Topps Tiles earnings fall but it sees pick-up in recent trading
TOPPS Tiles, the tiling specialist, reported a surprise bounce-back in like-for-like sales over the past seven weeks as Britons were more willing to get stuck into DIY projects during the wet weather.
The company, which also trades as Tiles Clearing House, enjoyed a 4.5 per cent boost in sales in the seven weeks to 19 May, sending shares up 11 per cent.
However, this contrasts with a 22 per cent fall in adjusted pre-tax profit to pre-tax profits to £5.6m in the 26 weeks to 31 March, falling short of analysts’ expectations of £6.8m.
Revenue across its 320 stores fell three per cent to £86.6m as pressure on consumer spending continued to take its toll.
Freddie George, an analyst at Seymour Pierce, said competition from new entrants posed a threat for the group, but he still expects Topps, the UK’s largest tile and wood flooring retailer, to hit full-year profits of £13m.
But he added: “We remain concerned that the DIY sheds, in particular B&Q, which has recently launched a new tile range, and other retailers, which are improving their ‘Home’ offers, will start to impact Topps’ revenues.”