BOSSES of Kidderminster carpet firm, Victoria, say despite a retail slowdown and soaring energy costs, jobs will remain safe.

Group managing director, Alan Bullock, said the firm had been hit by a slump in the consumer market over the past two years but had still managed to boost sales to £52.29 million in the year to April 1, from £49.28 million last time.

Pre-tax profits, however, were down by almost 27 per cent, to £2.2 million, compared to £3.01 million a year ago.

Mr Bullock said profit margins had been hit by increasing energy costs, particularly gas and electricity, which had increased by over 80 per cent.

That was particularly so in the UK and Australia, where the company had also been hit by price competition.

The setback was shrugged off by Mr Bullock, however, who said the firm had "adjusted well" to a second year of tight consumer spending.

He said: "Consumers are not spending as much on the High Street as they have in the past. However, we are still a very successful company and the profits are 10 per cent higher than the market forecast for the group."

Mr Bullock added he was addressing the increasing energy costs to ensure the factory was as energy efficient as possible.

The results, published on Tuesday, came only months after Victoria took a £188,000 hit from the closure of its dye house in Kidderminster in March. That was a result of the company pulling out of Axminster weaving last year.

Mr Bullock said: "We can assure the workforce in Kidderminster that their jobs are safe. We have a successful plant here. When the market conditions improve then we will be in a position to exploit these conditions and do even better."