: "Market conditions in both the UK and Ireland have remained difficult, and there is still no evidence that consumer demand and retail footfall on the high street is improving.
"However, I am pleased to report that Victoria has started off the new financial year positively.
"In the UK and Ireland, sales in the first quarter are up on the comparable period last year and we met our budget targets. In Australia, however, the reported intense price competition continues to affect margins although our sales activity has held up well.
"The first half of our financial year is generally the quieter period for carpets sales. This being said, we remain satisfied that the group overall is well positioned for a satisfactory year as a whole."