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Topps Tiles Posts Second Consecutive Record Year Of Revenue

Topps Tiles Wimbledon Village 725 x 500

Topps Tiles Plc ("Topps Group", the "Company" or the "Group"), the UK's leading tile specialist, announces its unaudited annual financial results for the 52 weeks ended 1 October 2022.

Strategic and Operational Highlights

• Second consecutive record year of revenue for the Group

• Group market share increased to 19.0% from 17.6% last year - well on track to achieve '1 in 5 by 2025' goal

• 62% of Group sales to professional trade customers, up 12ppts since 2015

• Record sales in the Topps Tiles brand, with right-sized estate and ongoing growth through format development, category expansion and world class customer service

• Average sales per Topps Tiles store up 25.3% compared to 2019 levels

• A record year of sales for Parkside - now trading at breakeven and forecast to move into profit in 2023

• Pro Tiler Tools delivering strong sales and profits since acquisition in March and Tile Warehouse becoming established after starting trading in May 2022

• Strong Group recovery from Covid period - trading ahead of 2019 levels with all businesses contributing to sales growth in a developed and diversified Group 

Financial Highlights

2022 was a 52 week trading period, 2021 was a 53 week period.  Year on year variances throughout this report are not adjusted for the different time periods covered in each financial year.

 

52 weeks ended

53 weeks ended

YoY

 

1 October

2 October

 

 

2022

2021

(restated5)

 

Statutory Measures

 

 

 

Group revenue

£247.2 million

£228.0 million

+8.4%

Gross profit

£135.4 million

£130.7 million

+3.6%

Gross margin

54.8%

57.3%

(2.5)ppts

Profit before tax

£10.9 million

£14.0 million

(22.1)%

Basic earnings per share

4.60p

5.47p

(15.9)%

Final dividend per share

2.6p

3.1p

(16.1)%

Total dividend per share

3.6p

3.1p

+16.1%

 

Adjusted Measures

 

 

 

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

9.4%

19.6%

n/a

Adjusted profit before tax2

£15.6 million

£15.0 million

+4.0%

Adjusted earnings per share3

6.14p

6.02p

+2.0%

Adjusted net cash4

£16.2 million

£27.8 million

£(11.6) million

Financial Summary

• Group revenue up 8.4% to £247.2 million

• Group gross profit up 3.6% to £135.4 million with gross margin down due to business mix and inflation

• Costs well controlled, with increases due to inflation and normalisation of business rates expense offset by cost savings and reduction in store numbers

• Adjusted profit before tax up 4.0% to £15.6 million and adjusted EPS up 2.0% to 6.14 pence

• Strong operational cash flows - closing net cash lower than last year largely due to one-off items

• Strong balance sheet with £16.2 million net cash and new £30.0 million revolving credit facility, committed to at least October 2025

• Proposed final dividend of 2.6 pence per share (2021: 3.1 pence per share), giving a full year dividend of 3.6 pence per share (2021: 3.1 pence per share), up 16.1% year on year

Current Trading and Outlook

• Robust trading in the first eight weeks of the new financial year, with like-for-like sales in Topps Tiles up 3.4% year on year and other parts of the Group performing in line with our expectations

• Macroeconomic pressures remain from high inflation, low consumer confidence and weakening levels of disposable income

• Our clear growth strategy, operational flexibility and strong balance sheet leave us well-positioned to respond to a more challenging macroeconomic environment and continued delivery of our '1 in 5 by 2025' goal

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

"We are pleased to have delivered a year of strong strategic progress, with record sales for a second year running and excellent delivery against our '1 in 5 by 2025' market share goal.  We are continuing to develop and diversify the Group and further strengthening our position as the UK's leading tile specialist.

"Within our Topps Tiles brand, where the majority of sales are being made to professional tradespeople, our focus on fewer more profitable stores and category extensions has driven sales per store up 25% since 2019.  Parkside, our commercial brand, has delivered a record year of sales and now moved into profit.  Pro Tiler Tools and Tile Warehouse have added a new, high growth, online-only sales channel to the Group, leveraging our core strengths in product, service and scale.

"Looking forwards, we are mindful of the macroeconomic headwinds which will impact both UK consumers and businesses in the year ahead. Against this backdrop, our trading performance in the early weeks of the new financial year has been robust, with like-for-like sales growth in Topps Tiles over the first eight weeks of 3.4%. 

"Our market share growth during 2022, combined with our clear strategy and strong balance sheet, give us confidence that we will continue to deliver growth and create value over the medium term." 

Source : Topps Tiles

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29 November 2022

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