Topps Tiles Q3 Trading 'Ahead of Expectations'

Topps Tiles Plc (the "Group"), the UK's leading tile specialist, announces a trading update for the 13 week period ended 27 June 2020.

Retail trading over the third quarter improved significantly as stores re-opened, with average sales per week growing from £0.8 million during April (when all stores were closed) to £3.9 million in the final week of June when all stores were trading, which was 5.4% below the same week in the prior year on a like for like basis.  The Board is pleased by this performance, which was ahead of its revised expectations following the outbreak of Covid-19.  

Average Weekly Sales

Third Quarter Highlights

Retail

• Majority of stores opened from end of May with enhanced health and safety protocols in place to safeguard colleagues and customers
• Social distancing measures in stores not a significant constraint on trade due to relatively low customer footfall and availability of space in stores to browse
• Retail performance in the third quarter ahead of revised expectations due to accelerated pace of store re-openings and better than expected customer demand
• Retail website has performed robustly with sales across the quarter 139% ahead of the prior year, leveraging the Group’s recent investment in its online platform

Commercial

• Commercial sales for the quarter were £1.4 million, which was 16% below the prior year and 39% below the previous quarter
• Activity levels across June have increased steadily as the construction industry has returned to work

Cash, Debt & Liquidity

• Sale and leaseback – central office and warehouse facility disposed of during the period for £18.1 million, further strengthening Group liquidity
• Encouraged by overall Q3 liquidity, with rate of sales recovery and cash performance ahead of initial expectations
• Period end net cash of £3.9 million and available cash headroom of £52.9 million (including conclusion of additional CLBILS £10 million loan facility in the period)

Rob Parker, Chief Executive, said: "I am pleased with the resilience shown by the business through this period and I would like to thank colleagues across the Group for their hard work and dedication which ensured that, by the end of June, all Topps stores were back open and serving our customers safely. 

“The Group has demonstrated its resilience, with revenues ahead of our expectations, and we have strengthened our financial liquidity through the sale and leaseback of our central warehouse and head office facility. 

“Looking ahead, from our market leading position and with a firm financial footing, Topps is well-positioned as the economy begins to recover.”  

Source : Topps Tiles

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