REG - Topps Tiles - Annual Financial Results
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RNS Number : 7698J Topps Tiles PLC 02 December 2025
2 December 2025
Topps Tiles Plc
Annual Financial Results
Topps Tiles Plc ("Topps Group", the "Company" or the "Group"), the UK's
leading tile specialist, announces its unaudited consolidated annual financial
results for the 52 weeks ended 27 September 2025.
Strategic and Operational Highlights
· Market beating performance with clear progress towards our goal of 'Mission
365' - new record year of sales at £295.8 million and 40% of revenue growth
goal achieved
· Strong strategic progress against five key areas of growth - category
expansion, Topps Tiles trader digital experience, business-to-business, Pro
Tiler, and Tile Warehouse
· Trade growth of 28.3% year-on-year (+14.3% excluding CTD), trade sales now
approximately 75% of Group sales
· Group digital penetration (excluding CTD) of 21.1%, up from 18.5% in FY24
· CTD - CMA investigation concluded, requirement to dispose of four stores -
three complete with one imminent, 22 stores remaining, operations fully
integrated, growth plans developed and business to move into profit in FY26
· The Group has acquired the Fired Earth brand, IP, website and an estimated
£2.5 million of stock for a consideration of £3 million in November 2025,
adding a complementary premium brand to the Group
· New CEO, Alex Jensen, to assume full responsibility on 8 December, as current
CEO Rob Parker retires from the business.
· CFO appointment - Caroline Browne joining in spring 2026. Currently Group
Finance & Investor Relations Director at Watches of Switzerland Group Plc.
Previous roles include Group Financial Controller at Next Plc and senior
finance positions at Boots.
Financial Highlights
· Adjusted revenue(1) up 6.8% to £265.4 million, with each part of the business
delivering growth
· Adjusted profit before tax(1) up 46.0% at £9.2 million, with adjusted* EPS(1)
up 43.5% to 3.43 pence per share
· Final dividend proposed of 2.1 pence, full year of 2.9 pence, representing a
payout ratio of 85% of adjusted EPS, a 20.8% increase YoY
· Dividend supported by robust balance sheet with adjusted net cash of £7.4m at
the period end, and £30 million banking facility committed until October 2027
· Statutory revenue up 17.5% to £295.8 million, including sales of £30.3
million from CTD
· Statutory profit before tax £8.3 million (FY24: loss before tax of £16.2
million) including CTD related costs, a material write back of IFRS 16 related
impairments and management transition costs
52 weeks 52 weeks ended YoY
ended
27 September 2025 28 September 2024
(FY25) (FY24)
Adjusted Measures
Adjusted revenue(1) 265.4 248.5 +6.8%
Topps Tiles like-for-like revenue year on year(2) +5.3% (9.1)% n/a
Adjusted gross margin %(1) 53.8% 53.3% +0.5%
Adjusted profit before tax(1) £9.2 million £6.3 million +46.0%
Adjusted earnings per share(1) 3.43p 2.39p +43.5%
Adjusted net cash at period end(3) £7.4 million £8.7 million £(1.3) million
Statutory Measures
Group revenue £295.8 million £251.8 million +17.5%
Gross profit £154.3 million £134.3 million +14.9%
Gross margin % 52.2% 53.3% (1.1)ppts
Profit/(loss) before tax £8.3 million £(16.2) million n/a
Basic earnings/(loss) per share 3.05p (6.63)p n/a
Final dividend per share 2.1p 1.2p +75.0%
Total dividend per share 2.9p 2.4p +20.8%
* The financial impact of CTD has been excluded from adjusted measures in
FY25.
Current Trading and Outlook
Group sales growth in first nine weeks (excl. CTD) are up 3.3% year-on-year
with Topps Tiles like-for-like sales up 2.0%. CTD stores are delivering
consistent LFL growth and we are confident in delivering a profit in CTD for
FY26.
Sales growth over the first nine weeks of the new financial year have
moderated due to weaker consumer confidence. As an established market leader
the business is well positioned and we remain confident in our growth strategy
and goal of Mission 365.
The Group is pleased to announce the successful acquisition of the Fired Earth
brand, associated IP, website and a provisional £2.5 million of stock, for a
total cash consideration of £3 million in November 2025. The Fired Earth
brand represents a significant opportunity for the Group, strengthening our
digital presence and adding a premium brand to our homeowner and trade
customer offering.
Commenting on the results, Rob Parker, Chief Executive said:
"In what will be my final year with the business I am pleased to deliver a
strong set of financial results and strategic progress. The business has
delivered a new record year of sales, combined with a strong increase in
profits and dividends. Our strategy and growth plans are working well and we
are making excellent progress towards our Mission 365 goal. I wish my
successor, Alex Jensen, the very best as she takes the Group on to the next
stage of our exciting growth plans."
Alex Jensen, Chief Executive Designate, added:
"This is a very encouraging set of results, and the team worked hard to ensure
each business delivered strongly against the prior year. I am grateful to
Rob for the foundations he's laid down and I look forward to working with the
team to build on this progress, accelerate our digital momentum, and harness
the team's expertise to maximise value for all stakeholders. I'm excited to
bring the Fired Earth brand into our portfolio to further accelerate delivery
of our Mission 365 goal. I'm also delighted that Caroline Browne has been
appointed as the Group's new CFO. Caroline's extensive retail experience and
proven ability will be invaluable as we continue to execute our growth
strategy and strengthen our market position."
Notes
1 Adjusted revenue, gross margin %, operating profit, profit before tax and
earnings per share exclude the impact of items which are either one-off in
nature or fluctuate significantly from year to year. The performance of CTD
has been excluded from adjusted metrics due to disruption caused by the CMA
investigation. Refer to the financial review section of this document for
more details on each of these measures.
2 Topps Tiles like-for-like revenue is defined as revenue from Topps Tiles
stores that have been trading for more than 52 weeks and revenue transacted
through Topps Tiles' digital channels.
3 Adjusted net cash is defined as cash and cash equivalents, less bank loans,
before unamortised issue costs as at the balance sheet date. It excludes lease
liabilities arising from IFRS 16.
For further information please contact:
Topps Tiles Plc (2/12/25) 020 7638 9571
Rob Parker, CEO (Thereafter) 0116 282 8000
Alex Jensen, CEO Designate
Citigate Dewe Rogerson 020 7638 9571
Angharad Couch
SUMMARY OF GROUP OPERATIONS
Topps Group is the largest specialist distributor of tiles and related
products in the UK. Approximately 75% of sales across the Group are made to
trade customers, including tilers, general builders and contractors, with the
remaining 25% to domestic homeowners. The majority of the Group's sales are
ultimately related to work in the domestic repair, maintenance and improvement
(RMI) sector, with the balance of sales relating to commercial projects,
infrastructure and new build housing.
The Group owns a number of brands which target different customer groups
within this market. The largest is Topps Tiles, the market-leading,
omni-channel brand, which was founded in 1963 and, with its rich history and
297 stores, has strong brand recognition across the UK, serving both trade and
homeowner customers. Pro Tiler Tools is the tile industry's leading online
pure play brand focused on trade customers, offering a wide range of
trade-focused essentials items and a deep product specialism, at
market-leading pricing. The Parkside brand operates in the commercial market
which includes tiles supplied across sectors such as leisure, retail,
hospitality, infrastructure and offices, where product specification is often
heavily influenced by the architect and designer community. Tile Warehouse
is an online pure play brand aimed at more budget-conscious homeowner
customers. CTD joined the Group in August 2024 and has over 50 years of
experience serving the trade, the commercial market, and the housebuilder
sector. Across the brand portfolio, the Group offers differentiated
physical, digital and direct selling channels to all customer types in the
tile market.
All of our brands derive benefit from the scale of the Group, the specialist
focus of our business model and our passion for tiles. We enjoy a
competitive advantage in sourcing differentiated products from around the
world that we often access on an exclusive basis. Our growth strategy is
underpinned by our people strategy, which delivers world-class customer
service across the Group, our operational & digital excellence strategy,
including a high-quality, specialist supply chain and ongoing investment in
systems, and our environmental leadership strategy, including our goal of
being carbon neutral across Scope 1 and 2 emissions by 2030.
PURPOSE, GOAL & STRATEGY
The core purpose of Topps Group is to inspire customers through our love of
tiles. This gives us a very clear focus on our specialism in tiles and
associated products and encourages all our colleagues to be passionate about
the products we sell. It also puts our customers at the heart of what we do
and reminds us that all roles in the Group are either serving customers
directly or supporting those colleagues who are. This purpose continues to
unite the Group as it has grown into new sectors and added new complementary
brands in recent years.
In May 2024, the Group launched its new goal, Mission 365, which was to
increase sales to £365m in the medium term, while achieving an adjusted
profit before tax margin of 8-10% at a Group level. We also committed to
every brand within the Group structure having the potential to deliver an 8%+
adjusted profit before tax margin. This would imply a minimum profit level
for the Group of £30 million, a three fold increase when compared to profits
achieved in the last financial year.
Five key areas of growth were identified to deliver Mission 365. The
indicative sales uplifts we expect to deliver from the five growth areas,
together with a modest level of market recovery and business as usual price
growth, are as follows:
Revenue £m
Group adjusted sales in 2024 248
Market and business-as-usual pricing 10 - 20
Expand into new coverings categories 25 - 30
Modernise the trade digital experience 15 - 20
Business-to-business (B2B) sales focus 35 - 40
Pro Tiler expansion 20 - 25
Tile Warehouse maturity 10 - 15
Mission 365 (medium term) 365
As part of this new goal, we redefined the scope of the Group's operations and
the market in which we operate. The Group's core focus has traditionally
been tiles and closely associated products, a market valued at c.£1.2 billion
in 2023. However, the Group identified an opportunity to sell a variety of
additional hard floor and wall coverings, and the inclusion of these new
product categories, such as luxury vinyl tiles, outdoor tiles, shower panels,
splashbacks and more, expanded the Group's addressable market to c. £2.1
billion. In summary, the Group is now focused on the wider market of all
hard wall and floor surface coverings, a significantly larger market, which
presents multiple opportunities for growth.
We expect the Group to deliver the following financial outcomes in the medium
term:
- Sales of £365 million, £117 million higher than adjusted sales in FY24,
noting that c.40% of this target has now been delivered by year end FY25.
- Gross margins between 51% and 52%, depending on changes in business mix
- Adjusted profit before tax margin of 8%+
- Substantial improvements in lease adjusted return on capital employed, given
only relatively modest changes to the store network and some investments in
supply chain and systems.
The most significant strategic progress towards this goal was made in August
2024 through the acquisition of the brand and certain assets of CTD, on which
more detail is given below. As a result of this acquisition we amended our
ambition for B2B sales from £15 - £25 million to £35 - £40 million.
Rather than increase the goal, we consider that the CTD acquisition will
accelerate the delivery. It is noted that following the increase of our B2B
ambition the lower end of the table above now adds to £365 million,
suggesting upside potential if we deliver against all of our strategic plans,
but we are too early on our journey to commit to that at this stage. Updates
on the other areas of the strategy are given in the following sections of this
report.
CTD acquisition
On 19 August 2024, the Group acquired the brand and certain assets from CTD
Tiles Limited, which had fallen into administration, including all
intellectual property, CTD's Architectural & Designer (A&D) and
Housebuilder business, selected stock and a licence to occupy 30 CTD stores,
for consideration of £9 million. CTD had previously operated 86 stores, and
the majority of the other stores closed soon afterwards.
