Tapi losses widen as store rollout grinds to a halt

The flooring specialist said full-year losses for the financial year ending December 29, 2018, deepened by 41% to £15.3m.

The retailer, which is owned by Martin Harris – the son of Carpetright founder Lord Harris – reported an increase in turnover to £79m, and gross profit to £43.9, but also saw administrative expenses balloon to £59.3m, up from £44m the previous year.

The cost of sales also increased to £35m, up from £23.8m in 2017.

Since launching in 2015, cumulative losses at Tapi now exceed £35.5m.

In noted that the “period of rapid rollout” from 2018 – when it snapped up a number of former Carpetright stores after it underwent a CVA – “has slowed”, which it blamed for losses deepening.

Tapi currently trades from 129 stores, including 10 Homebase concessions, as well as 54 mobile showrooms.

The retailer said it would focus on its “hub and spoke model with main stores supported by concession space and mobile showrooms”.

It said it would look to have an “accelerated rollout of concession stores during 2020”, which would lead Tapi to profit, along with the “further development of alternative channels”.

Tapi noted that “the directors anticipated the accounting losses that would arise during the development stage and remain confident of moving into a profitable position over the next two years”.