REG - Topps Tiles - Q3 Trading Update

Topps TilesAnnouncement

06/07/2022 07:00

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RNS Number : 4325R  Topps Tiles PLC  06 July 2022

6 July 2022

Topps Tiles Plc

 

Q3 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 2 July 2022.

 

Group sales in the third quarter were up 9.2% year on year, including the
benefit of a full quarter of trading from Pro Tiler Tools.

 

Our omni-channel business, Topps Tiles, has continued to perform well in the
third quarter, with like-for-like sales up 2.9% over the period.  In the most
recent eleven weeks, where the comparative period in FY21 was not impacted by
trading restrictions, like-for-like sales were 0.9% lower when compared to a
very strong period of trading last year.  Sales, margins and operating costs
remain in line with our expectations.

 

Comparing to the period before the pandemic, average weekly sales per trading
store in the quarter were 28% higher than in FY19, illustrating the
significant progress made by Topps Tiles over the last three years.  Slightly
less than half of this growth is due to the transfer of sales from closed
stores as we successfully rationalised our store network with the remainder
due to underlying sales growth.

 

Within our Commercial business, sales continue to grow well despite a subdued
market, with year-on-year growth of 26% in the third quarter.  We remain
confident that the business will break even in the second half of the year and
then move into profitability in FY23.

 

We have made good progress in our new Online Pure Play businesses, with the
acquisition of Pro Tiler Tools and the launch of Tile Warehouse this year.
Sales in Pro Tiler Tools, which offers tiling-related consumables and
equipment to trade customers, were up 26% compared to the same period last
year.

 

The business remains strongly cash generative and cash balances have increased
since the half year.

 

 

Rob Parker, CEO, said: "Despite the continuing headwinds from lower consumer
confidence, supply chain challenges and high inflation, trading remained
encouraging and in line with our expectations in the third quarter, with Group
sales up 9.2%.  Sales per store in Topps Tiles remain significantly ahead of
our pre-pandemic performance, Commercial and Pro Tiler Tools are growing well
year on year, and we have successfully launched our newest brand, Tile
Warehouse.

 

"Whilst we are mindful of the current economic pressures and their impact on
the outlook for consumers, we are confident that our successful strategy,
multiple growth drivers and strong balance sheet leave us well-positioned to
deliver medium 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
markets and serving homeowners, trade customers, architects, designers and
contractors from 304 nationwide Topps Tiles stores, four commercial showrooms
and seven websites: www.toppstiles.co.uk (http://www.toppstiles.co.uk) ,
www.parkside.co.uk (http://www.parkside.co.uk) , www.stratatiles.co.uk
(http://www.stratatiles.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) and www.tilewarehouse.co.uk
(http://www.tilewarehouse.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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