The Competition and Markets Authority ('CMA') opened a Phase 1 investigation
into this transaction in October 2024. This required the assets acquired to
be 'held separate' to the Groups other operations during the period of
review. This investigation ultimately led to a requirement to dispose of
four stores where the CMA identified local competition concerns. From April
2025 the majority of the restrictions were lifted and the Group has been
focused on the implementation of Group IT systems, delivering a performance
improvement programme, and disposing of the four stores identified by the
CMA. This includes:
- The Topps Tiles core IT system (Microsoft Dynamics) was implemented into the
warehouse and stores in August 2025. This helps to reduce operating costs
and reliance on 3rd party vendors, and also provides commonality across our
retail stores which is helpful for inter-branch colleague transfers. This
will also greatly assist the implementation of a new Group wide central system
over the next two years (Microsoft Dynamics 365 Business Central).
- Performance improvement programme - the trading loss over the year has been
£1.7 million. The business has made material progress over the second half
of the financial year and the work to improve performance continues. It is
our expectation that the business will generate a full year profit in the FY26
financial year.
- Disposal of four stores - one of the stores identified by the CMA was disposed
of in FY25, two more have been concluded in the first part of FY26 and the
remaining store disposal is expected to be completed in December 2025. This
will bring to a conclusion any involvement by the CMA in the Group's
activities.
- As a result of the disposal process and also normal commercial property
considerations, the Group will trade from 22 CTD stores and is preparing plans
to grow the store base in FY26.
The strategic rationale for the acquisition of CTD remains and the operations
are complementary to our existing trade strategy, allowing us to access a
larger contractor and national housebuilder customer base.
Please see the financial review for a breakdown of the trading and non-trading
performance of CTD within FY25.
Strategic progress
1) Expand into new coverings categories
As described above, the Group has redefined its addressable market to include
all hard wall or floor surface coverings, including products such as luxury
vinyl tiles, shower panels, outdoor tiles, laminate and engineered wood,
splashbacks, XXL porcelain, and acoustic panels. A 5-10% market share of
these categories would amount to over £50 million of incremental sales
compared to 2024 levels and we believe there exists at least a £25 - £30
million sales opportunity in these areas as part of Mission 365.
During FY25 good initial progress has been made but we also consider that
there is significantly more to do. The outdoor tile range has been extended,
wall panels have been rolled out to all stores (both acoustic and shower), and
porcelain splashbacks have been launched. In addition, to help increase
profitability, both luxury vinyl tiles and acoustic panels are now
direct-sourced. Digital marketing has been improved and colleague training
has taken place. Overall, £11.8 million of sales have been made across
these categories in Topps Tiles, up 12% year on year, with gross profit up
20%.
2) Modernise the trade digital experience
Trade customers can offer repeat custom and act as brand ambassadors on behalf
of Topps Group to other traders and to homeowners. They may use the Group's
brands frequently, perhaps multiple times a week, compared to homeowners who
usually only come into the market once every few years, and as a result are
rewarded with advantaged pricing and enhanced support. As such, the Group
has had a strategy of increasing its trade mix over time. Following the
acquisition of CTD, approximately 75% of sales in Topps Group by value are to
trade customers, and trade mix within the Topps Tiles brand increased by 5.3
percentage points year on year to 68.1% of sales. This compares to c. 50% of
sales ten years ago.
To drive further growth in trade revenues, Topps Group has been actively
improving its trade offer, in particular through Topps Tiles' digital
channels. Over the last year, the Topps Tiles team has made strong progress,
including:
- The launch of a completely new trade website, benefits include visible
pricing, a simplified trade registration process and the ability to create a
single basket regardless of where stock is located
- The launch of a new Customer Engagement Platform ('CEP'), allowing us to
communicate a more tailored offer to our trade customers
- Enhanced trade credit offering - allowing us to target larger contractor type
customers who require credit facilities. Trade Pay represents c.6% of trade
sales and has grown by c.40% YoY
- A refreshed and more holistic trade offer through our relaunched 'Trade Club'
- Commencement of development for a new trade app which will become the default
platform for trade to access the Topps Tiles offer, this is scheduled to
launch in second half of FY26
We are pleased with progress made in improving the Topps Tiles trader digital
experience - online trade traffic has increased by 66%, online trade sales
have increased by 70% and total sales to trade customers have increased by
13.3% (all when compared to the previous financial year). The number of
active traders at the end of the period increased 12% year on year to 152,000.
We see a significant further opportunity to grow the number of registered
traders and improve share of wallet through further progress in the areas
listed above in the coming years, with a total opportunity of £15 - £20
million when compared to 2024 levels.
3) Business-to-business sales focus
The acquisition of CTD has significantly enhanced our B2B offering within the
Group. Four brands now cater for trade and professional customers, all of
which have complementary, differentiated market positions:
- Topps Tiles offers the convenience of 297 stores nationwide and digital
platforms, focusing primarily on general builders and solus tile fitters.
- Pro Tiler Tools supplies fitters and smaller contractors buying consumable
items and technical tools through its modern digital channels, as well as a
direct selling team able to provide personal support to larger contractors.
- CTD will become a trade-only business, offering a physical store network and
supplying larger contractors and national housebuilders, with a good depth of
consumables stock held in each location, an emphasis on professional tiling
brands and a more flexible delivery capability.
- Parkside is highly relevant for projects where the architect or designer is
the key influencer behind the coverings purchasing decision, and where bespoke
or technical products are required. Parkside have partnered with Material
Source, a key destination for interior designers, architects and property
professionals, with studios currently in Glasgow, Manchester and London, as
they forge closer links with the design community.
The CTD acquisition has added approximately £30 million of B2B sales to the
Group and, following the execution of the plan above, will contribute
materially above the £15 million to £25 million range originally envisaged
for B2B sales growth in the Mission 365 plan, hence this part of the plan has
now been revised to £35 million to £40 million.
The Parkside business has generated a profit for the first time in FY25
(following achieving breakeven in FY24) and has generated just over a 5% net
margin on £8.5 million of sales. This makes Parkside the second most
profitable part of the business on a net margin basis this year, behind Pro
Tiler Tools.
In addition to the above, the Group has agreed a partnership with Wren
Kitchens to supply a tile offer. A curated range of tiles is now available in
all Wren showrooms around the country, under the Topps Tiles brand. The
model provides for the product to be ordered by Wren customers and fulfilled
by Topps Tiles. Having established proof of concept in FY25 and extended
this to all stores, the focus for FY26 is on delivering continued sales
growth.
4) Pro Tiler Tools
Pro Tiler Tools continues to deliver strong financial results and take market
share. In the year, the business achieved annual sales of £35 million,
growing by 22% year on year. Pro Tiler sales have now grown three-fold when
compared to the level prior to our acquisition in 2022. Sales over the first
half started to become constrained as the business outgrew its existing 50,000
sq ft warehouse facility and in December 2024 we relocated to a new facility
with approximately three times the space. This has been key in feeding the
further expansion of the business and also allowed us to further enhance the
customer offer by introducing a 9pm cut off for next day delivery - an
industry leading proposition. As a result of this additional capacity and
customer service, sales accelerated over the second half and despite the
additional supply chain costs profitability has also improved as we have grown
our scale - and over the latter part of the year is now operating very close
to our profitability target of 8% net margin. As the business continues to
grow and as a result of being part of the Group, new opportunities around
ranging and sourcing are also being developed. This includes direct supply
relationships with leading European tool manufacturers, which have
historically been controlled by UK distributors. As part of Mission 365, we
attributed £50 million of sales to Pro Tiler, we are very confident in the
delivery of this and expect the business to grow beyond this level over the
coming years.
5) Tile Warehouse
Tile Warehouse, our online pure play brand focused on selling coverings
products to value-conscious homeowners, was established in summer 2022 and
continues to grow well. Sales in the year were £3 million, which have
increased 82.4% year on year. This was largely driven by growth in traffic
of 20% and growth in conversion of 33%. As a result of this success, Tile
Warehouse has been independently recognised as the fastest growing digital
tile specialist in the UK (source - Salience Search Marketing Report,
September 2025). As the scale of the business grows, trading losses for the
year have reduced by 27% to £0.5 million. Tile Warehouse represents an
exciting opportunity for the Group but we also recognise the need to move the
business into profit and this will only be achieved by further growth in
sales. The business is now trading at weekly levels where we believe this
should be possible and we expect the second half of FY26 to achieve this for
the whole period. Tile Warehouse represents £10m - £15m of our Mission 365
goal and we remain confident that this is achievable over time.
Strategic Enablers
Operational & Digital Excellence
Underpinning our successful business are strong operational disciplines.
This area of the strategy covers support functions such as supply chain,
property, IT, finance, legal, central operations, marketing & digital.
The Group has delivered a significant change to its supply chain
infrastructure this year through the addition of a new 140,000 sq ft warehouse
in Northamptonshire. The lease on this new facility was signed in October
2024 and became operationally active in late December with the relocation of
Pro Tiler Tools. This new facility serves two key operational needs of the
Group - as described above, Pro Tiler Tools was operationally constrained in
its existing 50,000 sq ft facility and needed more space to grow, and, CTD was
required to exit their existing warehouse facility in Kings Norton. This new
facility now handles the logistical requirements of both businesses and
includes capacity for future growth. The capital fit out cost of the new
warehouse in the year was £2.8 million and the annual property costs are
approximately £1.8 million, split between Pro Tiler Tools and CTD. For Pro
Tiler Tools this is an increase of approximately £0.4 million when compared
to its previous facility (which will be paid for by the sales growth the
additional capacity will help to drive) and for CTD the costs are broadly
similar to their previous facility.
This year, the Group began its two-year programme of core systems upgrades.
Working with our chosen implementation partner, the business will implement
Microsoft Dynamics 365 Business Central in 2026 across central functions, the
Topps Tiles and CTD store networks, and Parkside. The cost of implementation
is estimated at £1.2 million of additional operating costs, spread over FY25
and FY26 and the increased licencing costs at the conclusion of the project
are expected to be offset through operating efficiencies. In addition, new
IT hardware for stores will be purchased to unlock operating efficiencies and
further sales opportunities, at a capital cost of approximately £1.0
million. Pro Tiler Tools and Tile Warehouse run on different systems and we
will revisit their systems architecture following the core systems upgrade.
The Group has extensive digital capabilities and this extends across pure play
brands such as Pro Tiler Tools and Tile Warehouse to omni-channel operations
such as Topps Tiles. Overall, Group digital sales increased by 2.6
percentage points to 21.1% (FY24: 18.5%). When CTD sales are included this
ratio will reduce to approximately 19.0% but thereafter we expect this to
continue to increase as we pursue our growth strategy and our goal of Mission
365.
Topp People, Topp Service
The provision of world class service has remained a key competitive advantage
of the Group over its history and is a characteristic of all its brands. For
a homeowner customer, buying tiles is a very infrequent activity and so being
supported by teams which have the time to explain the variety of products on
offer, their suitability for different jobs and the other products needed to
complete the job is essential. For trade customers, technical knowledge and
a trusted point of contact is key for maintaining strong relationships.
'Topp Service' can only be delivered by 'Topp People' and the Group is
delighted to continue to deliver industry leading levels of customer
service. In Topps Tiles, overall satisfaction in the year was 91.1%, a
modest decrease when compared to last year's excellent result of 92.1%. That
means that 91.1% of customers who fill in a survey rated the business as five
stars. This year we have also targeted a significant increase in Google
store reviews. As a result of this focus, we have recorded 48,800 Google
reviews in the period, compared to 12,700 reviews in the same period last
year. The average score cumulatively for the business is 4.97 stars,
improving local search results and giving potential customers, many of whom
would not have been in the market for tiles for a number of years, the
confidence to shop with us.
In Pro Tiler Tools, online reviews have an average score of 4.85 / 5 and in
Tile Warehouse the average score is 4.5 / 5, showing the level of customer
service offered across the Group.
