Topps sales remain under pressure

(UKPA) – Jun 2, 2010

Topps Tiles, the UK's biggest tile and flooring chain, has reported a fresh fall in sales amid a continued squeeze on consumer spending.

The group, which has 317 outlets in the UK, said revenues dipped 5.1% in the seven weeks since the start of April, down 4.3% on a like-for-like basis.

The update is a reversal on the trend seen in the first six months of the company's financial year, when like-for-like revenues were up 2% against a period of weak trading a year earlier.

Announcing a 10% drop in pre-tax profits to £7.8 million for the six months to April 3, chief executive Matthew Williams said the business performed robustly in the face of uncertain trading conditions.

He added: "The economic environment remains challenging for retailers, with consumer confidence and discretionary spending continuing to show signs of weakness."

Shares dropped 4% following the update on recent trading.

Singer Capital Markets analyst Mark Photiades said: "We had suspected that there might have been a deterioration given anecdotal evidence of subdued trading in the showroom and flooring markets in the run up to the general election and the subsequent couple of weeks, along with much less favourable weather conditions compared to last year."