Topps Tiles has posted a boom in sales for the full year and confirmed it has achieved its market share goal “two years ahead of schedule,” with cost inflation taking its toll.
For the 52 weeks to September 30, 2023, the flooring specialist reported profit before tax of £6.8m, down 37.6% year on year from £10.9m in 2022, which it attributed to “the impact of cost inflation” on its cost base.
Topps Tiles posted group revenue of £262.7m for the period, up 6.3% year on year, while gross profit also increased 2.8% from £135.4m to reach £139.2m.
The retailer also confirmed its previously anticipated “strong increase” in market share for the full year, up from 19.8% in 2022 to 22.1% this year.
Topps Tile’s pureplay business Pro Tiler was also said to have made “excellent progress”, with sales up 50% year on year.
The retailer said it remains “well-positioned” to continue its market gains due to its “market-leading brands, world-class customer service, specialist expertise, and ambitious growth strategy.”
Despite this, Topps Tiles said trading in the early weeks of the new financial year have shown the “well-documented challenges to discretionary consumer spending” – such as high interest rates, high inflation, falling house prices and lower housing transactions.
Chief executive Rob Parker said: “This has been a further year of strategic progress for the Group and we are delighted to have delivered a third consecutive year of record sales and to have achieved our ‘1 in 5’ market share goal two years ahead of schedule.
“While profitability for the year reflects the impact of inflation on our cost base, particularly during the early months of the period, these pressures began to abate in the second half, with the smaller store estate and the cost reduction plan at Parkside providing further mitigation,” he said.