Overall colleague turnover rose by 4.8% to 31%. The principal drivers of
this have been CTD post-acquisition changes, HGV driver turnover (created by
increased market demand) and performance management in Topps Tiles. The
increase in turnover has resulted in a reduction in retention to 79.5% (FY24:
81.0%)
Despite the increase in colleague turnover the retention ratio indicates a
good level of stability across the Group, with average service exceeding seven
years. This year, we celebrated unprecedented milestones including 40+ years
of service, with one colleague reaching 50 years.
Our One Topps diversity, equity & inclusion strategy continues to
evolve. For the coming financial year we will be focused on strengthening
our listening approach, enhancing recruitment support (e.g. through the use of
blind CVs), and improving our demographic tracking.
During the year we have created a Tiling Apprenticeship partnership, which is
currently active in Birmingham and Leeds, and during 2026 we plan to further
extend to Cardiff and Edinburgh.
Charity fundraising remains central to our engagement strategy. This year, we
surpassed £675,000 raised for Alzheimer's Society, progressing toward our £1
million pledge over five years.
Environmental Leadership
Environmental Leadership is a core pillar of the Group's strategy, where focus
centres on carbon reduction and circularity. The Group remains committed to
achieving carbon neutral status by 2030 across Scope 1 and 2 emissions
alongside a new near-term science-based aligned target. The Scope 1 and 2
emissions in FY25 were 5,333 tonnes (FY24: 5,105 tonnes), a slight increase
compared to last year due to an increase in gas consumption across our stores.
Investment in the use of Hydrotreated Vegetable Oil (HVO) as a replacement for
diesel is paramount to be able to remove all our fleet emissions and this will
be progressively introduced over the medium term. At one of the Group's
central supply chain facilities, light fittings have been upgraded to energy
efficient LED systems reducing the total fittings by 54%, reducing energy
consumption by 200 tonnes per annum and enhancing the overall lighting
level. In addition, a further 15 new tractor units for the primary fleet
have been leased providing a 2.8% YoY fuel efficiency. At the store level,
we have replaced a further 18 inefficient gas heaters with modern systems,
with further upgrades planned.
This year, Pro Tiler Tools have begun embedding the key principles of
Environmental Leadership throughout their business, which includes reporting
their carbon emissions for the first time. In line with best practice, our
Baseline Year has been recalculated to reflect this inclusion, raising the
total emissions for 2023 to 207,854 tonnes, an increase of 18,617 tonnes.
Improvements to data collection were included as historic updates in the
recalculations. For 2025, Scope 3 emissions remain the largest category at
205,893 tonnes, dominated by the purchased goods (primarily tiles, adhesive
and metal trims) and the usage of purchased products (primarily underfloor
heating). Emissions from the use of sold products can only be reduced with the
government's commitment to 100% renewable energy from the grid by 2035.
Engagement with our suppliers has commenced as part of our plans to understand
their decarbonisation targets to support our Scope 3 emissions reductions.
Please see the Sustainability and TCFD reports in the Annual Report for more
information on this subject.
Reduction of waste is a key focus within the Circularity area of our
environmental strategy, and a heavy focus has been on the tile waste reduction
target. The Group this year has seen a decrease in tile waste by 16.6%,
improving on 9% in FY24 and 12% in FY23. This brings the total reduction in
tile waste to 719 tonnes over the past three years. Stores continue to improve
waste segregation driving down the cost of disposal, 2025 has seen 59 tonnes
of baled cardboard and 52 tonnes of mixed plastic recycled, alongside the
active pallet reuse and recycle programme which sees 96,700 pallets returned
from the store network.
Summary
2025 has been a successful year for the business with most of our key adjusted
performance measures improving year on year, including a 46% increase in
adjusted profit before tax. This has been a year of significant strategic
progress for the Group and to be able to report our fourth record year of
sales over the last five years is a particular highlight. We are now
approximately 40% of the way towards our revenue goal of Mission 365 and our
growth strategy is delivering well.
Key Performance Indicators ("KPIs")
As set out in our most recent Annual Report, the Board monitors a number of
financial and non-financial KPIs when reviewing the implementation of the
Group's strategy. Our performance in the 52 weeks to 27 September 2025 is
set out in the table below, together with the prior year performance data.
The source of data and calculation methods are consistent with those described
in the 2025 Annual Report.
52 weeks to 52 weeks to YoY
27 September 28 September
2025 2024
Financial KPIs
Group adjusted revenue growth/(decline) year on year* 6.8% (5.4)% n/a
Topps Tiles like-for-like sales growth/(decline) year on year* 5.3% (9.1)% n/a
Group adjusted gross margin %* 53.8% 53.3% +0.5 ppts
Adjusted profit before tax* £9.2 million £6.3 million +46.0%
Adjusted earnings per share* 3.43 pence 2.39 pence +43.5%
Adjusted net cash* £7.4 million £8.7 million £(1.3) million
Inventory days 105 118 (13) days
Non-financial KPIs
Square metres of tiles sold in Topps Tiles (thousand) 4,134 4,222 (2.1)%
Topps Tiles customer overall satisfaction score 91.1% 92.1% (1.0) ppts
Scope 1 & 2 net carbon emissions (tonnes per annum)** 5,333 5,105 +4.5%
Group colleague retention 79.5% 81.0% (1.5) ppts
* as defined in the Financial Review
** FY24 has been restated to include Pro Tiler Tools (originally stated as
4,866 tonnes)
FINANCIAL REVIEW
FY25 covers the 52 weeks to 27 September 2025. The previous period (FY24)
covers the 52 weeks to 28 September 2024. After a challenging year in 2024,
in FY25 the Group has delivered growth in adjusted sales, gross margins and
profits. The Group has also maintained its financial disciplines with good
cash generation and robust balance sheet.
Acquisition and performance of CTD
On 19 August 2024, the Group acquired the brand and certain assets from CTD
Tiles Limited (in administration) including the right to occupy 30 stores,
selected stock, intellectual property and branding, for consideration of £9.0
million. At 28 September 2024, the fair values assigned to all of the acquired
assets were determined on a provisional basis in accordance with IFRS 3
'Business Combinations'. The finalisation of the fair values, together with an
assessment of goodwill and intangible assets acquired, was completed within
the 12 month fair value period, as permitted by IFRS 3, and these have been
reported in the full year results as at 27 September 2025.
In the 2024 full year results, CTD's performance was excluded from adjusted
profit metrics, including its trading performance, acquisition costs, and the
initial costs of the CMA investigation. CTD's results have also been
excluded from adjusted profit metrics in FY25 as the CMA investigation has had
the impact of removing the business from the Group's direct influence for a
material part of the year and impacted the pace of integration into the
Group. In FY26 CTD's performance will be included in the Group's adjusted
performance metrics which will include approximately £11 million of
operational costs and is expected to be additive to the Group's adjusted
profit before tax.
The total loss before tax of the business was as follows:
£m 52 weeks to 27 September 2025
CMA advisory costs (2.0)
One-off items & non-recurring costs (3.2)
One off costs (5.2)
Trading (1.7)
CTD loss before tax (6.9)
The CMA process has resulted in advisory costs of £2.0 million, primarily
consisting of legal and econometric fees.
One-off items and non-recurring costs of £3.2 million were incurred,
including costs for historic IT systems (which have now been exited),
administration fees, relocation and moving costs for the distribution centre,
legal costs for assigning leases on stores acquired, and accelerated
depreciation of assets on exit of stores.
The trading activities of the business resulted in a loss for the year of
£1.7 million. The business has made material progress over the second half
of the financial year and the work to improve performance continues. It is
our expectation that the business will generate a full year profit in the FY26
financial year.
During the year, the management team restocked the business following the
administration, resulting in an increase in inventories of £3.7 million.
The business also focused on cash collection, including amounts falling due in
the previous trading period, and payables increased as a result of
reinitiating normal supplier payment terms, resulting in a cash inflow from
other working capital movements of £3.6 million. Capital expenditure of
£0.9 million was incurred, largely as a result of the relocation of CTD's
main warehouse Kings Norton to the Prologis Park Pineham. As a result, the
cash outflow in the year, including CMA advisory costs, was £6.3 million,
broken down as follows:
£m 52 weeks to 27 September 2025
Cash generated by operations before working capital (3.5)
Increase in inventories & other working capital movements (0.1)
CMA advisory fees (1.8)
Operational cash flows and CMA advisory fees (5.4)
Capital expenditure (0.9)
Total cash flow (6.3)
Consolidated Statement of Profit or Loss
Topps Group returned to revenue growth in 2025, with 6.8% adjusted revenue
growth across the business, including an improving trend across the year.
Sales in the Topps Tiles brand were 3.9% higher year on year, driven by strong
conversion, leading to transaction growth, with average transaction value
('ATV') staying relatively flat year-on-year. Like-for-like sales in Topps
Tiles were 5.3% higher year-on-year.
Sales in Online Pure Play remained very strong, up 25.6% to £38.3 million.
Within Online Pure Play, Pro Tiler Tools continued to deliver excellent
growth, up 22.2% year-on-year to £35.2 million and Tile Warehouse sales
increased by 82.4% year-on-year to £3.1 million. Parkside sales increased
by 11.8% to £8.5 million. Revenue by business area was as follows:
Revenue by brand (£m) FY25 FY24 YoY
Topps Tiles 218.6 210.4 +3.9%
Parkside 8.5 7.6 +11.8%
Online Pure Play* 38.3 30.5 +25.6%
Adjusted revenue 265.4 248.5 +6.8%
CTD** 30.4 3.3 +821.2%
Group revenue 295.8 251.8 +17.5%
*Online Pure Play includes Pro Tiler Tools and its associated brands, which
were acquired in March 2022, and Tile Warehouse, which was launched in May
2022.
** CTD was acquired on 19 August 2024. Please see the section above for
further information.
Adjusted gross profit was £10.2 million higher year-on-year at £142.7
million (FY24: £132.5 million). The adjusted gross margin was 0.5
percentage points higher year-on-year at 53.8%. The Group's adjusted gross
margin over the second half increased 0.7 percentage points to 54.1% when
compared to the first half. There are a number of moving parts in gross
margin - dilutive factors include the growth of lower gross margin parts of
the business (including online pureplay), and an increasing trade mix in Topps
Tiles. These dilutive factors have been offset by improved buying, reduced
discounting and price increases over the year plus gains from improved stock
management and foreign currency exchange upsides. Gross margins in the Topps
Tiles brand saw a material increase over the year to 58.9% (FY24: 57.6%).
Group gross margin, including CTD, was 1.1 percentage points lower
year-on-year at 52.2% (FY24: 53.3%), with CTD having a 1.6 percentage point
dilutionary effect.
Adjusted operating costs were £127.2 million, up £5.7 million from £121.5
million last year, explained by the following key items:
£ million
FY24 adjusted operating expenses 121.5
Inflationary costs 4.6
Increased performance related pay 2.5
Investment in marketing and systems 0.8
Online Pure Play cost investment 2.1
Cost saving from fewer stores (1.0)
Other net savings (3.3)
FY25 adjusted operating expenses 127.2
Cost inflation was spread across a number of lines, including wage inflation
(with the second half impacted by the National Living Wage increase of 6.7%
and the increase in the rate and reduction in the threshold of employers' NICs
from April 2025), property, and IT costs. Increased performance related pay of
£2.5 million relates to higher variable payments to colleagues across the
Group as a result of the financial performance compared to targets. Investment
in digital marketing and costs relating to a core systems and CEP upgrade
programme resulted in an additional cost of £0.8 million. The continued
strong sales growth in Pro Tiler Tools has resulted in further expansion of
the cost base - particularly in digital marketing and in relation to their new
distribution centre which became operational from January 2025. There were
savings of £1.0 million from fewer trading Topps Tiles stores year-on-year,
and other net savings of £3.3 million includes reduced property cost accruals
and provisions, lower depreciation, and lower utility costs. Adjusted
operating profit was up 40.9% to £15.5 million (FY24: £11.0 million).
