Floor coverings firm Victoria Carpets has seen profits reduce by a quarter after an “extremely challenging” year.
The Kidderminster-based company has posted pre-tax profits of £1.09 million for the year to April 3, compared to £1.46 million in the 2009 financial year.
The company turned over almost £63 million, compared with £62.2 million last year, and 63.5 per cent of turnover came from overseas operations.
Chairman Nikki Beckett said the firm’s performance in Australia was one positive aspect from the year.
She said: “The past year has been an extremely challenging one, as once again we have had to contend with unprecedented turmoil in world financial markets and a global recession that has continued to sap consumer confidence.
“Looking ahead, any growth in the UK and Ireland in the short-term is likely to come from product innovation and some of the new market initiatives we are developing. We anticipate trading in the UK and Ireland is likely to remain difficult with Government spending cuts in the public sector, unemployment and reduced take home pay, coupled with a weak housing market, likely to continue to affect consumers’ discretionary spending on larger ticket items such as carpets.
“Conversely, the Group is fortunate at this time to have a very strong presence in the Australasian market which is commodity driven and at this stage looks likely to see strong economic growth over the next decade.”
Revenue in the UK, which comprised of both carpet and external yarn sales was down by 5.6 per cent across the year, from £24.33 million to £22.97 million.
In all, carpet sales within the UK were down by 9.9 per cent from £22.57 million to £20.33 million.