Topps Tiles full year revenue declines as it sets new market share goal
Revenues at Topps Tiles fell by 12% to £192.8 million in the 12 months to 26 September as retail like-for- like sales dropped by 12.5% across the year due to the impact of Covid-19 store closures in its third quarter.
However, like-for-likes recovered in the fourth quarter with an increase of 16.5%.
The results meant that Topps posted a pre-tax loss of £9.8 million compared to profit of £12.5 million in the prior year. Adjusted pre-tax profit came in £3.6 million compared to a previous £16 million as third quarter trading losses from store closures were partially offset by Government support and improved trading in the final quarter.
Rob Parker, Topps Tiles chief executive, said: “In what has been a very challenging year, I am pleased with our response as a business, in the resilience we have shown and, in particular, the strong bounce-back in retail sales delivered since the initial national lockdown.
“During the year we have transformed our balance sheet and have accelerated our strategic development, building on our credentials as the UK’s leading tile specialist.”
Looking at more recent trading, Topps said it has benefited from increased interest in home improvements, although the commercial tile market remains subdued.
The retailer has now set itself a new market share goal of securing £1 in every £5 spent on tiles in the UK by 2025.
Parker added: “It has been a year of challenge and change for Topps but we are emerging stronger and refreshed. Our new financial year has begun strongly, with retail like-for-like sales in the first eight weeks ahead by 19.6%. With our true omnichannel offer, specialist credentials and strong financial footing, Topps is well-positioned for growth as the UK economy begins to recover.”
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