Topps Tiles: Interim Management Statement

Topps Tiles Plc has today released its unaudited interim management report for the 26 weeks ended 31 March 2012.

The full release can be seen on our Industry Articles page (http://www.insightdiy.co.uk/articles.asp), however a selection of the highlights can be found below:

26 weeks ended 31 March 2012 / 26 weeks ended 2 April 2011

Group Revenue: £86.6 million / £89.2 million
Like-for-like revenue: - 4.7% / +1.8%
Gross margin: 59.7% / 59.7%
Adjusted operating profit1 : £7.1 million /£9.3 million
Adjusted profit before tax2: £5.6 million / £7.2 million
Basic earnings per share: 1.94p / 3.85p
Adjusted earnings per share3: 2.14p / 2.76p
Interim dividend: 0.50p / 0.50p
Net debt4: £46.3 million / £50.0 million

HIGHLLIGHTS:

• First half performance in line with expectations, in trading conditions which remain challenging
• Focus on strengthening our market leading position by improving customer service, enhancing the product range and maximising sales opportunities
• Like for like revenues decreased by 4.7%, in line with expectations and, in part, reflecting tougher comparatives in H1 2011
• Further prudent development of store estate, with 5 new Topps Tiles stores opened and 7 Tile Clearing House stores converted to the more profitable Topps format
• Net debt reduced by £4.7 million from year end to £46.3 million at 31st March, with £10 million of undrawn banking facilities
• Current trading - like for like sales over 7 weeks to 19th May +4.5% (2011: -2.1%)

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

"We are pleased to be reporting a first half performance which is in line with expectations, notwithstanding the more challenging comparatives from 2010/11. In the environment of continuing low levels of consumer confidence and housing transactions, we have been, and continue to be, focused on optimising returns from the existing store estate whilst continuing to make the investments necessary to support longer term growth.

"In the last seven weeks we have been encouraged by trading which has seen like for like sales increase by 4.5%, although it is too early to determine whether this marks the beginning of a broader trend.

"We expect trading conditions for retailers in the discretionary spend sector to remain challenging during the second half. Against this background we will continue to move the business forwards prudently focusing on driving longer term growth, improving gross margins, further promoting our brand and delivering our financial and operational objectives."

Source : Topps Tiles Plc
www.toppstiles.co.uk/comms-centre/investors.asp