Insider Media Limited

International carpet manufacturer Victoria has "firm plans" to become the leading supplier in both the UK and Australia, the company said as it revealed a leap in sales in its year-end results this morning. The Kidderminster-headquartered business, which supplied a carpet range to Westminster Abbey for the Royal Wedding, said pre-tax profit shot up 76.8 per cent to £1.9m.

Victoria released its annual results to the London Stock Exchange this morning.

Alongside a rise in profit, the company increased revenue by 12 per cent to £70.5m for the year ended 2 April 2011.

Operating profit was also up 35.8 per cent to £2.42m. Adjusted earnings per share soared 103 per cent to 18.35p.

The company said its UK trading market over the 12-month period was the "toughest environment seen for years", but said it bounced back, "finishing robustly after weak start".

As well as recently supplying a new range of carpet to Westminster Abbey for the Royal Wedding, Victoria has signed several deals with high-street giant John Lewis to roll out a line of new products across its network.

The company said plans were also place to expand both the group's retail and commercial offering and "develop new channels" to market.

Nikki Beckett, chairman of Victoria, said: "The business has made a good start to its new financial year. Our product offering is fresh and receiving good feedback from the trade. However, we are expecting trading conditions in the year ahead to be tough, with raw material price increases remaining a challenge.

"Consumers are cautious about the future and their confidence is still at a low level; therefore discretionary spending is likely to stay under pressure on big ticket items, including carpets. The quality of revenues in the UK have improved as a consequence of the group's entry into the insurance replacement market; reducing the dependence we have on consumer sentiment."

Victoria said its Australian trading division had performed at a "resilient" pace, delivering strong performance reflecting margin improvement. The quality of UK trading also improved, said the company.

Beckett added: "Whilst the short term economic environment is likely to remain difficult, we are confident that the Group is very well placed to deliver against its long term objectives.

"Victoria is determined to become the leading quality flooring supplier in both Australia and the UK and we have firm plans now in place to ensure we achieve this goal. We look forward to updating stakeholders of our progress."