Share Preview - Topps Tiles

Tile and wood flooring specialist Topps Tiles has risen almost 10% over the last seven days, suggesting the market is expecting trading to have improved – or, at least, stopped deteriorating so quickly – since its last trading update in mid-July.

Back in July the retailer reported that like for like (LFL) sales in the third quarter (13 weeks to July 3) were down 1.2% on a year earlier, a sharp improvement on the 4.3% decline in LFL sales in the first six weeks of the quarter.

“Our Sept’10 PBT [profit before tax] estimate of £16.0m (vs consensus £15.9m) is based on a 2.0% LFL decline in the second half , with an implied LFL in Q4 of c.-2%,” said Singer Capital Markets. “This could prove fractionally overcautious, but we are not expecting profit before tax revisions,” the broker added.

Source : Sharecast