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Record First Half For Topps Tiles

Topps Tiles STockton 725 x 500

Topps Tiles Plc (the "Company", the “Group”, “Topps Tiles Group”), the UK's largest tile specialist, announces its unaudited consolidated interim financial results for the 26 weeks ended 2 April 2022.

Strategic and Operational Highlights

  • Topps Tiles like-for-like sales up 22.7% on a two-year basis in the first half, and up 19.7% on a one-year basis

  • Group gross margins of 56.1% (H1 2021: 57.6%), reflecting increases in cost of goods being passed through to customers on a pound for pound basis, together with mix changes
  • Costs well controlled, with increases due to inflation and normalisation of business rates expense
  • Adjusted profit up 37% year on year to £7.0 million
  • Increased stock holding to support sales in challenging supply chain environment

  • Cash lower due to acquisition of Pro Tiler, investment in working capital and repayment of deferred VAT, however expected to improve by year end
  • Interim dividend of 1.0 pence declared (H1 2021: nil)

Financial Summary

 

26 weeks ended

2 April 2022

26 weeks ended

27 March 2021

Year on year

 

(H1 2022)

(H1 2021)

 

Statutory Measures

 

 

 

Group revenue

£119.2 million

£103.2 million

15.5%

Gross margin

56.1%

57.6%

(1.5) ppts

Profit before tax

£5.6 million

£4.0 million

40.0%

Basic earnings per share

2.14p

1.55p

38.1%

Interim dividend per share

1.0p

nil

n/a

 

Adjusted Measures

 

 

 

Topps Tiles like-for-like sales year-on-year1

19.7%

2.0%

n/a

Adjusted profit before tax2

£7.0 million

£5.1 million

37.3%

Adjusted earnings per share3

2.79p

2.11p

32.2%

Adjusted net cash4

£13.4 million

£15.4 million

£(2.0) million

 

Financial Highlights

  • Topps Tiles like-for-like sales up 22.7% on a two-year basis in the first half, and up 19.7% on a one-year basis

  • Group gross margins of 56.1% (H1 2021: 57.6%), reflecting increases in cost of goods being passed through to customers on a pound for pound basis, together with mix changes
  • Costs well controlled, with increases due to inflation and normalisation of business rates expense

  • Adjusted profit up 37% year on year to £7.0 million

  • Increased stock holding to support sales in challenging supply chain environment

  • Cash lower due to acquisition of Pro Tiler, investment in working capital and repayment of deferred VAT, however expected to improve by year end=
  • Interim dividend of 1.0 pence declared (H1 2021: nil)

Current Trading and Outlook

  • Trading remains at good levels within the Topps Tiles brand, with like-for-like sales growth of 5.7% in the first seven weeks of the second half

  • In the most recent five weeks, where the comparative period in FY21 was not impacted by trading restrictions, sales on a like-for-like basis have been slightly below a very strong period last year, as expected

  • Inflationary pressures remain, with gas prices, shipping costs and availability of raw materials still challenged

  • Our strong brands, operational flexibility and well capitalised balance sheet leave us well positioned to respond to the more uncertain consumer outlook

Commenting on the results, Rob Parker, Chief Executive said:

“The Group has delivered record first half revenues against a backdrop of continued robust demand for home improvements.  While supply chain and inflation headwinds strengthened in the period, we are managing these challenges effectively overall and believe we remain well positioned relative to many of our competitors.

“We have continued to develop the Topps Tiles brand, enhancing our store portfolio and introducing a number of new developments to our award-winning website to further strengthen our omni-channel capability.

“We are pleased to announce the launch of Tile Warehouse, a new online-only brand which brings everyday low prices to homeowners.  This builds on the acquisition of Pro Tiler Ltd in March and forms the basis for a new, high growth, online-only sales channel, leveraging our core strengths in product, service and scale.

“Looking ahead, we are mindful of the growing burden on consumers from inflation and rising interest rates as well as ongoing supply chain challenges, however, we remain confident in our strategy and medium term growth prospects.”

Source : Topps Tiles PLC

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24 May 2022

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