A 72% drop has been reported by Carpetright in its annual profits, which it said have been hit by both the weakness in the housing market and the widespread recession.

In the 12 months to 2nd May, a pre-tax profit of £16.7m has been reported by the carpet and floor coverings retailer; the figures being down from £59.5m for the same period a year earlier.

From a year ago, annual revenues dropped 7.4% to £482.8m. According to the company, trading conditions would not improve for at least another 12 months.

Lord Harris, Chairman and Chief Executive, said: "I have said before that I expected my 51st year of selling carpets to be extremely challenging, and it has proved to be the case."

He added: "Market conditions and consumer confidence declined throughout the year."