Tile specialist Topps Tiles has recorded a rise in full-year profits and said it has achieved its goal to grow profitable market share.
Topps Tiles reported adjusted pre-tax profit increased from £12.8m to £13m in the year to September 28, its first increase in this measure since 2007. It also achieved gross margin of 60.2%, up from 60%.
The tile specialist, which operates from 328 stores, revealed group revenue had edged up from £177.7m to £177.8m in the year to September 28. But like-for-like sales slipped 0.5%. Its pre-tax profit fell 15% to £10.6m because of exceptional items.
In the first eight weeks of the new financial year, Topps Tiles revealed like-for-likes were up 7.4%.
Market share increased to 28.5% from 27% in 2012, as the retailer worked on providing an “inspirational” shopping experience, “unrivalled” product ranges and increasing its multichannel services.
It said self-help initiatives to control costs have helped the business perform “well in a tough market”.
Topps Tiles chief executive Matthew Williams said: “We have successfully achieved our primary goal of growing profitable market share this year.”
The retailer will begin trading from a new trial small store format in the second quarter called Topps Tiles Boutique. This could “significantly increase” the rate of new store openings, the retailer said.
It is planning to open five new stores this year.
Williams added: “We have made a strong start to the new financial year. While it is too early to confirm that this is a sustained trend, we are encouraged by this performance.
“Shareholders can be confident that, as market leader, Topps remains well positioned to continue to grow profitable market share and capitalise on any further improvement in the UK housing market and consumer confidence in 2014.”