REG - Topps Tiles - Q4 Trading Update

Topps TilesAnnouncement

02/10/2024 07:00

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RNS Number : 5492G  Topps Tiles PLC  02 October 2024

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO
CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION
(EU) NO. 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW PURSUANT TO THE EUROPEAN
UNION (WITHDRAWAL) ACT 2018, AS AMENDED. UPON THE PUBLICATION OF THIS
ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS
CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

2 October 2024

 

 

Topps Tiles Plc

 

Q4 Trading Update

 

Topps Tiles Plc ("Topps Group", or the "Group"), the UK's leading tile
specialist, announces a trading update for the 52-week period ended 28
September 2024.

 

Group sales for the year, excluding revenues from the assets acquired from the
administrators of CTD(1), were approximately £248 million, a decline of 5.7%
from the Group record high of £263 million reported in the previous year and
broadly in line with the year ending September 2022. Group sales in the fourth
quarter were 4.4% lower(1), a slight improvement on the trends seen across the
rest of the year, largely reflecting the weaker comparatives from the end of
FY23.

 

The trading environment remained very challenging across the whole year with
continued weak demand in the domestic Repair, Maintenance and Improvement
("RMI") sector, especially for bigger ticket projects. As previously
announced, we believe that the market has declined by 10-15% year-on year,
indicating that the Group has continued to outperform the wider market.

 

Like-for-like sales(2) in Topps Tiles were 8.2% lower year-on-year in the
fourth quarter with trading levels remaining stable. Like-for-like sales(1)
for the year were 9.1% lower year-on-year.  Sales to trade customers have
continued to be more resilient than sales to homeowners.

 

The remainder of our Group operations have performed significantly ahead of
the market with this progress being driven by our Online Pure Play operations
which are continuing to grow robustly.

 

In August 2024, we announced the acquisition of the CTD Tiles brand, certain
assets, direct selling teams and 30 stores for £9 million.  Following
receipt of an initial information request from the Competition and Markets
Authority, the CMA has informed us that it intends to review the acquisition
under UK merger control and we are now working with the CMA in connection with
this process.

 

Rob Parker, Topps Group CEO said: "We remain focused on the delivery of our
new Mission 365 goal(3).  In a year that has proved challenging in many ways,
I am pleased by how well our teams have responded to the weaker market,
demonstrating both our resilience and our ability to continue to outperform. I
am also satisfied that despite these challenges we have been able to continue
to deliver against our strategy and take opportunities as they have arisen,
supported by our strong balance sheet."

 

"Looking ahead, macro-economic indicators point to a stronger market in 2025.
While the timing and trajectory of the recovery remains hard to predict, we
are confident that our clearly articulated and proven strategy will enable the
further development of the Group in all market conditions."

 

The Group will report its results for the 52-week period ended 28 September
2024 on 26 November 2024.

 

 

Notes:

1 Group sales for FY24 are stated before year end accounting adjustments
including revenue recognition, loyalty scheme accounting and customer returns
provisions. Group sales exclude the impact of the CTD business which was
acquired on 19 August 2024.

2 Topps Tiles like-for-like sales is defined as online sales and sales from
Topps Tiles stores that have been trading for more than 52 weeks.

3 Goal to grow Group sales to £365 million per annum in the medium term

 

 

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

 

The person responsible for arranging the release of this announcement on
behalf of Topps Tiles is Rob Parker, CEO.

 

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 301 nationwide Topps Tiles stores, 30 CTD Tile stores, a range of direct
business to business selling teams, 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
(http://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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