Operating profits halved at Topps Tiles
Operating profit at Topps Tiles halved in the 26 weeks to 28 March, after an 18.5 per cent decline in like-for-like revenues over the period.
The company has posted an operating profit of £10.3m for the six months, which compares to £20.8m for the same period last year. Profit beforetax is £0.6m, compared to £15.8m last year.
“The business continues to demonstrate its resilience during a challenging trading period. We are delivering on our key financial and operational objectives and as the market leading brand we are confident that we will benefit as competitors withdraw and conditions improve,” says Topps Tiles chief executive Matthew Williams.
Group revenue for the period declined from £106.3m in the comparable six months of 2008, to £92.1m this year. Gross margins fell from 62.7 per cent to 59.4 per cent. Operating costs were reduced to £44.4m, from £45.9m
Having discontinued its national television advertising campaign last year the group is to maintain a short term, tactical advertising strategy for the remainder of the year. It has reduced staff numbers by 8.5 per cent and scaled back its store opening programme.
In the first seven weeks of the current period overall group revenues declined 9.6%. Like-for-like revenues across the Group declined 11.9%.
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