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Topps Tiles: Third Consecutive Year Of Record Sales

Topps Tiles Stockton 725 x 500
  • Third consecutive record year of sales, ‘1 in 5 by 2025’ market share goal delivered two years ahead of schedule 

Topps Tiles Plc ("Topps Group", the “Company" or the “Group”), the UK's leading tile specialist, announces its unaudited consolidated annual financial results for the 52 weeks ended 30 September 2023. 

Strategic and Operational Highlights

  • Third consecutive record year of revenue for the Group
  • ‘1 in 5 by 2025’ market share goal achieved two years early, with market share increasing to 22.1% from 19.8% in 2022 (restated)
  • New Topps Group branding, underscoring the significant development and diversification of the Group over recent years
  • Record sales in Topps Tiles, with sales per store up 30% compared to pre-pandemic levels, further improvements to world-class customer service scores, and successful expansion into new product categories
  • Good progress in Topps Tiles’ gross margin, with quarter-on-quarter growth throughout the year (before rebates and other adjustments)
  • Excellent progress in Pro Tiler online pure play businesses, with sales up c. 50% year on year and 8-9% profit margins delivered
  • Parkside restructure complete and now profitable in the final quarter
  • New Chair appointed and new Senior Independent Director Designate announced 

Financial Highlights

 

52 weeks ended

52 weeks ended

YoY

 

30 September

1 October

 

 

2023

2022

 

Adjusted Measures

 

 

 

Topps Tiles like-for-like revenue year on year1

3.1%

9.4%

n/a

Adjusted profit before tax2

£12.5 million

£15.6 million

(19.9)%

Adjusted earnings per share3

4.49p

6.14p

(26.9)%

Adjusted net cash at period end4

£23.4 million

£16.2 million

+£7.2 million

 

 

 

 

Statutory Measures

 

 

 

Group revenue

£262.7 million

£247.2 million

+6.3%

Gross profit

£139.2 million

£135.4 million

+2.8%

Gross margin %

53.0%

54.8%

(1.8)ppts

Profit before tax

£6.8 million

£10.9 million

(37.6)%

Basic earnings per share

1.63p

4.60p

(64.6)%

Final dividend per share

2.4p

2.6p

(7.7)%

Total dividend per share

3.6p

3.6p

Flat

Financial Summary

  • Group revenue up 6.3% to £262.7 million
  • Group gross profit up 2.8% to £139.2 million
  • Group gross margin at 53.0%, with growth through the year driven by increasing margin in Topps Tiles
  • Adjusted profit before tax of £12.5 million due to the impact of cost inflation
  • Cash increased £7.2 million, due to strong operational cash flows and disciplined working capital management
  • Strong balance sheet with £23.4 million net cash and £53.4 million headroom within committed borrowing facilities
  • Final dividend of 2.4 pence per share, maintaining the full year dividend at 3.6 pence, reflecting confidence in the medium-term prospects of the business 

Current Trading and Outlook

  • Trading in the early weeks of the new financial year has reflected the well-documented challenges to discretionary consumer spending, especially RMI, including higher interest rates and prolonged high inflation, falling house prices and lower housing transactions
  • Softer build into the seasonal peak trading period, with Group sales down 3.0% year on year in first eight weeks of the new financial year with like-for-like sales in Topps Tiles down 6.1% and strong growth continuing in Pro Tiler Tools
  • Well-positioned to continue to take market share due to competitive advantages, including market-leading brands, world-class customer service, specialist expertise, strong balance sheet, growing cash position and ambitious growth strategy 

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

“This has been a further year of strategic progress for the Group and we are delighted to have delivered a third consecutive year of record sales and to have achieved our ‘1 in 5’ market share goal two years ahead of schedule.  While profitability for the year reflects the impact of inflation on our cost base, particularly during the early months of the period, these pressures began to abate in the second half, with the smaller store estate and the cost reduction plan at Parkside providing further mitigation.  

“As we enter our new financial year, it is clear that there has been a weakening of discretionary consumer spending.  The business is well positioned to deal with this period, our established brands are market leading, we are competitively advantaged and we are confident that we will continue to take market share.  When combined with a strong balance sheet, this will support the Group’s ambitions over the medium term.  Topps Group continues to develop and diversify and we remain excited by the opportunities ahead of us.” 

1Topps Tiles like-for-like revenue is defined as sales from Topps Tiles stores that have been trading for more than 52 weeks and www.toppstiles.co.uk.

2 Adjusted profit before tax excludes the impact of items which are either one-off in nature or fluctuate significantly from year to year. See the financial review section of this document for a reconciliation of adjusted profit before tax to statutory profit before tax.

3 Adjusted earnings per share is adjusted for the items highlighted above, plus the impact of corporation tax.  In 2022, adjusted earnings per share also excluded a £1.2 million deferred tax credit in respect of previous periods which is not expected to repeat.

4 Adjusted net cash is defined as cash and cash equivalents, less bank loans, before unamortised issue costs as at the balance sheet date.  It excludes lease liabilities under IFRS 16.

Source : Topps Tiles PLC

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27 November 2023

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