Topps Tiles holds profit guidance despite challenging trading

Topps Tiles has reiterated its full-year profit guidance after a challenging year for the tile market, with sales hit by "periods of extreme heat" in the final quarter.

The UK's largest specialist tile seller said group revenue fell 1.3% to around £292m in the 52 weeks to 26 September, while revenue excluding CTD Tiles rose 0.7% to approximately £267m. Like-for-like sales declined 0.1%, although trading improved in September and the group continued to outperform the wider market, which fell around 1.7%.

The Leicestershire-based firm said extreme heat had temporarily disrupted activity among housebuilders and traders, but its Pro Tiler Tools trade business delivered record revenue of around £42m, up 18.2%.

The group expects adjusted profit before tax to be in line with current market expectations of £6.6m. It said profitability had been supported by the completion of its self-help programme, including store network optimisation, a lower-cost labour model and head office consolidation.

Topps Tiles, which operates around 300 outlets, following the closure of underperforming stores, also reported progress in its digital and product strategies, with full-year online revenue rising 3.7% to 22.7% of group revenue. Sales from newer hard-surface categories, including acoustic panels, outdoor tiles and shower panels, increased 9.1%, while the acquisition of Fired Earth was profit accretive during the year.

Shares rose 2% to 35.4p in early trading. Topps Tiles is due to report its full-year results on 8 December.



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