THE RETAIL BULLETIN - The home of retail news
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Health & Beauty
General Merchandise
Sports & Leisure
Retail Solutions
Food & Drink
Profits fall at Topps Tiles in 'challenging' first half

Topps Tiles saw its statutory pre-tax profit decline by 5.9% to £9.5 million in the first half of its financial year as like-for-like revenue edged down 1.9%.


Profits fall at Topps Tiles in 'challenging' first half

Total revenue decreased by 1.3% to £106.6 million in the six months to 26 April while adjusted pre-tax profit fell by 1.9% to £10.1 million.

In statement, the company said it put in a “solid” performance in a challenging market and against strong comparatives from 2016 when sales benefited from changes to Stamp Duty.

Matthew Williams, Topps tiles chief executive, explained: "Our results for the first half reflect the more challenging macro-economic environment we have traded through so far in 2017 and the strong performance we delivered in the corresponding period in 2016 when housing transactions were boosted ahead of the changes to Stamp Duty.

“While these tougher comparatives begin to ease from the end of June, the key macro indicators for our market are weaker year-on-year and we are taking a prudent view of the second half prospects.”

A net eight new core stores opened during the six month period taking the total to 359. The company is planning to launch around 10 new shops in the second half.

Reporting on more current trading, the company said like-for-like sales over the seven weeks to 20 May dropped by 5.8%. Topps now expects pre-tax profits for the full year to be towards the lower end of the range of market expectations.

Williams continued: "Against this background, we remain confident in the longer term outlook for the business, as evidenced by the 10% increase in the interim dividend. We will continue to focus on executing our proven strategy of "Out-Specialising The Specialists" and to invest in important sources of future growth.

“In particular, our recently completed analysis of the UK commercial tile market has confirmed it as attractive and we are now evaluating a number of small acquisition opportunities to increase our reach into this part of the market."

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News


Retail Human Resources Summit
Retail Human Resources Summit
Wednesday 3 October 2018
The Cavendish Conference Centre, London W1
The 10th HR Summit 2018, The Cavendish Conference Centre, London W1, 3rd October 2018
The Retail Design Summit 2018
The Retail Design Summit 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Summit 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy