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Topps Tiles delivers record revenue

Topps Tiles boutique store 2

Topps Tiles Plc the UK’s largest tile specialist, has announced its annual financial results for the 52 weeks ended 1 October 2016.

Financial Highlights
• Record sales of £215.0 million (2015: £212.2 million). Like-for-like sales growth of 4.2% (2015: +5.4%)
• Gross margin increased to 61.9% (2015: 61.2%) reflecting further sourcing gains and our focus on a differentiated product offer
• Adjusted profit before tax2 of £22.0 million, up by 7.8% or 10.0% on a 52 week comparable basis
• Increased final dividend of 2.5 pence per share (2015: 2.25 pence per share), making a total for the year of 3.5 pence per share (2015: 3.00 pence per share), an increase of 16.7%
• Net debt4 at period end reduced to £24.8 million (2015: £28.4 million)

Operational Highlights
• Strategy of “Out Specialising the Specialists” continues to deliver successful results
• Trade increased to 52% of total sales (2015: 50%) driven by growth of the trade loyalty programme and trend for “do it for me” 
• Sales benefiting from continued new product development – 12.6% of tile revenues generated from ranges launched in the last 12 months (2015: 9.3%)
• Digitisation of “Rewards +” trade loyalty programme to enhance offer to trade customer base
• Active management of store portfolio – 19 new openings (including 4 rebrands and 2 relocations), 15 closures, and 15 refits completed in the year, c.15 new openings expected in current financial year

Current Trading and Outlook
• The Group is now trading from 352 stores (2015: 346 stores)
• In the first eight weeks of the new financial period, Group revenues, stated on a like-for-like basis, increased by 0.8% (2015: 3.3%)
• Stable gross margin expected this year, despite significant FX headwinds  

Commenting on the results, Matthew Williams, Chief Executive said: “I am pleased to report that Topps has delivered a strong performance for the year, with our unrivalled combination of range, inspiration and convenience resonating with more customers and driving sales to a new record.

Sales growth, combined with gross margin improvements and strong cost controls, generated a 10% increase in profits and a 17% increase in dividend.  

“Like for like sales in the first eight weeks of the new financial year were ahead by 0.8%. Our proven strategy, well-invested business and market leading position, leave Topps well-placed for further progress in the year ahead.”

Download the full results press release here.

Download the full 27 page results presentation here.

Source: Topps Tiles PLC

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29 November 2016

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