London, England, November 23, 2005--Intense competition and higher oil prices sapped first half profit at carpet maker Victoria.
Pre-tax profit from continuing operations fell to £0.99m for the half-year ended 1 October 2005 from £1.41m before. Sales rose to £26.02m from £25.43m.
Within the UK, the market is estimated to be down by as much as 10%, Victoria said. "We have experienced what have possibly been the most difficult trading conditions of the past decade."
"Margins have been adversely affected by both intense competition and escalating cost pressures brought about by higher oil and energy prices," it said in a company statement.
Chairman Bob Gilbert added, "We anticipate that the benefits of our investments in new range introductions, which have been well received by the trade in both Australia and the UK, should now start to feed through. Subject to the footfall in retail shops and no further market deterioration, we believe that these products should further underpin trade in the second half-year."