Adjusted net finance costs were £6.3 million in FY25 (FY24: £4.7 million),
as a result of lower cash balances throughout the year, utilisation of the
revolving credit facility in the period, and higher IFRS 16 interest charges
due to rising interest rates. Statutory interest costs were £7.0 million
(FY24: £4.8 million), broken down as follows:
FY25 FY24 YoY
Net interest payable on lease liabilities 5.4 4.7 0.7
Bank interest payable and amortisation of banking facility fees 1.1 0.5 0.6
Interest receivable on credit balances (0.2) (0.5) 0.3
Adjusted net finance costs 6.3 4.7 1.6
Interest unwind on Pro Tiler Tools earn out provision - 0.1 (0.1)
IFRS 16 interest payable on non-operational warehousing 0.7 - 0.7
Net finance costs 7.0 4.8 2.2
Adjusted profit before tax for the period was £9.2 million (FY24: £6.3
million) and, after including the adjusting items described in the next
section, the statutory profit before tax was £8.3 million (FY24: loss before
tax of £16.2 million).
Adjusting items
The Group's management uses adjusted performance measures, to plan for,
control and assess the performance of the Group. Adjusted profit before tax
differs from the statutory profit before tax as it excludes the effect of
one-off or fluctuating items, allowing stakeholders to understand results
across years in a more consistent manner.
We have excluded property costs in relation to the store closure programme,
which ended with stores closed in 2022. Only one closed store was left in
the estate as at the year end date.
In line with prior years, we treat any impairment charges of right-of-use
assets or plant, property and equipment, derecognition of lease liabilities
where we have exited a store, and one-off gains and losses through sub-lets as
adjusting items. In 2025, reversals of previous impairment charges have been
recognised and these have also been treated as adjusting items to be
consistent with the impairment charges. Impairments imply that assets will not
incur a depreciation charge moving forward in statutory profit, however, the
Group's adjusted profit before tax measure will carry a notional depreciation
charge, as if the assets had not been impaired, meaning that adjusted profit
before tax will continue to be comparable year on year, and is more reflective
of the actual lease payments made by the Group. None of these items has any
cash impact, in FY24 or in future periods.
In the period, the Group relocated the warehouse operations of both Pro Tiler
Tools and CTD into a distribution centre at the Prologis Park Pineham. The
costs associated with the warehouse before operational use, costs associated
with the warehouse being exited, and the relocation of the Pro Tiler operation
to the new facility, were £1.1 million.
In August 2024, the CTD brand and certain assets were acquired from
administration and the financial impact of this business, including its
trading performance, one-off items and non-recurring costs, and the costs of
advisory fees relating to the CMA investigation have been excluded from
adjusted profit. The CMA's Initial Enforcement Order had the effect of
keeping CTD at arm's length of the company's management and prohibiting
further integration which would have improved the business's financial
performance.
In the period between H2 FY22 and H1 FY24 we excluded the cost relating to the
40% purchase of shares of Pro Tiler Limited, which, under IFRS 3, is treated
as a remuneration expense rather than a cost relating to the acquisition of
the relevant shares. Restructuring costs and other one-off costs have also
been excluded.
In January 2025, the Group announced the intention of Chief Executive, Rob
Parker, to retire from the business at the end of 2025. As a result of
this there have been several management transition costs - including
recruitment fees and the two costs of two Chief Executives to allow for an
orderly handover of responsibilities. Our new Chief Executive, Alex Jensen,
joined in mid September and therefore we expect to see a continuation of this
into FY26. In addition, our Chief Financial Officer, Stephen Hopson, left
the business on 3 September and we recruited an Interim CFO to provide
appropriate cover to this business while we recruitment a permanent
candidate. There was an approximately six week handover period which
resulted in additional costs. We have also been engaged in a process to
recruit a permanent CFO and various costs associated with this search have
been incurred. The Audit Committee consider that these costs conform with
our agreed definition of adjusting items.
An analysis of movements from adjusted profit before tax to statutory
profit/(loss) before tax is given below:
FY25 FY24
£m £m
Adjusted profit before tax 9.2 6.3
Property
- Vacant property and closure costs (0.5) (0.3)
- Store impairment, reversal of impairment and lease exit gains and losses 2.5 (18.8)
- Removal of notional depreciation on impaired assets 5.7 -
- Non-operational warehouse costs (1.1) -
6.6 (19.1)
Business development
CTD
- CMA advisory costs (2.0) (0.1)
- One off items & non-recurring costs (3.2) (0.2)
- Trading (1.7) 0.1
- Pro Tiler Limited share purchase expense - (3.2)
- Restructuring and other one-off costs (0.3) -
(7.2) (3.4)
Management succession (0.3) -
Statutory profit / (loss) before tax 8.3 (16.2)
Tax and earnings per share
The tax expense was £2.3 million (FY24: credit of £3.4 million). On an
adjusted basis, the effective rate of corporation tax for the period was 26.6%
(FY24: 22.3%). The effective rate of corporation tax for the period on a
statutory basis was 27.5% (FY24: 21.0%). The adjusted and statutory rates of
tax are slightly higher than the than the headline rate of corporation tax in
the UK of 25% as a result of certain disallowable expenses such as share based
payment expenses and the net impact of depreciation compared to capital
allowances.
Adjusted earnings per share were 3.43 pence, up 43.5% when compared to 2.39
pence in FY24. This growth was driven by the growth in adjusted profit
before tax.
Basic earnings per share were 3.05 pence (FY24: loss per share of 6.63 pence).
Dividend & Dividend Policy
In 2022, the Board outlined a new Capital Allocation and Dividend Policy. In
the policy, the Board indicated that it intended to achieve a payout ratio of
67% of the adjusted earnings per share (EPS) generated in the year and that
this would be sustainable over time. The policy was designed to have some
flexibility and, in particular, the Board indicated that it did not intend to
reduce the dividend year on year due to short term performance or
macroeconomic issues, even if that meant increasing the payout ratio in some
years. A limit on this flexibility was applied, at 100% of adjusted EPS in
any given year.
As a result of the above policy in the previous financial year when earnings
declined this flexibility was applied and 100% of the adjusted EPS was paid to
shareholders (2.4 pence per share). Adjusted EPS in FY25 was 3.43 pence per
share and the Board has decided to continue to apply some discretion to the
payout ratio and propose a final dividend of 2.1 pence per share, resulting in
a full year dividend payment of 2.9 pence per share, a 20.8% increase on the
prior year. This represents an approximately 85% payout ratio which the
Board considers an appropriate balance for the year.
The shares will trade ex-dividend on 18 December 2025 and, subject to approval
from shareholders at the Annual General Meeting in January 2026, the final
dividend will be paid on 30 January 2026.
Consolidated Statement of Financial Position and Consolidated Cash Flow
Statement
Capital Expenditure and Store Estate
Capital expenditure in the period amounted to £5.5 million (FY24: £4.5
million), an increase of £1.0 million year on year. £2.8 million relates
to the establishment of the Group's new distribution centre at the Prologis
Park Pineham, supporting the Pro Tiler Tools and CTD operations. In the
period, the Group opened one new Topps Tiles store at Balham and a relocation
at Clacton, with the balance of capital expenditure being spent on store
improvements and IT projects.
Within the Topps Tiles brand, there was one new store opening, one relocation,
and five store closures in the year. At the period end there were 297 Topps
Tiles trading stores (FY24: 301 stores). We retain significant flexibility
within our store estate, with an average unexpired lease term of 2.5 years
(2024: 2.8 years). At the period end, there was one closed store (FY24: two
closed stores) which is expected to be exited in the next financial year.
Inventory
Inventory at the period end was £40.6 million (FY24: £38.1 million),
representing 105 inventory days (FY24: 118 inventory days), however prior year
inventory days were distorted by the short period of CTD trading included in
the results. Inventory days excluding CTD were 101 (FY24: 110 inventory
days). The value movement in stock year-on-year can be explained by an
increase in Pro Tiler of £0.7 million (to £4.2 million), a decrease in Topps
Tiles of £1.6 million (to £29.7 million) and an increase in CTD of £3.7
million (to £6.7 million).
Consolidated Cash Flow Statement
The Group's adjusted net cash position decreased in the period by £1.3
million from £8.7 million of adjusted net cash at the start of the financial
year to £7.4 million of adjusted net cash at the year end. Adjusted net
cash is defined as cash and cash equivalents, less bank loans, before
unamortised issue costs, and excludes lease liabilities under IFRS 16. The
table below analyses the Group's adjusted net cash flow:
FY25 FY24
£m £m
Cash generated by operations, including interest and capital elements of 15.0 13.6
leases, before WC movements and CTD/CMA
Changes in working capital excluding CTD/CMA (0.7) 6.4
CTD operational cash flows and CMA advisory fees (5.4) (1.5)
Net bank interest (0.7) (0.1)
Tax (0.3) (2.3)
Capital expenditure (5.5) (4.5)
Other 0.2 (0.3)
Free cash flow 2.6 11.3
Dividends paid to owners of Topps Tiles plc (3.9) (7.1)
Change in adjusted net cash before acquisitions (1.3) 4.2
Acquisition of CTD - (9.0)
Acquisition of remaining 40% of shares in Pro Tiler Limited including - (9.9)
dividends paid to non-controlling interest
Change in adjusted net cash (1.3) (14.7)
Adjusted net cash at start of period 8.7 23.4
Adjusted net cash at end of period 7.4 8.7
Cash generated by operations, after leases but before working capital
movements and excluding CTD was £15.0 million, £1.4 million higher than the
previous year. Working capital excluding CTD showed an outflow of £0.7
million, including the impact of a higher trade debtor balance, partially
offset by lower stock (excluding CTD) year-on-year, as well as higher trade
creditors and performance-based pay accruals. Working capital in the prior
year included the impact of the timing of the 2024 year-end which increased
the closing trade payables balance by c.£9 million due to payroll, VAT and
supplier payment runs falling due on 30 September 2024, just after the prior
year-end date. CTD cash flows and capital expenditure for the group are
detailed in the sections above. Net interest paid was a £0.7 million cash
outflow when compared to a £0.1 million outflow last year due to higher
interest charges from the utilisation of the revolving credit facility and as
well as lower cash balances throughout the year. Cash tax payments were
lower as a result of the statutory loss made last year and dividends were
lower, which included the cash outflow of the FY24 final dividend. The Group
conducted two transactions in the prior year: the purchase of the remainder of
the shares in Pro Tiler Limited and the acquisition of certain assets from CTD
Tiles Limited.
Return on Capital Employed
The Group's return on capital employed, including the impact of leases,
increased from 12.2% in FY24 to 16.9% in FY25, due to a 40.9% year on year
increase in adjusted operating profit to £15.5 million (FY24: £11.0
million). Closing capital employed was 20.7% higher than opening capital
employed as a result of higher lease liabilities. The Group defines return on
capital employed as the annual adjusted operating profit divided by the
average capital employed (net assets plus net debt, including lease
liabilities). At the balance sheet date, lease adjusted capital employed
consisted of £7.7 million of net assets, £99.8 million of lease liabilities,
offset by £7.4 million of net cash, giving total capital employed of £100.1
million (FY24: £82.9 million).
Banking Facilities
The Group maintains a robust balance sheet, providing resilience and allowing
investment in growth opportunities. A £30.0 million revolving credit
facility is in place which is committed to October 2027 (FY24: £30.0 million
facility, committed to October 2027). At the full year, £11.0 million of
this facility was drawn (FY24: £15.0 million drawn). Based on net cash
excluding lease liabilities of £7.4 million at the year end, the Group had
£37.4 million of headroom to its banking facilities at the period end (FY24:
£38.7 million).
