Topps Tiles grows ahead of the market

Topps Tiles Plc, the UK’s largest tile specialist with 343 stores, today announced its interim results for the 26 weeks ended 28 March 2015, with the following highlights:-

• Total sales growth of 6.4%, with like-for-like sales ahead by 5.3%

• Gross margin of 60.7% (2014: 60.8%) with underlying gains offset by growth of lower margin trade business.

• Adjusted EPS growth of 14.0% year on year (2014: 76%)

• Net debt reduced by £5.3 million year on year to £31.0 million at 28 March

• Interim dividend increased by 15.4% to 0.75p (2014: 0.65p)

• Growth ahead of the tile market – reflecting successful focus on taking profitable market share.

• Trade sales increased to 48.3% of total (2014: 44.0%) driven by accelerating “do it for me” trend and extension of successful trade loyalty scheme

• Completed roll-out of updated branding to all stores

• Launch of new online “tile visualiser” and tablet PCs across the estate to enhance the in-store

• Extension of Topps Tiles Boutique store trial – two further stores opened in Knutsford and St John’s Wood with plans to be trading from 12-13 stores by year end.

Commenting on the results, Matthew Williams, Chief Executive said:

“Topps had an encouraging first half, increasing like-for-like sales by 5.3% and achieving further growth in market share. Initiatives to upgrade and rebrand our stores, making the shopping experience even more inspirational, have been well-received by customers. Our well-established trade offer is also ensuring that we keep pace with the accelerating “do it for me” trend, as more customers than ever use a professional fitter for their tiling project.

We have made a positive start to the second half, with like-for-like sales up by 5.1% in the first six weeks of the period. Looking ahead, we are well-positioned to grow our market share further as we continue to extend the appeal of the Topps brand." 

Source: Topps Tiles media centre.

Download the full interim report here.