Topps Tiles reports record sales of £212.2m

Topps Tiles Plc (“Topps”, “Topps Tiles” or “the Group”), the UK’s largest tile specialist, announces its annual financial results for the 53 weeks ended 3 October 2015.

Financial Highlights

● Record sales of £212.2m. Like-for-like sales growth of 5.4%
● Gross margin increased to 61.2% (2014: 60.9%) reflecting further sourcing gains and our focus on a differentiated product offer
● Adjusted profit before tax2 of £20.4 million, up by 19.3%
● Increased final dividend of 2.25 pence per share (2014: 1.6 pence per share), making a total for the year of 3.00 pence per share (2014: 2.25 pence per share), an increase of 33%
● Net debt4 at period end reduced to £28.4 million (2014: £30.5 million)

Operational Highlights

● Strategy of “Out Specialising the Specialists” continues to deliver successful results
● Strategic goal of taking £1 in every £3 spent in the UK domestic tile market achieved one year early - seventh consecutive year of market share gains
● Trade sales increased to 50% of total (2014: 46%) driven by growth of our trade loyalty programme and trend for “do it for me”
● Sales benefiting from increased investment in new product development – 9.3% of tile revenues generated from ranges launched in the last 12 months
● Multiple initiatives to extend the appeal of the Topps brand underway, including:
- A programme of ‘all store improvements’, inspired by the Boutique format, to introduce new branding, display and merchandising treatments across the entire Topps estate
- Active management of store portfolio – 19 new openings, 9 closures, 2 relocations and 13 refits completed in the year
- Encouraging overall progress made with Boutique format, with further work planned in the year ahead to optimise performance

Current Trading and Outlook

● The Group is now trading from 346 stores (2014: 336 stores)
● In the first eight weeks of the new financial period, Group revenues, stated on a like-for-like basis, increased by 3.3% (2014: 5.8%)

Commenting on the results, Matthew Williams, Chief Executive said: “I am pleased to report that Topps delivered a strong performance for the year, with our focus on convenience, inspiration and range driving sales to a new record and enabling us to hit our strategic goal of a one third share of the domestic tile market a year ahead of schedule. Our strategy of ‘Out-Specialising the Specialists’ continues to be very effective and will remain at the heart of what we do as we seek to build on these foundations and target further profitable sales growth.

“We have made an encouraging start to the new financial year, with like for likes sales in the first eight weeks ahead by 3.3%, in line with our expectations. The Group has entered the period in good shape and with a clear purpose, and we remain energised by the multiple growth opportunities open to the business in the years ahead.”

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Source : Topps Tiles Press Release
www.toppstiles.co.uk