Topps Tiles loving UK's 'improve not move' trend
Tile and wood flooring firm Topps Tiles' recent sales gave it 'cause for confidence' as it benefits from the UK's 'improve not move' trend.
Tile tales: The first Topps Tiles store was opened in Manchester in 1963
Like-for-like sales in the first seven weeks of its new financial year were up 3.2% on the previous year.
The improved sales represent a turnaround after a decline in like-for-like revenues over the summer as consumers delayed home improvements amid the uncertainty surrounding the general election and emergency budget.
Home furnishing businesses - such as wallpaper and fabric firm Walker Greenbank - have put decent sales down to homeowners choosing to improve their homes rather than moving house.
Topps Tiles, which trades from 312 outlets across the UK, recorded pre-tax profits before exceptional items of £12.4m in the year to October 2, up from £9.9m the previous year. The firm also resumed its final dividend at 1p per share.
Chairman Barry Bester said: 'The business is performing in line with expectations and current trading figures also offer cause for confidence.'
But Mr Bester said while the firm was aware Government spending cuts could have an impact on consumer demand, it remained confident its business was well-positioned for future growth.
Topps Tiles is rolling out an expansion plan to increase the number of its stores to potentially more than 400 in the UK. The company said it plans to open 10 new stores in the coming year, after opening 12 stores in the last 12 months. To support the expansion, Topps has started work on a £3m warehouse at its Leicestershire headquarters.
Freddie George, retail analyst at Seymour Pierce Research, said the results were in line with expectations.
He said: 'After a reasonable fourth quarter, current trade appears to be holding up with the like-for-like sales reported to be up by 3.2% in the seven weeks of the current financial year, perhaps a sign of some help from an 'improve not move' phenomenon and consumers bringing forward spending ahead of the VAT increases.'
The first Topps Tiles store was opened in Manchester in 1963 and the firm currently has a 25% market share.
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