Victoria insisted that a “normalisation” of demand for flooring was “getting closer”, even though profits and sales fell for the full year.

Pre-tax profit fell from £76.9 million to £27.1 million, while revenue fell 14 percent to £1.23 billion as macroeconomic factors impacted consumer spending on flooring.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) also fell from £196 million to £160.7 million. However, Victoria argued that the company had still “outperformed” the wider flooring market in “several of its key geographies”.

““We remain cautious about near-term trading conditions and cannot predict exactly when demand will normalise, but we are (logically) steadily approaching that point,” said Geoff Wilding, Victoria’s executive chairman.

“As interest rates fall, real estate transactions and deferred purchases of renovations, upgrades and repairs will pick up again, which in turn will boost demand for flooring.”

He added: “We expect the above-average market performance and productivity gains of the last 24 months to quickly translate into Victoria’s profit and cash flow. Until then, we remain focused on minimising controllable costs and gaining market share.”

Founded in 1895 as a small tapestry weaving factory in Kirkcaldy, Scotland and listed on the London Stock Exchange, Victoria has developed into a leading international flooring supplier with around 7,300 employees.

But the company has had a tough last 12 months: shares have lost over 70 percent, demand has fallen sharply due to high interest rates and inflation, and the number of home purchases has also declined.

A scandal also broke in September when auditors from Grant Thornton warned that there were “risk factors for fraud” and “potential irregularities” related to certain transactions at the Hanover Flooring subsidiary.

It then said the board had “taken immediate action to fully address the issues” and today’s report confirmed that there had been no financial misconduct, no money had been lost and all payments had been received.

Before releasing the results, the company had forecast a decline in sales and EBITDA.