Topps Tiles Delivers Double Digit Growth

Topps Tiles Plc the UK's leading tile specialist, has announces their trading update for the 13-week period ended 26 June 2021.

Our omni-channel Retail business has performed well over the third quarter, reporting robust sales growth in the period following the re-opening of our retail stores to all customers on 12 April 2021.  On a two-year basis, Retail like-for-like sales increased by 12.9% over the third quarter as a whole, and were up 18.5% in the eleven weeks since the stores fully re-opened.  The successful launch of our extended outdoor range and increasing demand for our value offer has driven higher sales in the eleven week period and, while percentage gross margins in the period were slightly lower than previous guidance, our gross profits were strong.  We are well placed to benefit from continuing high levels of consumer demand in the home improvement sector over the coming months. 

We remain confident that we will grow sales in the Commercial business this financial year as key market sectors begin to recover.

The Group remains debt free and, as indicated at the half year, the cash position of the business improved further in the quarter following the normalisation of working capital balances as trading restrictions were removed.  We have now repaid all support received in the first half of this financial year from the Coronavirus Job Retention Scheme, and at the end of the third quarter, our cash balance has increased to £26.9 million.

Rob Parker, CEO, said: "I'm encouraged by the strength of the Group's performance in the third quarter, following the lifting of trading restrictions in mid-April. Building on the initial recovery we reported at the time of our interim results, our Retail sales strengthened further over the balance of the period.

We remain positive on the trading outlook for remainder of the financial year, and are well positioned to take advantage of increased consumer confidence and spending as we focus on our market share goal of '1 in 5 by 2025'*."

The Group will announce a trading update for the 53 weeks ending 2 October 2021 on 6 October 2021.

Source: Insight DIY & Topps Tiles

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