Topps Tiles reports 'strong' full-year performance
Topps Tiles has increased its full year pre-tax profit by 1.8% to £17 million after achieving record sales of £212.2 million.
In the 53 weeks ending 3 October, the tile and flooring retailer grew its like-for-like sales by 5.4%. Adjusted profit before tax rose by 19.3% to £20.4 million.
Topps Tiles said its strategy of "Out Specialising the Specialists" continued to deliver results. Its goal of taking £1 in every £3 spent in the UK domestic tile market was achieved one year early, thereby marking the seventh consecutive year of market share gains.
Sales benefited from increased investment in new product development with 9.3% of tile revenues generated from ranges launched in the last 12 months.
Matthew Williams, Topps Tiles chief executive, said: "I am pleased to report that Topps delivered a strong performance for the year, with our focus on convenience, inspiration and range driving sales to a new record and enabling us to hit our strategic goal of a one third share of the domestic tile market a year ahead of schedule. Our strategy of 'Out-Specialising the Specialists' continues to be very effective and will remain at the heart of what we do as we seek to build on these foundations and target further profitable sales growth."
During the year a programme of store improvements was undertaken inspired by the retailer’s new Boutique format. This included the introduction of new branding, display and merchandising treatments across the entire Topps estate. Topps is now trading from 346 stores following 19 new openings and nine closures.
The Boutique format was extended during the year with the addition of a further eight stores, including the first two outside of London, in Cheshire.
Looking at trade sales, these increased to 50% of the total from 46% in the previous year.
Williams added: "We have made an encouraging start to the new financial year, with like for likes sales in the first eight weeks ahead by 3.3%, in line with our expectations. The group has entered the period in good shape and with a clear purpose, and we remain energised by the multiple growth opportunities open to the business in the years ahead."
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