Topps Tiles posts drop in first half profits
Topps Tiles has said its has made an encouraging start to the second half of its financial year as it reported that first half pre-tax profit fell by 18.8% to £5.2 million.
First half revenue was also down, falling by 0.2% to £110.3 million in the 26 weeks to 30 March. However, like-for-like sales edged up 0.2% in the period.
Matthew Williams, Topps Tiles chief executive, said: “The group has delivered a resilient first half performance as we continue to consolidate our position as the UK’s leading tile specialist. Against a consumer backdrop which remains challenging, our trading performance was robust, underpinned by further gains in market share.”
Topps said its commercial business is continuing to grow rapidly, with first half sales more than tripling year-on-year. Expansion of the division was accelerated by the acquisition of Strata Tiles in April.
Williams added: “Strata is highly complementary to our existing Parkside commercial business and, together, the two brands provide the group with a strong base for further expansion into this large and attractive market segment.”
Meanwhile, like-for-like sales in the seven weeks to 18 May increased by 1.2% compared to a fall of 0.2% in the corresponding period last year.
Williams said: “The group has made an encouraging start to the second half, with trading in the period to date continuing the positive trend seen in Q2. While we are retaining a prudent view of market conditions for the remainder of the year, we remain confident in our ability to continue to extend our market leading position.”
Topps said its customers behaviour is changing with almost all customers, on a typical shopping journey, now using both its stores and website.
