REG - Topps Tiles - Q1 Trading Update

Topps TilesAnnouncement

12/01/2022 07:00

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RNS Number : 1182Y  Topps Tiles PLC  12 January 2022

12 January 2022

Topps Tiles Plc

 

Q1 Trading Update

 

 

Topps Tiles Plc ("Topps" or the "Group"), the UK's leading tile specialist,
announces a trading update for the 13-week period ended 1 January 2022.

 

Trading has remained good in our omni-channel Retail business, with
like-for-like sales on a two-year basis up 21.0% in the first 13 weeks of the
year.  On a one-year basis, Retail like-for-like sales were 1.0% higher in
the first 13 weeks against a very strong comparative in FY21 (FY21: +19.9%).
Compared to last year, we saw good levels of trading extending further into
December as our customers sought to finish projects by Christmas.

 

During the quarter, we have taken significant steps to fully mitigate or pass
through cost pressures caused by higher shipping costs and general inflation
in cost of goods, thereby protecting gross profit.  However, as selling
prices will increase by a lower percentage than cost prices, we do expect
percentage gross margins to be moderately lower year on year as a result.

 

Operating costs in the business remain well controlled and in line with
forecasts, despite the ongoing pressures in areas such as utilities,
employment costs, fuel costs and taxation.

 

Our Commercial business has started the new year with good momentum and sales
in the first three months are c. 21% higher than last year.

 

Against the backdrop of global supply chain challenges, over the first quarter
we continued to hold higher levels of inventory than we have done
historically.  This stock holding and the flexibility in our supply chain
provide a buffer against the current uncertainties around the availability of
both product and shipping and we believe we are well positioned relative to
our marketplace.

 

Our stores have adapted to the additional Covid-19 control measures
implemented at the end of 2021 and at this stage, we have yet to see any
significant impact on customer behaviour.  Like many businesses, we are
currently experiencing higher levels of staff absence due to confirmed or
suspected Covid-19 infections, however our teams have responded superbly to
this challenge and our stores are well-equipped to deal with more stringent
social distancing.  Our strong operational focus and award-winning website
position us well to trade through any period of tighter restrictions.

 

The business remains well capitalised and the balance sheet is strong.

 

Rob Parker, CEO, said: "We have made an encouraging start to the new financial
year, with strong customer demand during the first quarter and like-for-like
sales growth on both a two year and one year basis against tough comparatives.
 Global supply chain challenges, higher staff absence due to Covid-19 and
material cost price inflation continue to provide significant headwinds,
however we are managing these challenges effectively.  I am confident that
our successful strategy and strong balance sheet leave us well-positioned to
deliver sustainable long term growth and our 20% market share goal of '1 in 5
by 2025'."

 

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

 Ellen Wilton

 

 

Notes to editors

 

Topps Tiles Plc is the UK's largest specialist supplier of tiles and
associated products, targeting the UK domestic refurbishment and commercial
market and serving a retail and trade customer base from 314 nationwide Retail
stores, 5 Commercial showrooms and three trading websites:
www.toppstiles.co.uk (http://www.toppstiles.co.uk) , www.parkside.co.uk
(http://www.parkside.co.uk) and www.stratatiles.co.uk
(http://www.stratatiles.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 http://www.toppstilesplc.com/
(http://www.toppstilesplc.com/)

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