Topps Tiles profits climb as like-for-likes rise by 10.2% in first half
Topps Tiles saw its first half pre-tax profit rise to £8 million from £4.7 million a year earlier as the tile retailer benefited from improved consumer confidence and a stronger housing market.
In the 26 weeks to 29 March 2014, like-for-like revenues grew by 10.2% while group sales rose by 11.7% to £97.7 million.
Topps Tiles said the like-for-like growth reflected the company’s focus on growing its market share as well as improving levels of consumer confidence.
During the period, the retailer saw encouraging initial results from its trial of the new smaller format "Topps Tiles Boutique" stores which will continue to open in the second half with a further two stores to launch in and around the M25.
Topps Tiles chief executive Matthew Williams said: "The group has delivered a very successful first half performance, with strong sales growth, improving gross margins and overall growth in profits. While trading conditions undoubtedly improved during the period, helped by a higher level of consumer confidence, we believe our first half sales growth was significantly ahead of the overall tile market.
"Our strategy continues to focus on market share gains driven by offering an authoritative and differentiated range, outstanding service, and multi-channel convenience, resulting in excellent overall value for money."
The retailer reported making a good start to the second half with like-for-like sales rising by 5.6% in the seven weeks to 17 May 2014.
Williams added: "We believe we continue to grow sales ahead of the market and remain confident that our strategy will continue to deliver profitable market share gains, against a backdrop of a steady improvement in UK economic indicators."
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