The company, which has more than 140 UK stores, recorded a turnover of £74.7m, down 5.2%. Like-for-like sales fell by 18%.
Chairman Alan Smith described 2005 as the most challenging year for the UK retail sector for more than a decade.
He said: “A series of interest rate increases by the Bank of England slowed the UK housing market with significant impact on the laminate and wooden flooring market.”
Floors 2 Go said the difficult market conditions had continued into 2006.
The company, which plans to open 15 new stores this year, has altered its product mix in recent years from inexpensive laminates to more exotic laminates and hardwood flooring.
