THE RETAIL BULLETIN - The home of retail news
20 years serving the retail industry
Home Page
News Categories
Christmas Ads
Commentary
Department Stores
Electricals & Technology
Entertainment
Fashion
Food & Drink
General Merchandise
Grocery
Health & Beauty
Home & DIY
Interviews
Property
Retail News
Retail Solutions
Shopping Centres, High Streets & Retail Parks
Sports & Leisure
Retail Events
Omnichannel Retail 2022
Retail HR 2022
THE Retail Conference 2022
Retail Women In Leadership 2022
Digital Transformation Strategy 2022 Part 2
Upcoming Retail Events
Past Retail Events
Retail Insights
Retail Solutions
Advertise
About
Contact
Subscribe for free
Terms and Policies
Privacy Policy
Topps Tiles acquires 60% controlling stake in trade brand Pro Tiler

Topps Tiles has acquired 60% of online tile trade supplier Pro Tiler on Thursday, for initial consideration of £5.3m. The firm said it had also agreed put-and-call… View Article

HOME & DIY

Topps Tiles acquires 60% controlling stake in trade brand Pro Tiler

Topps Tiles has acquired 60% of online tile trade supplier Pro Tiler on Thursday, for initial consideration of £5.3m.

The firm said it had also agreed put-and-call options on the remaining 40% of Pro Tiler, exercisable from March 2024.

Topps Tiles said it intended to acquire the remaining 40% from March 2024, based on an agreed multiple of profits for the 12 months preceding that.

Consideration for the initial acquisition was financed from the group’s existing cash balances.

The company described the acquisition of Pro Tiler as a “significant development” in its growth strategy, and an “important first step” into operating a specialist online business alongside its omni-channel retail and commercial brands.

It said it was expecting the acquisition to be accretive to adjusted earnings in the current financial year, and beyond.

Looking at its current performance, Topps Tiles said retail trading in the second quarter to date had progressed well, with sales for the first nine weeks growing by 18.2% on a two-year like-for-like basis, and 45.6% year-on-year, against a period of lockdowns and trading restrictions in 2021.

Retail gross margins had also improved following management actions on pricing, with the company saying its costs were “well controlled” despite significant inflation, and operating cash flows in line with expectations.

The group said it was confident of delivering adjusted profit before tax in line with expectations for the year as a whole.

Its commercial business, meanwhile, had delivered “encouraging” sales growth, with a “strong” order book.

Topps Tiles said it was confident it would deliver an improved performance in the commercial business this year.

“Pro Tiler is a well-respected brand with a strong customer service ethic, which fits closely with our core values,” said Topps Tiles chief executive officer Rob Parker.

“The acquisition of an online specialist supplier to trade customers complements our omni-channel retail business and commercial brands.

“It also moves us closer to our 20% market share goal by 2025, while maintaining our specialism of tiling and related products.”

Parker said the development of its digital offer remained an important area of focus for Topps Tiles, with plans to expand that further in 2022.

“Trading for the year to date is in line with our plan and we are confident of delivering performance in line with our expectations.”

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News