Current Trading and Outlook
Trading over the initial part of the new financial year has moderated due to
weaker consumer confidence, but sales remain in growth. Group sales (excl
CTD) in the first nine weeks are up 3.3% year-on-year with Topps Tiles
life-for-like sales up 2.0%. CTD stores are delivering consistent LFL growth
and we are confident in generating a profit in FY26.
Despite a more challenging consumer backdrop the Group remains confident in
the outlook and is committed to delivering its goal of Mission 365 over the
medium term.
Risks and Uncertainties
The Board continues to monitor the key risks and uncertainties of the Group.
Since the FY25 half year results announcement, the Board has added three
principal risks and removed two principal risks of the Group. A risk on
Quality & Ethical Sourcing has been added following the acquisition of
CTD, which introduced new product suppliers and countries that are not known
to the Group. A risk covering the delivery of a new ERP system has been
recognised, given the inherent uncertainties associated with new system
implementations. A new risk has also been created to recognise the potential
impact that Artificial Intelligence could have on customer behaviour and the
operations of the Group. Two principal risks have been - one covering
inflationary cost pressures, given that non-wage inflation pressures have
reduced in FY25 and a second risk on critical asset failure which is not
deemed to have materially changed, but has been removed because other risks
are considered to be of greater importance. Information on the nature and
scale of all of the Group's strategic risks is provided in the risk and
uncertainties section of the FY25 annual report.
Responsibility Statement
We confirm that to the best of our knowledge:
(a) the condensed set of financial statements has been prepared in accordance
with IAS 34 'Interim Financial Reporting' as contained in UK-adopted IFRS;
(b) the interim management report includes a fair review of the information
required by DTR 4.2.7R (indication of important events during the first six
months and description of principal risks and uncertainties for the remaining
six months of the year); and
(c) the interim management report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related parties' transactions and
changes therein).
Rob Parker Alex Jensen
Chief Executive Officer Chief Executive Officer Designate
2 December 2025
Unaudited Consolidated Statement of Profit or Loss
For the 52 weeks ended 27 SEPTEMBER 2025
Notes 52 weeks 52 weeks
ended ended
27 September 28 September
2025 2024
£'000 £'000
Group revenue 2 295,754 251,756
Cost of sales (141,428) (117,434)
Gross profit 154,326 134,322
Distribution and selling costs (98,809) (93,426)
Other operating expenses (6,232) (5,918)
Administrative costs (27,215) (19,492)
Marketing and online costs (9,459) (7,944)
Property related impairment reversals/(charges) 11, 12 2,425 (19,360)
Other income 12 263 401
Group operating profit/(loss) 15,299 (11,417)
Finance income 5 258 665
Finance costs 5 (7,295) (5,480)
Profit/(loss) before taxation 3 8,262 (16,232)
Taxation 6 (2,274) 3,412
Profit/(loss) for the period 5,988 (12,820)
Profit/(loss) is attributable to:
Owners of Topps Tiles Plc 5,988 (13,033)
Non-controlling interests - 213
5,988 (12,820)
All results relate to continuing operations of the Group.
52 weeks 52 weeks
ended ended
27 September 28 September
2025 2024
Earnings per ordinary share: Notes £'000 £'000
- Basic 8 3.05p (6.63p)
- Diluted 8 3.01p (6.63p)
Unaudited Consolidated Statement of Comprehensive Income
For the 52 weeks ended 27 SEPTEMBER 2025
52 weeks 52 weeks
ended ended
27 September 2025 28 September
£'000 2024
£'000
Profit/(loss) for the period 5,988 (12,820)
Total comprehensive income/(loss) for the period is attributable to:
Owners of Topps Tiles Plc 5,988 (13,033)
Non-controlling interests - 213
5,988 (12,820)
Unaudited Consolidated Statement of Financial Position
as at 27 SEPTEMBER 2025
Notes 2025 2024
£'000 (restated)
£'000
Non-current assets
Goodwill 9 5,496 6,037
Intangible assets 10 5,744 6,492
Property, plant and equipment 11 16,776 17,328
Deferred tax assets 1,339 3,878
Right-of-use assets 12 77,947 55,325
Other financial assets 12 1,302 1,653
108,604 90,713
Current assets
Inventories 40,613 38,051
Other financial assets 12 298 210
Trade and other receivables 18,047 13,350
Current tax debtor 1,588 1,015
Derivative financial instruments 138 -
Cash and cash equivalents 13 18,434 23,682
Assets classified as held for sale 16 171 -
79,289 76,308
Total assets 187,893 167,021
Current liabilities
Trade and other payables (64,351) (57,463)
Lease liabilities 12 (16,782) (14,584)
Derivative financial instruments - (378)
Provisions (247) (335)
(81,380) (72,760)
Net current (liabilities)/assets (2,091) 3,548
Non-current liabilities
Lease liabilities 12 (83,010) (71,381)
Provisions (4,776) (2,299)
Bank loans 14 (11,000) (14,996)
Total liabilities (180,166) (161,436)
Net assets 7,727 5,585
Equity
Share capital 6,556 6,556
Share premium 2,636 2,636
Own shares (28) (7)
Merger reserve (399) (399)
Share-based payment reserve 6,563 6,349
Capital redemption reserve 20,359 20,359
Accumulated losses (27,960) (29,909)
Capital and reserves attributable to owners of Topps Tiles Plc 7,727 5,585
Non-controlling interests - -
Total equity 7,727 5,585
Unaudited Consolidated Statement of Changes in Equity
For the 52 weeks ended 27 SEPTEMBER 2025
Share Share Own Merger Share-based Capital Accumulated losses Total
Capital premium shares reserve payment redemption £'000 Non-controlling interest equity
£'000 £'000 £'000 £'000 reserve reserve £'000 £'000
£'000 £'000
Balance at 30 September 2023 6,556 2,636 (112) (399) 6,035 20,359 (11,869) 3,182 26,388
(Loss)/profit and total comprehensive loss for the period - - - - - - (13,033) 213 (12,820)
Dividends - - - - - - (7,077) (1,111) (8,188)
Transfer on acquisition of non-controlling interest - - - - - - 2,284 (2,284) -
Own shares purchased in the period - - (105) - - - - - (105)
Own shares disposed of on issue in the period - - 210 - - - (210) - -
Credit to equity for equity-settled share-based payments - - - - 314 - - - 314
Deferred tax on share-based payment transactions - - - - - - (4) - (4)
Balance at 28 September 2024 6,556 2,636 (7) (399) 6,349 20,359 (29,909) - 5,585
Profit and total comprehensive income for the period - - - - - - 5,988 - 5,988
Dividends - - - - - - (3,929) - (3,929)
Own shares purchased in the period - - (127) - - - - - (127)
Own shares disposed of on issue in the period - - 106 - - - (106) - -
Credit to equity for equity-settled share-based payments - - - - 214 - - - 214
Deferred tax on share-based payment transactions - - - - - - (4) - (4)
Balance at 27 September 2025 6,556 2,636 (28) (399) 6,563 20,359 (27,960) - 7,727
Unaudited Consolidated Cash Flow Statement
For the 52 weeks ended 27 SEPTEMBER 2025
Notes 52 weeks 52 weeks
ended ended
27 September 28 September
2025 2024
£'000 £'000
Cash flow from operating activities
Profit/(Loss) for the period 5,988 (12,820)
Taxation 6 2,274 (3,412)
Finance costs 5 7,295 5,480
Finance income 5 (258) (665)
Group operating Profit/(Loss) 15,299 (11,417)
Adjustments for:
Depreciation of property, plant and equipment 11 4,034 4,667
Depreciation of right-of-use assets 12 12,761 17,630
Amortisation of intangible assets 10 913 683
Loss on disposal of property, plant and equipment 86 160
(Gain)/ loss on sublease (32) 20
Loss on disposal of goodwill 478 -
Impairment of property, plant and equipment 11 759 2,290
Impairment of right-of-use assets 12 3,986 17,094
Impairment reversal of right-of-use assets 12 (7,170) -
Gain on lease disposal (5) (526)
Share option charge 214 314
Increase in earn out liability and other provisions 775 3,394
Non-cash (gain)/loss on derivative contracts (516) 452
Cash generated from operations before movements in working capital, tax and 31,582 34,761
interest
Increase in trade and other receivables (4,784) (8,066)
(Increase)/decrease in inventories (2,562) 670
Increase in payables 6,735 12,344
Cash generated from operations before tax and interest 30,971 39,709
Interest paid on borrowings (959) (666)
Interest received on operational cash balances 249 610
Interest element of lease liabilities paid 12 (6,125) (4,731)
Settlement of earn out liability and other provisions (150) (8,838)
Taxation paid (312) (2,314)
Net cash generated from operating activities 23,674 23,770
Investing activities
Interest received on sublease assets 12 44 55
Receipt of capital element of sublease assets 279 467
Proceeds from capital expenditure incentives 160 -
Purchase of property, plant and equipment 11 (4,848) (4,193)
Direct costs relating to right-of-use assets (649) (188)
Purchase of intangibles 10 (165) (89)
Purchase of business 15 - (9,000)
Proceeds on disposal of property, plant and equipment 500 -
Net cash used in investment activities (4,679) (12,948)
Financing activities
Payment of capital element of lease liabilities (16,009) (17,059)
Dividends paid 7 (3,929) (8,188)
Financing arrangement fees (178) (152)
Purchase of own shares (127) (105)
Proceeds from borrowings 14 21,000 23,500
Repayment of borrowings 14 (25,000) (8,504)
Net cash used in financing activities (24,243) (10,508)
Net (decrease)/increase in cash and cash equivalents (5,248) 314
Cash and cash equivalents at beginning of period 23,682 23,368
Cash and cash equivalents at end of period 13 18,434 23,682
Notes to the Unaudited Consolidated Financial Statements
For the 52 weeks ended 27 SEPTEMBER 2025
1 GENERAL INFORMATION
Topps Tiles Plc is a public limited company, limited by shares, incorporated
and domiciled in the United Kingdom and registered in England under the
Companies Act 2006.
The consolidated financial statements are unaudited and do not constitute
statutory accounts of the Company within the meaning of Section 434(3) of the
companies Act 2006. Statutory accounts for the year ended 28 September 2024
have been delivered to the Registrar of Companies. The audit report for those
accounts was unqualified, did not draw attention to any matters by way of
emphasis and did not contain a statement under 498(2) or (3) of the Companies
Act 2006.
Statutory accounts for the 52-week period ended 27 September 2025 will be
delivered to the Registrar of Companies following the Company's Annual General
Meeting.
These unaudited financial statements are presented in pounds sterling because
that is the currency of the primary economic environment in which the Group
operates.
ADOPTION OF NEW AND REVISED STANDARDS
In the current period there were no new or revised standards and
interpretations adopted that have a material impact on the financial
statements. The Group has not early adopted any other standard, interpretation
or amendment that has been issued but is not yet effective.
STANDARDS ADOPTED IN CURRENT PERIOD
The following new and revised standards and interpretations have been adopted
in the current year. Their adoption has not had any significant impact on the
amounts reported in these financial statements.
- Amendments to IAS 1: Classification of Liabilities as Current and
Non-Current;
- Amendments to IAS 1: Non-current liabilities with covenants
- Amendments to IAS7 and IFRS 7: Supplier finance arrangements; and
- Amendments to IFRS 16: Lease liability in a sale and leaseback.
2 GROUP REVENUE
An analysis of Group revenue is as follows:
52 weeks 52 weeks
ended ended
27 September 28 September
2025 2024
£'000 £'000
Revenue from the sale of goods 295,754 251,756
Total revenue 295,754 251,756
The Group trades in four related sectors which are Topps Tiles, Parkside, CTD
and Online Pure Play. The Board receives monthly financial information at this
level and uses this information to monitor performance, allocate resources and
make operational decisions. These sectors are considered to meet the
aggregation criteria as set out in IFRS 8 since the nature of the products,
customer base and distribution methods are consistent with each other and the
have similar economic characteristics. The Group sells tiles and tile
associated products in each of these sectors, predominantly to UK-based
retail, trade and commercial customers and offers a range of delivery and
collection options for orders.
