REG - Topps Tiles - Q3 Trading Update

Topps TilesAnnouncement

Wed 07:00

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RNS Number : 2823P  Topps Tiles PLC  02 July 2025

 

2 July 2025

Topps Tiles Plc

 

Q3 Trading Update

 

Strong trading momentum continues

 

Topps Tiles Plc ("Topps Group", or the "Group"), the UK's leading tile
specialist, announces a third quarter trading update for the 39-week period
ended 28 June 2025.

 

Strong trading momentum has continued through the third quarter.  Group
adjusted sales(1) were up 10.1% in the third quarter, a notable acceleration
compared to 4.1% growth in the first half.  On a year-to-date basis, Group
adjusted sales were 6.1% higher year-on-year.

 

The sales trajectory has improved across all divisions in the Group, with
Topps Tiles, Parkside and Online Pure Play (Pro Tiler Tools and Tile
Warehouse) all delivering higher growth rates in the most recent quarter than
in the first half.  Like-for-like sales(2) in the Topps Tiles brand increased
7.3% in the third quarter and are up 4.4% on a year-to-date basis.  Trade
sales remain stronger than homeowner sales, although sales to homeowners are
also showing signs of improvement.  The stronger sales growth was underpinned
by further increases in Topps Tiles' active trade customers(3), up 12%
year-on-year to 150,000, and Group online sales, which accelerated from 19.8%
of adjusted sales in the first half to 21.9% of adjusted sales in the third
quarter.

 

Adjusted gross margins continue to improve and we expect Group adjusted gross
margin in the second half to be slightly higher than in the first half of the
year.  As previously noted, the cost environment does continue to remain
challenging, with c. £4 million of further cost increases on an annualised
basis from April 2025 as a result of the recent changes to National Insurance
rates and thresholds, together with the increase in National Living Wage.  In
addition, the Group expects performance-related pay to be higher in the second
half, as profits increase.  Given the strong growth in sales, improved gross
margins and cost management actions, the Group expects operating costs in the
second half to grow at a lower rate than gross profits.

 

Rapid progress has been made in CTD since the conclusion of the CMA
investigation and the Group remains confident that CTD will be at least
breakeven by the fourth quarter(4).  Following this period of stabilisation,
the Group will seek to meaningfully grow this strategically important business
in 2026 and beyond, particularly expanding the Group's activities with larger
contractors, commercial partners and housebuilders.

 

Good strategic progress continues across the five main growth levers which
will deliver the Group's 'Mission 365' goal: modernising the trade digital
experience, expanding into new coverings categories, increasing the
business-to-business sales focus, growing Pro Tiler Tools and establishing
Tile Warehouse.  During the quarter, the business has been preparing to
relaunch the Topps Tiles trade website, providing enhanced functionality, and
is in the final stages of preparation for the launch of a new customer
engagement platform, which will provide a step-change in the Group's ability
to interact digitally with customers, including personalised marketing.

 

The continued progress made in all aspects of the Mission 365 plan give the
Group confidence in its ability to deliver meaningful growth in sales and
profits, this year and into the medium term.

 

Notes:

1 Group adjusted sales exclude sales from the CTD brand.

2 Topps Tiles like-for-like sales are defined as sales from Topps Tiles stores
that have been trading for more than 52 weeks and sales made through Topps
Tiles' digital channels.

3 Active trade customers are registered trade customers in Topps Tiles who
have shopped with the brand in the last 12 months.

4 The performance of CTD has been excluded from all adjusted performance
metrics in FY25.

 

For further information please contact:

 

 Topps Tiles Plc
 Rob Parker, CEO         0116 282 8000

 Stephen Hopson, CFO
 Citigate Dewe Rogerson  +44 (0) 20 7638 9571
 Angharad Couch          toppstiles@cdrconsultancy.com

 

 

 

Notes to Editors

 

Topps Tiles Plc is the UK's largest specialist supplier of tiles and
associated products, targeting the UK domestic, commercial and housebuilder
markets and serving homeowners, trade customers, contractors, architects and
designers from 297 nationwide Topps Tiles stores, a commercial showroom in
London, the CTD store estate 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)

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