Topps Tiles reports 6% jump in first-quarter like-for-like sales

Commenting on the performance, Topps Tiles chief executive Matthew Williams said: “I am delighted to report an encouraging start to our financial year with like-for-like sales growth of 6% in the first quarter. This is particularly pleasing as it builds on our strong sales growth in the corresponding period in the prior year.

“We are confident that our plan for 2015 will see us further extend the appeal of the Topps brand and move closer to our strategic goal of taking a one third share of the domestic tile market.”

Peel Hunt analyst John Stevenson described the result as a “great performance against tough and accelerating comparatives”.

Stevenson said the debate now is about the scale of potential upgrades for the first half rather than whether the retailer will beat current expectations of £205m in sales and EBITDA of £25.7m over the year ending September 30.

“He warned that the scale of the upgrade will depend on the degree of potential pre-election disruption to home-related spending.

“If we see limited pre-election effects, then the likely outcome for FY2015 will see profit expectations exceed £20m, moving EBIT margins above10% for the first time since 2011.

“Over the medium term, we look for EBIT margins to recover to 15%, reflecting the group’s dominant market share and rising sales performance,” said Stevenson.