Warwickshire floorcovering distributor Headlam said more realistic vinyl flooring had helped propel it to record sales and profits during 2004.
Floors, which looked more like real wood and stone had outstripped market growth to notch up a 16.4 per cent sales increase, it said.
Meanwhile, carpet products saw their sales rise by 8.3 per cent during the year, laminated and wood products and underlay also enjoyed extra sales.
Chief executive Tony Brewer said: "Carpets, which are about half of our business, has seen an increased in sales, but it is the vinyl section which has been really successful.
"It helps that the stone and wood vinyl is more realistic looking. In the past there was a perception that it was cheap looking lino, but not any more." Meanwhile, Headlam - whose headquarters are in Coleshill - said its businesses in the UK and Continental Europe had made a strong start to 2005.
The company which supplies independent retailers and contractors with floor coverings from carpets to sisal rugs for homes and workplaces, said the first ten weeks of 2005 had shown a positive trend throughout.
Pretax profits rose by 17 . 6 per cent to £38.3 million, while turnover increased by 12.7 per cent to £464.8 million.
Headlam said like-forlike sales, stripping out the effect of new stores, grew 9.2 per cent for the year in the UK. Mr Brewer added that his company was benefiting from people refurbishing their homes.
" When house moves slow, it means people are spending more on their existing properties. We are finding that a lot of people are refurbishing either their own homes or other houses they have bought."
Mr Brewer said Headlam was targeting further growth, both organically and through acquisition. Headlam set a dividend of 16.25p a share, up 17.3 per cent on a year earlier.
Headlam shares closed at 460p up 173/4p.