Topps Tiles Reports Flat Half-Year Like-for-Like Sales; Improved Q2

Topps Tiles Plc (the “Group”), the UK’s leading tile specialist, announces a trading update for the 26 week period ending 30 March 2019. The Board will announce interim results for the period on 21 May 2019.

Total revenues for the 26 week period were £108.8 million (2018: £109.4 million).

Like-for-like revenues for the 26 week period increased by 0.2%.

Trading over the second quarter has improved from the levels reported in Q1, with like-for-like sales increasing by 1.8%.  We estimate that the effect of weather conditions in the prior year and a later Easter this year has benefitted like-for-like sales over the quarter by around 1.6%. We believe that the continued execution of our strategy is enabling us to outperform the overall tile market. 

Analysis of LFL sales by quarter

Strategic Progress 

• Group – Our “Leading Product” strategy of differentiation and innovation at pace is more relevant and important today to our customers than it has ever been and is our key competitive advantage. Our iterative cycle of new product introduction has seen us launch 20 ranges so far this year, including a new porcelain tile range developed specifically for outdoor use.  We are making good progress in leveraging our buying scale and advantage into commercial with over 70% of Parkside sales sourced through ‘preferred’ Group suppliers in the first half of the year.
  
  
• Retail – our strategy of “Out Specialising The Specialists” is enabling us to continue to grow ahead of the UK tile market.  We are rolling out our latest merchandising initiatives across the estate and completed 39 mini refits during the period, bringing the total number of completed stores to 180.  We also launched “Tile Talk”, a new customer feedback system, during H1, which resulted in an overall satisfaction score of 86%, placing us in the top five retailers in the UK.  We ended the period with 361 stores trading and a further four in fit out, having opened six and closed 13 stores during the first half.  The flexibility of our store estate, with an average unexpired lease term of four years, remains a key strength that we will continue to leverage to ensure our portfolio remains closely attuned to customers’ needs.

• Commercial – our strategy of “Disrupt and Construct” is making good progress as we build our commercial business.  Underlying commercial sales in the first half have grown by around three times year on year.  During the first half we opened a flagship design studio in Clerkenwell, the heart of the London’s architect and designer community.  We continue to build our team of industry sales experts, with an additional five sales people joining the business over the period. 

Matthew Williams, Chief Executive Officer, said: “Developing and reinforcing our specialism in tiles is at the heart of our growth strategy.  I am encouraged by our overall performance in the first half and believe the successful execution of this strategy is enabling us to outperform the overall tile market. Our commercial business is growing at pace and we remain open to opportunities to accelerate its expansion.”

Source : Insight DIY Team and Topps Tiles

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