Tile and wood flooring retailer Topps Tiles reported a fall in pre-tax profit for its full-year after the refinancing of its share buy-back resulted in a higher interest charge. However, the retailer said the “business is in excellent shape”.
For the 52 weeks to September 29, Topps reported that pre-tax profits fell to£37.8 from£39.1 million the previous year. Total group revenue rose 15.4 per cent to£207.9 million and like-for-like revenue increased 4.7 per cent.
Topps Tiles chief executive Matt Williams said: “This year marked the 10th anniversary of our listing on the LSE and another year of strong results which, despite tough trading conditions, underlines the success of our strategy and strength of our brand.”
The retailer has opened 25 stores in the past 12 months, rebranded two from the former TCH format, refitted 10 and closed or relocated a further six. It now has 246 stores in locations including Crewe, Sheffield, Gloucester and Byfleet. Topps has opened a further five stores in Holland, taking its total to 20.
In the first seven weeks of the new financial period, group overall revenue rose 8.4 per cent and like-for-like sales by 1.1 per cent. In the UK, revenue rose 8.1 per cent and like-for-likes were up 1 per cent. In Holland, overall sales increased 18.1 per cent and like-for-like sales rose 2.5 per cent.
“We have had a challenging but positive start to the new financial period and there remains an underlying growth trend in the retail tile market,” said Williams. “While we believe the prospects for the future growth of Topps Tiles remain broadly positive we must not underestimate the potential impact that this year’s turmoil in financial markets will ultimately have on consumers.”
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