“I think we are in for a difficult 12 months,” commented the chairman and chief executive.

The company reported underlying profits up 7.6 per cent to £62.1million in the year to May 3, on sales up ­nearly 10 per cent to £521.7million, including a 19 per cent increase to £69million in Europe. After exceptional items, pre-tax profits dipped £7.5million to £59.5million.

Harris, who gave no update on current trading, said the housing market slowdown was a small factor and that the biggest issue facing retailers was shoppers having less to spend.

However, he added: “It is not all doom and gloom. Carpets are always first into a downturn, but there is some optimism because we will be first out of it.

“In a very difficult market I don’t think last year’s results were too bad and they will get better.”

The shares fell 42dp to a five-year low of 617dp, valuing the company at £415milllion.