REG - Topps Tiles - Response to Media Comment

Topps TilesAnnouncement

02/12/2024 07:00

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RNS Number : 3123O  Topps Tiles PLC  02 December 2024

 

2 December 2024

 

Topps Tiles Plc

 

Response to Media Comment

 

Topps Tiles Plc ("Topps Group", or the "Group"), the UK's leading tile
specialist, notes recent media comment.

 

As announced in its 2024 full year results on 26 November 2024, the Group
would note the following:

 

 ·   Topps Group is continuing to take market share in a difficult trading
     environment for RMI and especially bigger ticket spend:
     -                                    In FY24, while the substantially weaker consumer environment saw Topps Group
                                          adjusted revenue decline 5.4% year on year, this was a substantial
                                          out-performance of an overall market which was estimated to be down 10-15%
     -                                    Since 2019, the UK tile market is estimated to be down c.20%, whereas Group
                                          LFL revenue has remained flat, and total revenue has increased by 14.9%
                                          through successful inorganic growth such as the Pro-Tiler acquisition
     -                                    In the first eight weeks of FY25, Group sales are up 1.2% (excluding CTD)
 ·   The Group announced strong initial progress against the five growth
     initiatives underpinning 'Mission 365', its strategic plan over the medium
     term to grow Group sales to £365 million, with an adjusted PBT margin of
     8-10%
 ·   Specifically, the Group noted the development of its trade digital offer; the
     significant expansion of its addressable market into hard surface coverings;
     increased trade B2B opportunities with the acquisition of CTD Tiles; and
     further strong growth in online pureplay, with Pro Tiler revenue up over 30%
 ·   Topps Group has invested significantly in expanding its digital operations
     over the last five years and the business is truly omni-channel with 18% of
     group revenues coming from online, and investment in the Group's digital offer
     for trade customers driving further growth
 ·   The CTD acquisition is strategically compelling as it is a trade-focused brand
     which will significantly accelerate the Group's growth in the commercial
     market. The acquisition was completed after appropriate due diligence with
     advisors
 ·   A clear strategy and robust balance sheet with £38.7 million cash headroom
     leaves the Group well placed to deliver significant medium term growth

 

 

Paul Forman, Chairman, said: "We engage with all our larger shareholders on a
regular basis and listen closely to their views. Our strategy was reviewed in
April and presented to shareholders in May, with further updates given last
week. Further expansion of our digital capabilities is at the heart of many of
these growth initiatives. Our latest results show that we continue to take
market share, consistently outperforming the wider tile market despite very
challenging trading conditions. We believe this demonstrates the effectiveness
of our strategy, which has the full support of the Board."

 

 

For further information please contact:

 

 Topps Tiles Plc
 Paul Forman, Chairman   0116 282 8000

 Rob Parker, CEO

 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 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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