Topps Tiles 'Pleased With Progress' As Interim Sales Increase

Topps Tiles Plc ("Topps Group", the “Company" or the “Group”), the UK's leading tile specialist, announces its unaudited consolidated interim financial results for the 26 weeks ended 29 March 2025.

Strategic and Operational Highlights

• Good progress in all five key growth areas driving ‘Mission 365’ in first half:
  
  • Modernise the trade digital experience: Trade digital experience continues to improve – trade traffic in Topps Tiles up four-fold, online trade sales up 85% and total trade sales up 12%
  
  • Expand into new coverings categories: Sales in new coverings categories up 17% and gross profit up 30% year-on-year as roll out continues
  
  • Business-to-business sales focus: CTD acquisition provides complementary, differentiated brand positions across four Group brands – Topps Tiles, Pro Tiler Tools, CTD and Parkside
  
  • Pro Tiler Tools: Pro Tiler Tools sales up 17.6%, now three times higher than levels at acquisition, and new warehouse fully operational
  
  • Tile Warehouse: Tile Warehouse sales doubled year-on-year and is the UK’s fastest growing tile specialist
  
  
• CMA investigation into CTD acquisition concluded with minimal competition concerns identified
  
  
• Investment in future growth continuing at pace, with medium-term warehousing needs secured, marketing platforms launched before year-end, and core systems replacement programme underway
  
  
• Topps Tiles delivering world class customer service, with 27,000 Google reviews in H1 at an average score of 4.92 stars
  
  
• Group online sales increased to 19.8% from 17.3% in H1 2024
  
  
• CEO recruitment process continues with good progress, announcement expected in H2 FY25 with a planned transition

Financial Summary

• Adjusted* sales up 4.1% to £127.8 million, with an improving trend across the first and second quarters
  
  
• Adjusted* gross profit up 3.0% to £68.2 million, with adjusted gross margins sequentially higher in H1 FY25 than H2 FY24 despite higher trade mix, due to due to good operational controls and strong margin management
  
  
• Adjusted* operating costs up just £1.0 million (+1.6%) despite £2.0 million of inflationary costs and £1.5 million of investment into strategic growth due to other net savings
  
  
• Adjusted* profit before tax up 3.2% at £3.2 million
  
  
• Adjusted* EPS up 8.7% as a result of full ownership of Pro Tiler from H2 2024
  
  
• CTD annualised sales of £30.3 million, with H1 underlying trading losses of £1.0 million. The business is not yet fully integrated due to the CMA investigation but there is a clear plan to move into breakeven by quarter four.
  
  
• Statutory revenue up 16.4% to £142.9 million, including sales from CTD business
  
  
• Statutory profit before tax £1.9 million (HY 2024: loss before tax of £1.5 million) including CTD trading losses, CMA-related costs and benefit of lower depreciation from impairments in FY 2024
  
  
• Balance sheet remains robust, with adjusted net debt of £1.2m at the period end, and £30 million banking facility committed until October 2027
  
  
• Interim dividend of 0.8 pence declared in line with policy, and full year dividend to be at least consistent with FY 2024 

* The financial impact of CTD has been excluded from adjusted measures in FY 2025.

Current Trading and Outlook

• Strong start to the second half, with Group adjusted sales in the first seven weeks up 9.5% year-on-year
  
  
• Topps Tiles like-for-like sales are up 6.2% and growth in other areas of the business has accelerated
  
  
• The business is well-positioned to deliver sales and profit growth this year through our differentiated offers and strong strategic execution 

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

“I am pleased with the progress we have made over the first half, which has included an improving sales trend, offsetting the majority of our inflationary cost pressures, and continuing to deliver our strategy; while also delivering a small increase in underlying profitability.  We have recently announced the conclusion of the CMA investigation into our acquisition of CTD, which will form a major part of the business-to-business element of our growth strategy moving forwards.

As we look forward to the second half, current trading shows a strong improvement in both our market leading omni-channel business, Topps Tiles, and also in the newer parts of the Group; and we have a clear plan to move CTD into profitability by the final quarter of our financial year and into growth beyond that.  As a result, we expect our full year profits to show a meaningful improvement over the prior year.”

Source : Topps Tiles

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