UK's Topps Tiles profit nearly halves on weak home repair and maintenance demand (updated)
26/11/2024 07:23
(Adds sector context in paragraph 2, CEO comment in paragraph
3)
Nov 26 (Reuters) - British tile retailer Topps Tiles
TPT.L posted an about 50% slump in annual profit on Tuesday,
hurt by weak demand in home repair and maintenance sector, as
broader economic woes continue to weigh on customer spending.
The UK housing repair, maintenance and improvement (RMI)
segment has been under persistent pressure, hit by fears that
the Bank of England interest rate cut cycle might turn slower
due to rising inflation, fuelled by the Labour government's
ambitious new budget plans amid subdued new-builds demand.
Although the start of the new financial year has seen a
return to modest sales growth for the group, the forward macro
indicators for the company's market remain mixed, in particular
weaker consumer confidence, CEO Rob Parker said in a statement.
The UK's largest tile retailer, with more than 300 stores,
reported adjusted pre-tax profit of 6.3 million pounds ($7.9
million) for the year ended Sept. 28, compared with 12.5 million
pounds a year earlier.
In October, Britain's largest buildings materials supplier
Travis Perkins TPK.L lowered its annual profit outlook for the
second time in three months amid weakness in its merchanting
business.
($1 = 0.7972 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by
Rashmi Aich)
((abyjose.koilparambil@thomsonreuters.com))