Revenue can be split by the following geographical regions:
52 weeks 52 weeks
ended ended
27 September 28 September
2025 2024
£'000 £'000
UK 295,486 251,511
EU 167 176
Rest of World 101 69
Total 295,754 251,756
Revenue can be split into the following business areas:
52 weeks 52 weeks
ended ended
27 September 28 September
2025 2024
£'000 £'000
Topps Tiles 218,582 210,367
Parkside 8,532 7,592
CTD 30,353 3,303
Online Pure Play 38,287 30,494
Total 295,754 251,756
The Group's revenue is driven by the consolidation of individual small value
transactions and as a result, Group revenue is not reliant on a major customer
or group of customers.
3 PROFIT/(LOSS) BEFORE TAXATION
Profit/(Loss) before taxation for the period has been arrived at after
charging/(crediting):
Notes 52 weeks 52 weeks
ended ended
27 September 28 September
2025 2024
£'000 £'000
Depreciation of property, plant and equipment 11 4,034 4,667
Depreciation of right-of-use assets 12 12,761 17,630
Operating lease costs accounted for per IFRS 16 para 6 - low value and short 6,373 2,917
term rentals
Gain on lease disposal (37) (506)
Impairment charge of property, plant and equipment 11 759 2,290
(Reversal of impairment charge)/impairment charge of right-of-use assets 12 (3,184) 17,094
Loss on disposal of property, plant and equipment and intangibles 564 160
Amortisation of intangibles 10 913 683
Staff costs 4 71,543 60,173
Exchange gains/(losses) recognised in profit or loss (51) 746
Cost of inventories recognised as an expense 139,564 113,996
Write-down of inventories to net realisable value 1,915 2,693
In the reporting of financial information the Group uses certain measures that
are not required under IFRS, the generally accepted accounting principles
('GAAP') under which the Group reports.
Adjusted profit before tax excludes the effect of one-off or fluctuating
items, allowing stakeholders to understand results across years in a more
consistent manner. The Group's management includes an adjusted profit before
tax as a key performance indicator within the Strategic Report as one of the
measures by which investors can assess the performance of the Group.
The reconciliation of Adjusted Profit Before Tax to Statutory Profit/(Loss)
Before Tax is as follows:
52 weeks 52 weeks
ended ended
27 September 28 September
2025 2024
£'000 £'000
Adjusted Profit Before Tax 9,205 6,319
Property
Vacant property and closure costs (483) (333)
Store impairments, reversal of impairments and lease exit gains and losses 2,462 (18,854)
Removal of notional depreciation on impaired assets 5,742 -
Non-operational warehouse costs (1,122) -
Business development
CTD trading, one-off items and non-recurring costs, transaction costs and CMA (6,918) (198)
investigation costs
Pro Tiler Tools share purchase expense - (3,166)
Restructuring and other one-off costs (278) -
Management succession
Management succession (346) -
Statutory Profit/(Loss) Before Tax 8,262 (16,232)
Property related costs include impairment charges or impairment reversals of
assets, derecognition of lease liabilities where we have exited a store,
one-off gains and losses through sub-lets, costs relating to the store closure
programme which ended in 2022, notional depreciation on impaired assets and
costs associated with the distribution centre at the Prologis Park Pineham
before operational use, costs associated with the warehouse being exited, and
the relocation of the Pro Tiler operation to the new facility.
Business development costs include the financial impact of CTD, including
trading performance, one-off and non-recurring costs, acquisition and
integration costs, and the initial costs of the CMA investigation. In this
period, the performance of CTD has been excluded from adjusted metrics due to
the ongoing disruption caused by the CMA investigation. In the prior year,
business development costs include the charges relating to the acquisition of
Pro Tiler, including the cost associated with the purchase of the remaining
40% of shares which completed in March 2024. Restructuring costs relate to
Board-approved decisions such as business closures or major organisational
changes.
Analysis of the auditor's remuneration is provided below:
52 weeks 52 weeks
ended ended
27 September 28 September
2025 2024
£'000 £'000
Fees payable to the Company's auditor with respect to the Company's annual 516 486
accounts
Fees payable to the Company's auditor and their associates for other audit
services to the Group:
Audit of the Company's subsidiaries pursuant to legislation - -
Total audit fees 516 486
Total non-audit fees - -
Total fees payable to the Company's auditors 516 486
Additional fees of £80,000 were incurred as part of the finalisation of the
audit in 2024.
4 STAFF COSTS
The average monthly number of persons employed by the Group in the UK during
the accounting period (including Executive Directors) was:
52 weeks 52 weeks
ended ended
27 September 28 September
2025 2024
Number employed Number employed
Selling and distribution 1,417 1,385
Administration 469 381
1,886 1,766
The average monthly number of persons (full-time equivalents) employed by the
Group in the UK during the accounting period (including Executive Directors)
was:
52 weeks 52 weeks
ended ended
27 September 28 September
2025 2024
Number employed Number employed
Selling and distribution 1,315 1,297
Administration 463 377
1,778 1,674
2025 2024
£'000 £'000
Their aggregate remuneration comprised:
Wages and salaries (including LTIP) 63,806 54,191
Social security costs 6,307 4,736
Other pension costs 1,430 1,246
71,543 60,173
Employee profit sharing of £6.6 million (2024: £4.1 million) is included in
the above and comprises sales commission and bonuses.
The total charge for share based payments recognised during the year was £0.2
million (2024: £0.3 million)
5 FINANCE INCOME AND FINANCE COSTS
52 weeks 52 weeks
ended ended
27 September 28 September
2025 2024
£'000 £'000
Finance income
Bank interest receivable 214 610
Interest income from finance lease receivables 44 55
258 665
Finance costs
Interest on bank loans and overdrafts (1,170) (749)
Interest payable on lease liabilities (6,125) (4,731)
(7,295) (5,480)
No finance costs have been capitalised in the period, or the prior period.
6 TAXATION
52 weeks 52 weeks
ended ended
27 September 28 September
2025 2024
£'000 £'000
Current tax - charge for the period 360 265
Current tax - adjustment in respect of prior periods (621) 720
Deferred tax - charge/(credit) for the period (note 15) 2,008 (3,201)
Deferred tax - adjustment in respect of prior periods (note 15) 527 (1,196)
Total tax charge/(credit) 2,274 (3,412)
The charge/(credit) for the period can be reconciled to the profit/(loss) per
the Consolidated Statement of Profit or Loss as follows:
52 weeks 52 weeks
ended ended
27 September 28 September
2025 2024
£'000 £'000
Continuing operations:
Profit/(loss) before taxation 8,262 (16,232)
Tax at the UK corporation tax rate of 25.0% (2024: 25.0%) 2,066 (4,052)
Expenses that are not deductible in determining taxable profit 225 896
Fixed asset differences (non-deductible expenses) 141 220
Non-taxable gains on property (64) -
Adjustment in respect of prior periods (621) 720
Adjustments to tax charge in respect of prior periods - deferred tax 527 (1,196)
Tax charge/(credit) for the period 2,274 (3,412)
In the period, the Group has recognised a corporation tax credit directly to
equity of £nil (2024: £nil) and a deferred tax charge to equity of £4,000
(2024: £4,000) in relation to the Group's share option schemes.
The Group continue to fully provide within current tax liabilities and other
creditors for a historic tax claim relating to EU loss relief in relation to
the closed Dutch business of £1,113,000 (2024: £1,071,000).
The applicable UK corporation tax rate was 25%.
7 DIVIDENDS
Amounts recognised as distributions to equity holders in the period:
52 weeks 52 weeks
ended ended
27 September 28 September
2025 2024
£'000 £'000
Final dividend for the period ended 28 September 2024 of £0.012 (2023: 2,357 4,717
£0.024) per share
Interim dividend for the period ended 27 September 2025 of £0.008 (2024: 1,572 2,360
£0.012) per share
Total dividend paid in the period 3,929 7,077
Proposed final dividend for the period ended 27 September 2025 of £0.021 4,126 2,360
(2024: £0.012) per share
The proposed final dividend for the period ended 27 September 2025 is subject
to approval by shareholders at the Annual General Meeting and has not been
included as a liability in these financial statements.
8 EARNINGS PER SHARE
The calculation of earnings per share is based on the earnings for the
financial period attributable to equity shareholders and the weighted average
number of ordinary shares.
52 weeks 52 weeks
ended ended
27 September 28 September
2025 2024
Weighted average number of issued shares for basic earnings per share 196,681,818 196,681,818
Weighted average impact of treasury shares for basic earnings per share (134,599) (64,344)
Total weighted average number of shares for basic earnings per share 196,547,219 196,617,474
Weighted average number of shares under option 2,668,897 2,116,731
For diluted earnings per share 199,216,116 198,734,205
52 weeks ended 52 weeks ended
27 September 28 September
2025 2024
£'000 £'000
Profit/(loss) after tax for the period attributable to the parent 5,988 (13,033)
Adjusting items 762 17,730
Adjusted profit after tax for the period attributable to the parent 6,750 4,697
Earnings per ordinary share - basic 3.05p (6.63p)
Earnings per ordinary share - diluted 3.01p (6.63p)
Earnings per ordinary share - adjusted* 3.43p 2.39p
* Adjusted earnings per share is an adjusted performance measure used by the
Group's management to plan for, control and assess the performance of the
Group.
Diluted earnings per share for the prior period is not adjusted for the impact
of the potential future conversion of preferred equity due to this instrument
having an anti-dilutive effect, whereby the positive impact of adding back the
associated financial costs to earnings outweighs the dilutive impact of
conversion/exercise. Diluted adjusted earnings per share does take into
account the impact of this instrument as shown in the table above setting out
the weighted average number of shares. Due to the loss incurred in the prior
year, in calculating the diluted loss per share, the share options, warrants
and preferred equity are considered to be non-dilutive.
Adjusted earnings per share were calculated after adjusting for the post-tax
impact of the following items: vacant property and closure costs of £412,000
(2024: £273,000), removal of notional depreciation on impaired assets of
£4,306,000 (2024: £nil), store impairments and lease exit gains and losses
of £1,705,000 gain (2024: £14,140,000 loss), Pro Tiler Tools share purchase
expense of £nil (2024: £3,166,000), CTD trading losses of £1,152,000 (2024:
£50,000), CTD one off costs £2,380,000 (2024: £nil), restructuring and
other one-off costs of £209,000 (2024: £38,000), CMA advisory costs of
£1,487,000 (2024: £63,000), management succession costs of £256,000 (2024:
£nil) and non-operational warehouse costs of £877,000 (2024: £nil).
9 GOODWILL
Notes £'000
Cost
At 28 September 2024 11,714
IFRS remeasurement 15 (2,328)
At 28 September 2024 (restated) 9,386
Disposals (284)
Assets classified as held for sale 16 (257)
At 27 September 2025 8,845
Accumulated impairment losses
At 28 September 2024 3,349
At 27 September 2025 3,349
Carrying amount
At 27 September 2025 5,496
At 28 September 2024 (restated) 6,037
On 19 August 2024, the Group acquired certain trade and assets from CTD Tiles
Limited. This included property, tangible assets and inventory. The excess of
consideration paid against the fair value of assets and liabilities acquired
was recognised as goodwill. At 28 September 2024, the Group recognised the
fair values of assets acquired on a provisional basis in accordance with IFRS
3. At 27 September 2025, the fair values of assets acquired have been
finalised within the 12 month period as permitted by IFRS 3. The goodwill and
related assets are being allocated as a group of cash-generating units.
Further information in relation to the acquired assets is described within
Note 15. The remaining carrying value of goodwill relates to the acquisition
of Pro Tiler Limited.
The Pro Tiler carrying amount is £2.1m and the CTD carrying amount is £3.4m.
The accumulated impairment losses relate to the goodwill recognised on the
acquisition of Parkside Ceramics Limited in 2017 and Strata Tiles Limited in
2019, that were written down to £nil in a prior year.
10 INTANGIBLE ASSETS
Brand Customer relationships £'000 Total
£'000 Software £'000
£000
Cost
At 30 September 2023 6,405 1,042 1,384 8,831
Additions - - 89 89
Disposals - - (156) (156)
At 28 September 2024 6,405 1,042 1,317 8,764
IFRS remeasurement 807 1,524 - 2,331
At 28 September 2024 (restated) 7,212 2,566 1,317 11,095
Additions - - 165 165
At 27 September 2025 7,212 2,566 1,482 11,260
Accumulated amortisation
At 30 September 2023 1,898 1,042 1,136 4,076
Amortisation charge for the period 532 - 151 683
Elimination on disposal - - (156) (156)
At 28 September 2024 2,430 1,042 1,131 4,603
Amortisation charge for the period 600 163 150 913
At 27 September 2025 3,030 1,205 1,281 5,516
Carrying amount
At 27 September 2025 4,182 1,361 201 5,744
At 28 September 2024 (restated) 4,782 1,524 186 6,492
The carrying value of the brand assets were recognised on the acquisition of
Pro Tiler Limited in 2022 and the acquisition of CTD in 2024. The carrying
value of the Customer Relationships were recognised on the acquisition of CTD.
Both the CTD Brand and Customer Relationships have been included in the
current results following the finalisation of the fair values in the 12 month
fair value period following the date of acquisition, as permitted by IFRS 3,
and as detailed further in Note 15. Other brand and customer relationships
assets relating to the acquisition of Parkside Ceramics Limited in 2017 and
Strata Tiles Limited in 2019 were written down to £nil in a prior year.
Software is amortised on a straight-line basis over its estimated useful life
of four years.
The Pro Tiler brand is amortised over a period of ten years on a straight-line
basis and the CTD brand is amortised over a period of fourteen years on a
straight-line basis. The remaining useful life of the Pro Tiler brand is seven
years and the CTD brand is thirteen years.
The Customer Relationships are amortised over a period of eleven years on a
straight-line basis. The remaining useful life is ten years.
Amortisation is included within other operating expenses within the
Consolidated Statement of Profit or Loss.
11 PROPERTY, PLANT AND EQUIPMENT
Freehold Short Fixtures Motor Total
land and buildings Leasehold And Vehicles Plant and £'000
£'000 Improvements fittings £'000 Machinery
£'000 £'000 £'000
Cost
At 30 September 2023 1,304 1,264 85,324 74 313 88,279
Additions - 42 4,101 50 - 4,193
Additions from business combinations 390 475 81 - - 946
Disposals - (81) (2,440) - (44) (2,565)
At 28 September 2024 1,694 1,700 87,066 124 269 90,853
Additions - 467 4,335 46 - 4,848
Reclassification of Asset Category(1) (390) 390 - - - -
Disposals (505) (232) (2,648) (15) (145) (3,545)
Assets classified as held for sale - (20) (8) - - (28)
At 27 September 2025 799 2,305 88,745 155 124 92,128
Accumulated depreciation
At 30 September 2023 341 972 67,575 35 50 68,973
Charge for the period 32 77 4,505 15 38 4,667
Impairment charge - - 2,290 - - 2,290
Eliminated on disposals - (81) (2,287) - (37) (2,405)
At 28 September 2024 373 968 72,083 50 51 73,525
Charge for the period 23 435 3,489 59 28 4,034
Reclassification of Asset Category (5) 5 - - - -
Impairment charge - - 759 - - 759
Eliminated on disposals (257) (99) (2,577) (12) (14) (2,959)
Assets classified as held for sale - (6) (1) - - (7)
At 27 September 2025 134 1,303 73,753 97 65 75,352
Carrying amount
At 27 September 2025 665 1,002 14,992 58 59 16,776
At 28 September 2024 1,321 732 14,983 74 218 17,328
(1) The CTD assets have been reclassified following further assessment as part
of the finalisation of the fair value of the assets acquired, as detailed in
Note 15.
Cumulative finance costs capitalised in the cost of tangible fixed assets
amount to £nil (2024: £nil). Details of the impairment recognised are
included in note 12.
All assets classified as property, plant and equipment are UK based.
12 LEASES
As a lessee
Right-of-use assets included in the Consolidated Statement of Financial
Position were as follows:
Land and buildings Total
£'000
Equipment £'000
£'000
At 30 September 2023 77,982 2,939 80,921
Additions 10,947 1,624 12,571
Disposals (3,419) (24) (3,443)
Depreciation (16,006) (1,624) (17,630)
Impairment (17,094) - (17,094)
At 28 September 2024 52,410 2,915 55,325
Additions 29,485 3,035 32,520
Disposals (238) (83) (321)
Depreciation (11,150) (1,611) (12,761)
Impairment (3,986) - (3,986)
Reversal of impairment 7,170 - 7,170
At 27 September 2025 73,691 4,256 77,947
During the period, the Group has continued to review the performance of its
store portfolio and the Group has provided for the net book value of
right-of-use assets in relation to 88 stores (2024: 159 stores) and property,
plant and equipment in relation to 49 stores (2024: 63 stores) that are
impaired. The Group has reversed impairments where there is any indication
that previously impaired assets may no longer be impaired, with reversals of
impairment charges of right-of-use assets in relation to 93 stores (2024: no
stores). The carrying value of store-based assets is £89.2 million (2024:
£68.1 million). Due to forecast sales performance being inadequate to ensure
that future expected cashflows support the carrying values of their assets,
impairments have been recognised to the right-of-use assets of £4.0 million
(2024: £17.1 million) and to the property, plant and equipment of £0.8
million (2024: £2.3 million). Where forecast sales performance has exceeded
expectations which indicates that economic performance of the assets is better
than expected, impairment reversals have been recognised to the right-of-use
assets of £7.2 million (2024: £nil). There are other assets that are not
linked to the store portfolio.
Lease liabilities included in the Consolidated Statement of Financial Position
were as follows:
Land and buildings Total
£'000
Equipment £'000
£'000
At 30 September 2023 (91,407) (3,095) (94,502)
Additions (10,729) (1,624) (12,353)
Disposals 3,807 24 3,831
Interest (4,492) (239) (4,731)
Repayment of lease liabilities 19,889 1,901 21,790
At 28 September 2024 (82,932) (3,033) (85,965)
Additions (27,369) (2,971) (30,340)
Disposals 541 83 624
Interest (5,815) (310) (6,125)
Repayment of lease liabilities 20,320 1,694 22,014
At 27 September 2025 (95,255) (4,537) (99,792)
The maturity analysis of the lease liabilities is as follows:
2025 2024
£'000 £'000
Current (16,782) (14,584)
Non-current (83,010) (71,381)
(99,792) (85,965)
The remaining contractual maturities of the lease liabilities, which are gross
and undiscounted, are as follows:
2025 2024
£'000 £'000
Less than one year 26,397 21,890
One to five years 60,713 54,737
More than five years 50,866 34,524
Total undiscounted lease liability 137,976 111,151
The following amounts have been recognised in the Consolidated Statement of
Profit or Loss:
Land and buildings Total
2025
Equipment 2025
£'000
2025 £'000
£'000
Depreciation of right-of-use assets 11,150 1,611 12,761
Net reversal of impairment of right-of-use assets (3,184) - (3,184)
Interest expense 5,815 310 6,125
Expenses relating to short-term leases - 99 99
Holdover lease expense 5,734 540 6,274
Land and buildings Total
2024
Equipment 2024
£'000
2024 £'000
£'000
Depreciation of right-of-use assets 16,006 1,624 17,630
Impairment of right-of-use assets 17,094 - 17,094
Interest expense 4,492 239 4,731
Expenses relating to short-term leases - 27 27
Holdover lease expense 2,736 154 2,890
The total cash outflow for leases held on the balance sheet during the
financial period was £22.0 million (2024: £21.8 million). Cash outflow for
short-term leases was £6.4 million (2024: £2.9 million).
As a lessor
Lease income from lease contracts in which the Group acts as a lessor is as
below:
2025 2024
£'000 £'000
Lease income (from operating leases) 263 401
Finance income (from finance leases) 44 55
The Group leases out a small number of properties, some of which are
classified as operating leases, as they do not transfer substantially all of
the risks and rewards incidental to the ownership of the assets.
In order to manage the risk associated with any rights retained in the
underlying leased assets, the Group ensures that appropriate due diligence is
undertaken in advance of formalising a lease arrangement with a lessee.
The carrying value of lease receivables is considered to be materially
reflective of their fair value.
Some of the properties that the Group leases out are classified as finance
leases. These are shown as other financial assets on the Consolidated
Statement of Financial Position.
The following table sets out a maturity analysis of lease receivables, showing
the undiscounted finance lease payments to be received after the reporting
date:
2025 2024
£'000 £'000
Less than one year 338 317
One to five years 1,138 1,323
More than five years 245 452
Total undiscounted lease payments receivable 1,721 2,092
Less: unearned finance income (120) (226)
Less: expected credit loss provision (1) (3)
Present value of minimum lease payments receivable 1,600 1,863
Current 298 210
Non-current 1,302 1,653
1,600 1,863
Impairment
At the end of the financial year the carrying value of assets, including
right-of-use lease assets, was assessed against their recoverable amount
determined by reference to their value-in-use. Assets and expected cashflows
were assessed at the lowest identifiable level of Cash Generating Unit ("CGU")
where the expected cash inflows of each CGU were expected to be independent of
those incurred by other CGUs. Individual retail stores are considered to be
separate CGUs, which includes income from online orders that are
click-and-collect. Pro Tiler Limited is treated as a separate CGU and the CTD
goodwill and intangible assets acquired are treated as a group of CGUs as
described in Note 10 and no impairment has been recognised.
Sustained macro-economic challenges principally within the first half of the
year offset with overall Group results trading upwards in the second half
which has resulted in the Group determining that a review was required across
the entire store estate to identify potential impairments or reversals of
previous impairment charges. As a consequence, all stores have been assessed,
leading to an impairment charge to the value of right-of-use assets of
£3,986k, which includes £997k relating to newly acquired stores, and
reversals of previous impairment charges of £7,170k in the current year. The
impairment reviews include management's assessment of current economic
factors, such as movements in inflation, interest rates and the macro-economic
environment. For stores that have been opened less than two years prior to the
balance sheet date, a separate indicator assessment is performed whereby the
actual cash inflows are compared against investment appraisals. The newly
acquired stores predominantly relate to CTD. The impairment assessment on
these stores is based on five year forecasted cash flows using net
contributions by store which are assumed to align with the core estate by year
three. Reversals of impairments are assessed based on trading performance in
the year in comparison to previous cash flow forecasts and a reversal will be
recognised if the economic performance of the store is better than expected
due to factors such as increased trading volumes. Impairments or reversals of
impairment charges are recognised if there are significant variances against
expected cash flow profiles.
The value-in-use calculations require the application of a number of
assumptions. The key assumptions used in the estimation of recoverable amounts
are set out below:
Assumption Description Sensitivity
Pre-tax discount rate This is calculated by reference to the weighted average cost of capital of the An increase in pre-tax discount rate of 100bps at year-end would lead to an
Group. At the year-end, the pre-tax discount rate applied to forecast additional £0.2 million (2024: £0.3 million) impairment in the year.
cashflows was 21.9% (2024: 29.1%). The discount rate applied in the current
period is lower than in the prior period due to changes in the underlying cash
flow profile and the resulting pre-tax discount rate calculation.
Cashflow forecasts Cashflows are derived from extrapolation of trading performance of identified For all store-based assets, a decrease in short-term/ budgeted growth rates in
CGUs. Management prepares growth rates applicable in the first five forecasted the first five forecasted years of 100bps at year-end would lead to an
years based on expected year-on-year growth in cash contributions for stores. additional £0.2 million (2024: £0.5 million) impairment in the year. For
The long-term growth rate is applied to future years where relevant, however recently acquired stores, a decrease in the short-term/ budgeted growth rate
given the period of assessment does not always exceed five years, this is not for the second forecasted year of 1000bps at year-end would lead to an
considered to be a key assumption. additional £0.2 million impairment in the year.
13 CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash held by the Group and short-term bank
deposits. The carrying amount of these assets approximates their fair value. A
breakdown of significant bank and cash balances by currency is as follows:
2025 2024
£'000 £'000
Sterling 18,230 22,814
US dollar 46 735
Euro 158 133
Total cash and cash equivalents 18,434 23,682
Cash and cash equivalents are in the scope of the expected credit loss model
under IFRS 9, however balances are held with recognised financial institutions
and therefore the expected impairment loss is considered to be minimal.
14 BANK LOANS
2025 2024
£'000 £'000
Revolving credit facility (all sterling) 11,000 14,996
2025 2024
£'000 £'000
The borrowings are repayable as follows:
Greater than one year 11,000 15,000
-
Less: total unamortised issue costs - (4)
11,000 14,996
The Directors consider that the carrying amount of the revolving credit
facility at 27 September 2025 and 28 September 2024 approximates to its fair
value since the amounts relate to floating rate debt.
The following is a reconciliation of changes in financial liabilities to
movement in cash from financing activities:
Lease Current borrowings Non-current borrowings Unamortised
liabilities £'000 £'000 issue costs
£'000 £'000
As at 30 September 2023 94,502 - - 100
Repayment of lease liabilities (21,790) - - -
Non-cash movement - Lease additions and disposals 8,522 - - -
Interest accrued on lease liabilities 4,731 - - -
Proceeds from revolving credit facility - - 23,500 -
Repayment of revolving credit facility - - (8,500) -
Unamortised issue costs - - (4) -
Issue costs incurred in the year - - - (100)
Amortisation of issue costs - - - 150
As at 28 September 2024 85,965 - 14,996 150
Repayment of lease liabilities (22,014) - - -
Non-cash movement - Lease additions and disposals 29,716 - - -
Interest accrued on lease liabilities 6,125 - - -
Proceeds from revolving credit facility - - 21,000 -
Repayment of revolving credit facility - - (25,000) -
Unamortised issue costs - - 4 -
Issue costs incurred in the year - - - (150)
Amortisation of issue costs - - - 79
As at 27 September 2025 99,792 - 11,000 79
At 27 September 2025, the Group had a revolving credit facility of £30.0
million, expiring in October 2027. As at the financial period end, £11.0
million of this was drawn (2024: £15.0 million), leaving £19.0 million of
undrawn committed banking facilities. The loan facility contains financial
covenants which are tested on a bi-annual basis. The Group did not breach any
covenants in the period.
15 ACQUISITIONS
On 19 August 2024, the Group acquired certain intellectual property, tangible
assets and inventory of CTD Tiles Limited (in administration), for cash
consideration of £9 million which is deemed to be the fair value of the
consideration. The business was acquired to add to the existing store
portfolio of the Group, in addition to the commercial business and to enter
into the housebuilder segment where the Group has limited or zero
representation.
Due to the proximity of the transaction to the prior period reporting date,
the purchase price allocation, including determination of the fair value of
intangible assets recognised on consolidation, had not been finalised when the
prior period financial statements were approved. As a result, the fair values
assigned to all of the acquired assets were determined on a provisional basis
in accordance with IFRS 3 'Business Combinations'.
The finalisation of the fair values, together with an assessment of goodwill
and intangible assets acquired, was completed within the 12 month fair value
period, as permitted by IFRS 3. The Group has adjusted the provisional amounts
that were recorded in the prior period financial statements as detailed in the
table below. As part of the purchase price allocation, the Group has
recognised separately identifiable acquired intangible assets in accordance
with IAS 38 and had their fair values assessed by an independent expert. The
fair value adjustments in respect of acquired intangible assets were
recognised in relation to the Brand and Customer Relationships, as detailed in
Note 10, calculated using the excess earnings approach.
The fair values of the net assets acquired and liabilities assumed at the
acquisition date were:
Notes Provisional Fair Value Final
Fair Value Adjustments Fair Value
£'000 £'000 £'000
Intangible Assets 10 - 2,331 2,331
Property, Plant and Equipment 11 946 - 946
Inventories 2,169 201 2,370
Provisions (379) 379 -
Deferred Tax on Intangible Assets - (583) (583)
Fair value of assets acquired 2,736 2,328 5,064
Total consideration 9,000 - 9,000
Goodwill 6,264 (2,328) 3,936
16 ASSETS CLASSIFIED AS HELD FOR SALE
During the period, the Group committed to a plan to sell certain CTD stores
following the investigation conducted by the Competition and Markets Authority
(CMA). The assets were classified as held for sale in accordance with IFRS 5.
The carrying amounts of the assets, being goodwill (Note 9) and property,
plant and equipment (Note 11), were remeasured to the lower of the carrying
amount and fair value less costs to sell, being the sales contract. The fair
value is categorised as level 2 within the fair value hierarchy. The assets
are available for immediate sale in their present condition and the sale is
considered highly probable within the next 12 months. Two of the three
remaining stores held for sale have subsequently been sold in the period after
the period end date and negotiations with the prospective buyer are ongoing in
relation to the final store, with this expected to complete imminently. These
are considered non-adjusting events in line with IAS10. The Group recognised
an impairment loss of £107k in relation to the assets held for sale, which is
included in other operating expenses in the Consolidated Statement of Profit
or Loss. No further depreciation has been charged following the
reclassification.
17 RELATED PARTY TRANSACTIONS
MS Galleon AG is a related party by virtue of their 29.8% shareholding
(58,753,435 ordinary shares) in the Group's issued share capital (2024: 29.8%
shareholding of 58,569,649 ordinary shares).
At 27 September 2025 MS Galleon AG is the owner of Cersanit, a supplier of
ceramic tiles with whom the Group made purchases of £652,236 during the year
which is 0.5% of cost of goods sold (2024: purchases of £786,732 during year
which is 0.7% of cost of goods sold).
An amount of £181,563 was outstanding with Cersanit at 27 September 2025
(2024: £145,008).
Transactions between the Company and its subsidiaries, which are related
parties, have been eliminated on consolidation and are not disclosed in this
note, in accordance with the exemption available under IAS 24.
18 POST BALANCE SHEET EVENTS
On 26 November 2025, the Group acquired the Fired Earth brand, associated IP,
website and a provisional £2.5 million of stock, for a total cash
consideration of £3 million. This will strengthen the Group's digital
presence and adds a premium brand to the homeowner and trade business.
Reconciliations between Alternative Performance Measures (APMs) and IFRS
For the 52 weeks ended 27 SEPTEMBER 2025
Unaudited
The Group's management uses adjusted performance measures to plan for, control
and assess the performance of the Group. Management exercises judgement in
determining the adjustments to apply to IFRS measurements in order to derive
suitable APMs.
APMs are used as management believe these measures provide additional useful
information on the trends, performance and position of the Group. These
measures are used for performance analysis by the Board. The APMs are not
defined by IFRS and therefore may not be directly comparable with other
companies' APMs. These measures are not intended to be a substitute for, or
superior to, IFRS measurements.
The following reconciliations have been included in this report to demonstrate
how these APMs can be reconciled back to statutory measures as defined by
IFRS.
TOPPS TILES LIKE-FOR-LIKE REVENUE AND YEAR ON YEAR MOVEMENT
2025 2024 2025
£m £m %
Topps Tiles like-for-like revenue and year on year movement (APM) 217.5 206.5 5.3%
Stores trading for less than 52 weeks 1.1 3.9 (1.4%)
Topps Tiles like-for-like revenue and year on year movement (statutory) 218.6 210.4 3.9%
ADJUSTED REVENUE
2025 2024
£m £m
Adjusted revenue (APM) 265.4 248.5
CTD 30.4 3.3
Revenue (statutory) 295.8 251.8
ADJUSTED GROSS MARGIN
2025 2024 2025 2024
£m £m % %
Adjusted gross margin (APM) 142.7 132.5 53.8% 53.3%
CTD 11.6 1.8 (1.6%) 0.1%
Gross margin (statutory) 154.3 134.3 52.2% 53.4%
ADJUSTED OPERATING PROFIT
2025 2024
£m £m
Adjusted operating profit (APM) 15.5 11.0
Property
Vacant property and closure costs (0.5) (0.3)
Store impairments, reversal of impairments and lease exit gains and losses 2.5 (18.8)
Removal of notional depreciation on impaired assets 5.7 -
Non-operational warehouse costs (0.8) -
Business development
CTD trading, one-off items and non-recurring costs, transaction costs and CMA (6.5) (0.2)
investigation costs
Pro Tiler Tools share purchase expense - (3.1)
Restructuring and other one-off costs (0.3) -
Management succession
Management succession (0.3) -
Operating profit/(loss) (statutory) 15.3 (11.4)
ADJUSTED PROFIT BEFORE TAX
2025 2024
£m £m
Adjusted profit before tax (APM) 9.2 6.3
Property
Vacant property and closure costs (0.5) (0.3)
Store impairments, reversal of impairments and lease exit gains and losses 2.5 (18.8)
Removal of notional depreciation on impaired assets 5.7 -
Non-operational warehouse costs (1.1) -
Business development
CTD trading, one-off items and non-recurring costs, transaction costs and CMA (6.9) (0.2)
investigation costs
Pro Tiler Tools share purchase expense - (3.2)
Restructuring and other one-off costs (0.3) -
Management succession
Management succession (0.3) -
Profit/(loss) before tax (statutory) 8.3 (16.2)
ADJUSTED EARNINGS PER SHARE
2025 2024
pence pence
Adjusted earnings per share (APM) 3.43 2.39
Property
Vacant property and closure costs (0.20) (0.14)
Store impairments, reversal of impairments and lease exit gains and losses 0.94 (7.19)
Removal of notional depreciation on impaired assets 2.18 -
Non-operational warehouse costs (0.43) -
Business development
CTD trading, one-off items and non-recurring costs, transaction costs and CMA (2.63) (0.08)
investigation costs
Pro Tiler Tools share purchase expense - (1.61)
Restructuring and other one-off costs (0.11) -
Management succession
Management succession (0.13) -
Earnings per share (statutory) 3.05 (6.63)
ADJUSTED NET CASH AT PERIOD-END
2025 2024
£m £m
Adjusted net cash at period-end (APM) 7.4 8.7
Lease liabilities (99.8) (86.0)
Net debt at period-end (statutory) (92.4) (77.3)
RETURN ON CAPITAL EMPLOYED
2025 2025 2024 2024
£m % £m %
Return on capital employed (APM) 16.9% 12.2%
Calculated as the annual operating profit divided by the average capital
employed, as follows:
Operating profit (adjusted) 15.5 11.0
Net assets 7.7 5.6
Cash and cash equivalents (18.4) (23.7)
Bank loans 11.0 15.0
Lease liabilities 99.8 86.0
Capital employed 100.1 82.9
Average capital employed (average of previous two financial periods) 91.5 90.2
Return on capital employed 16.9% 12.2%
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