RUG PULLED FROM UNDER ROYAL CARPET MAKER

SHARES in the carpet company that supplies the Royal households fell nearly 15pc after it warned profits will be lower than previously thought.

Victoria Carpeting, which supplied the red carpet for the Royal Wedding of Prince William and Kate Middleton in 2011 ( pictured), said full-year profits are set to come in at £57m this year.

That is up from £40.8m last year but far lower than the £67m expected in the City. The announcement sent shares down 14.9pc, or 64.5p, to 367.5p. The firm was granted a Royal Warrant in 2013 and is also a major supplier to John Lewis.

It has angered investors with a strategy which has seen it slash prices to grab a bigger slice of the market, putting pressure on profits.

Amid a growing shift among consumers to put hard flooring instead of carpeting in their homes, Victoria splashed out £86m on ceramic and porcelain tile maker Ceramica Saloni last year.

Victoria said it also hopes to strike financing deals with its lenders, and will update shareholders in the coming months.

In a statement to the stock market yesterday, Victoria admitted that the changes would attract ‘understandable scrutiny’ from shareholders.