REG - Topps Tiles - First Half Trading Update

Topps TilesAnnouncement

02/04/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250402:nRSB2182Da&default-theme=true

RNS Number : 2182D  Topps Tiles PLC  02 April 2025

 

2 April 2025

Topps Tiles Plc

 

First Half Trading Update

 

Accelerating LFL sales growth in Q2; strong progress on Trade and Digital

 

 

Topps Tiles Plc ("Topps Group", or the "Group"), the UK's leading tile
specialist, announces a trading update for the 26-week period ended 29 March
2025.

 

Group sales (excluding CTD(1)) in the first half were £127.7 million(2), 4.0%
higher than the previous year, with underlying sales growth(3) in the second
quarter of 4.4% after adjusting for the timing of holiday periods, up from
3.3% underlying growth(3) in the first quarter.  While trading through
January was slower, volumes began to build progressively thereafter, with this
improving trend culminating in a strong performance in March, when the Group's
underlying sales(3) (excluding CTD) increased by a high single digit
percentage compared to the previous year.

 

Underlying like-for-like sales(3) within the Topps Tiles brand were 3.7%
higher year-on-year in the second quarter and like-for-like sales were 3.0%
higher in the first half overall.  While homeowner sales remain subdued,
trade sales within Topps Tiles were strong and progress with our digital
initiatives continued at pace, in line with our 'Mission 365' growth
strategy.  Total trade sales in the Topps Tiles brand were 12% higher year on
year in the first half, with the number of active traders at the end of the
period up 11% year on year to 146,000.  Sales made through Topps Tiles'
digital channels were up 15% in the first half, and online trade traffic was
up approximately four-fold.  Strategically, the brand continued to make good
progress with the development of its new customer engagement platform and
trade app, which will launch in 2025 and 2026 respectively.

 

Sales in Pro Tiler Tools and Tile Warehouse continued to grow strongly year on
year.

 

The Group's focus on rebuilding profitability, including a review of product
pricing, product mix and discount structures has, in recent weeks, delivered a
strong improvement in gross margins, despite the continued increases in trade
mix.

 

The Group also made good progress with its other 'Mission 365' growth
initiatives, with additional category extensions, including the in-store
launch of splashbacks and acoustic panels, and increasing clarity on the
Group's B2B strategy.  Operationally, the new 140,000 square foot warehouse
in Northampton has been performing well and has supported Pro Tiler Tools'
continued strong sales growth trajectory.  In addition, the CTD supply chain
operation has now been relocated to this facility, enabling the closure of the
existing CTD warehousing during the period.  More widely, further investments
are being made into the Group's core systems and marketing platforms to enable
future sales growth.

 

The external cost environment remains challenging, including the forthcoming
increases in National Living Wage and National Insurance which will
collectively increase the Group's cost base by c. £4 million on an annualised
basis from April 2025.  As announced in the 2024 results, the timing of
holiday pay accruals (exacerbated by the later Easter year on year),
seasonally higher energy usage in the first half, investments in strategic
growth and the timing of the sales recovery will result in the Group's profits
in 2025 being weighted significantly towards the second half of the financial
year.

The Group has made good progress in identifying potential candidates to
succeed Rob Parker as Chief Executive, with a high degree of interest
expressed.

 

In relation to the acquisition of CTD, as previously reported the Group is
pleased to note that the CMA has approved in principle its proposed
undertakings to dispose of four stores in lieu of a Phase II investigation.

 

 

Rob Parker, Chief Executive, said: "Following our return to sales growth in
the early weeks of the year, we are pleased to see this trend accelerate in
the second quarter, driven by some initial signs of success from our new
strategic initiatives, including an improved trader digital experience and
further category extensions.  Whilst macroeconomic indicators remain mixed,
we remain focused on the delivery of our strategy which we are confident will
lead to the achievement of our Mission 365 goal over the medium term."

 

 

The Group will announce its half year results on Tuesday 20 May 2025.

 

 

Note 1 - The Group's acquisition of the brand and certain assets of CTD Tiles,
as announced on 19 August 2024, remains under investigation by the Competition
and Markets Authority, and the Group is therefore unable to report on the
financial performance of this part of the Group.

 

Note 2 - All revenue numbers are stated before accounting adjustments
including revenue recognition adjustments and customer returns provisions
which will be included in the Interim Results.

 

Note 3 - Both the first and second quarters have been impacted by the movement
in holiday dates, with the first quarter this year supported by fewer
Christmas holiday days when compared to last year, and the second quarter
supported by the movement of Good Friday into Q3.  The net estimated impact
of the period end movement on Group sales by quarter is shown below:

 

 Year to September 2025                 Weeks 1-13  Weeks 14-26  Weeks 1-26

 Group sales excluding CTD
 Reported year-on-year sales growth     4.6%        3.3%         4.0%
 Estimated impact of period end timing  1.3%        (1.1)%       0.1%
 Underlying year-on-year sales growth   3.3%        4.4%         3.9%

 

 

 

For further information please contact:

 

 Topps Tiles Plc
 Rob Parker, CEO         0116 282 8000

 Stephen Hopson, CFO
 Citigate Dewe Rogerson
 Kevin Smith             020 7638 9571

 

Notes to Editors

 

Topps Tiles Plc is the UK's largest specialist supplier of tiles and
associated products, targeting the UK domestic and commercial markets and
serving homeowners, trade customers, architects, designers and contractors
from 299 nationwide Topps Tiles stores, a commercial showroom in London and
nine customer-facing websites: www.toppstiles.co.uk
(http://www.toppstiles.co.uk) , www.parkside.co.uk (http://www.parkside.co.uk)
, www.protilertools.co.uk (http://www.protilertools.co.uk) ,
www.northantstools.co.uk (http://www.northantstools.co.uk) ,
www.premiumtiletrim.co.uk (http://www.premiumtiletrim.co.uk) ,
www.warmfloorstore.co.uk (http://www.warmfloorstore.co.uk)
www.flooringmaterials.co.uk (http://www.flooringmaterials.co.uk) ,
 www.tilewarehouse.co.uk (http://www.tilewarehouse.co.uk) and
www.ctdtiles.co.uk.

 

Since opening its first store in 1963, Topps has maintained a simple operating
philosophy ‐ inspiring customers with unrivalled product choice and
providing exceptional levels of customer service.  For further information on
the Group, please visit www.toppsgroup.com (http://www.toppsgroup.com)

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTBLGDSGGGDGUB