Profits down for Topps Tiles in testing year

Topps Tiles has reported financial results for the first 26 weeks of the 2010/11 financial year.

The company said the economic environment remains challenging for retailers, in particular those within the discretionary spend sector, with consumer confidence continuing to be subdued. However, during the first half of our financial year our business performance has been solid and we are pleased with these results, which are in line with management's expectations.

Overall revenue decreased by 2.5% to £89.2 million (2010: £91.4 million). However, when restated on a same reporting period to last year total revenue increased by 1.5%. Like-for-like revenues have increased by 1.8%.

Overall gross margin for the Group was 59.7% compared to 58.8% last year. We are very satisfied to see such a solid improvement in gross margin, which has been driven by both an improvement in foreign currency exchange rates we have traded at and the continuing benefits of our supplier tendering programmes.

Operating costs were £44.1 million, compared to £43.5 million in the prior year. The principal driver of increased costs was an additional investment in marketing expenditure of c.£1.3 million for a national TV campaign.

During this period the business traded from an average of 312 UK stores compared to 309 in the prior interim period.

Operating profit for the period was £9.1 million (2010: £10.3 million), a decrease of 11.2% year-on-year.

The adjusted profit before tax and discontinued operations was £7.2 million (2010: £7.8 million).

Basic earnings per share were 3.85p (2010: 3.39p). Adjusting for the post tax impact of the items detailed on notes 1-3 in the highlights section the adjusted basic earnings per share were 2.76p (2010 : 3.01p).

Source : Stock Market Wire.com
www.stockmarketwire.com/article/4156146/Profits-down-for-Topps-Tiles-in-testing-year.html