Topps Tiles revealed like-for-likes have plummeted 13.1 per cent in the past eight weeks, but the specialist retailer has managed to renegotiate its loan covenants.
Topps expects to report flat revenue of about£208 million for the full year to September 27 and expects like-for-likes to be down 5 per cent.
Its operating profit should meet analysts’ estimates and it has renegotiated its loan facility for a one-off arrangement cost of£500,000, to include a relaxation of covenants and an extension of the loan period to January 2012.
Landsbanki analyst Paul Deacon said: “Topps remains a well run business with further headroom for growth. However, the short-term trading environment is likely to remain challenging as consumer confidence remains low and housing market activity subdued.”
Panmure Gordon’s Philip Dorgan said: “We believe Topps will trade through the recession.”