Profits dip at Kidderminster carpet firm

Kidderminster carpet-maker Victoria has seen its profits slump by a quarter over the last year, and its workforce cut as sales fell in the UK and the Irish market suffered a "staggering" collapse.

The company has slashed its Kidderminster workforce by ten per cent, to around 200, although there were no compulsory redundancies.

But chief executive Alan Bullock said the 115-year-old business had been buoyed up by its Australian arm, which now accounts for 58 per cent of its sales.

"The Australian economy never went into recession and the market there bounced back quite strongly in the second half of the year," said Mr Bullock.

As a result group revenue was up 1.3 per cent to almost £63 million for the 12 months to April.

But pre-tax profits were down 25 per cent to £1.09 million. Mr Bullock said the UK market had then been hit by the worst winter for 30 years.