PROFITS at a Kidderminster-based carpet firm have soared by a massive 77 per cent to more than £4m, despite "challenging" trading conditions in the UK and Australia.

Victoria Carpets, which moved all its UK carpet manufacturing operation to Worcester Road last year, recently invested in state-of-the-art plant and technology, "operational efficiency" and "hands-on" management.

And, following last year's annual report, group managing director Alan Bullock said it was making more carpet of higher quality with fewer people than at any time in the past.

"Despite market conditions in the UK, which claim to be flat, Victoria Carpets' strong product portfolio and emphasis on targeted marketing has once more enabled us to further strengthen out position in the market place," he said.

In the UK, turnover rose by 3.4 per cent from £23.8m to £24.7m, while UK profit before tax rose by 44 per cent.

Profits before taxation for the group, which includes Canada and Australia, increased by 77 per cent to just under £4.4m.

The sale of the company's Green Street premises for more than £2.1m is not included in the annual profit figures.

Mr Bullock said the firm had continued to expand its share of the UK carpets market, while export sales had risen by more than 10 per cent to £4.45m, despite the continued strength of sterling.

"The company has created a strong reputation for the production and supply of 'bespoke' carpeting, particularly for the hotel industry," he said.

The firm's current list of overseas customers read "like a Who's Who of five-star deluxe category hotels".

Turnover and profits are predicted to increase further in 2002, with the launch of five new carpet ranges, only one of which is a replacement range.

The group's success comes despite particularly difficult trading conditions in Australia, including a general economic downturn and one-off events such as the Sydney Olympics.