Topps Tiles sales increase as it records progress in all five areas of growth

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Topps Tiles has recorded a rise in sales and profit as well as seeing good progress in its five key growth areas.

Group adjusted sales grew 4.1% to £128m in the 26 weeks to March 29 as the Topps Tiles brand like-for-like sales grew 3%.

Profit before tax reached £3.2m, up slightly from £3.1m in the same period last year. Online pure play sales grew 21.7% to £16.8m.

The group launched its Mission 365 goal last year, to increase sales to £365m in the medium term as well as a potential for 8%-10% adjusted profit before tax margin.

The business has made “meaningful progress” across all five strategic growth areas; aiming to modernise the trade digital experience, expand into new coverings categories, business-to-business sales focus, Pro Tiler Tools and Tile Warehouse.

The acquisition of CTD has “materially accelerated progress” towards the goal.

Current trading shows a strong start to the second half as group adjusted sales in the first seven weeks rose 9.5% year on year.

The Competition and Markets Authority (CMA) investigation into the recent acquisition of CTD concluded with “minimal competition concerns” found, and recruitment for a new chief executive continues with “good progress”.

Topps Tiles chief executive Rob Parker said: “I am pleased with the progress we have made over the first half, which has included an improving sales trend, offsetting the majority of our inflationary cost pressures, and continuing to deliver our strategy; while also delivering a small increase in underlying profitability.

“We have recently announced the conclusion of the CMA investigation into our acquisition of CTD, which will form a major part of the business-to-business element of our growth strategy moving forwards.

“As we look forward to the second half, current trading shows a strong improvement in both our market leading omni-channel business, Topps Tiles, and also in the newer parts of the Group; and we have a clear plan to move CTD into profitability by the final quarter of our financial year and into growth beyond that. As a result, we expect our full year profits to show a meaningful improvement over the prior year.”