Topps Tiles (TPT)

Sector:

Retailers

Index:

FTSE Small Cap

45.20p
   
  • Change Today:
      0.65p
  • 52 Week High: 56.40
  • 52 Week Low: 43.10
  • Currency: UK Pounds
  • Shares Issued: 196.68m
  • Volume: 123,201
  • Market Cap: £88.90m
  • RiskGrade: 190

Topps Tiles reports record first-half turnover

By Josh White

Date: Tuesday 24 May 2022

LONDON (ShareCast) - (Sharecast News) - Specialist tile retailer Topps Tiles reported a record first half turnover of £119m on Tuesday, supported by ongoing strength in the UK repair, maintenance and improvement (RMI) sector, as well as success in its growth strategy.

The London-listed firm said like-for-like sales were ahead 22.7% on a two-year basis in the 26 weeks ended 2 April, and up 19.7% on a one-year basis.

Group gross margins were relatively stable at 56.1%, compared to 57.6% a year earlier, which the board put down to increases in the cost of goods being passed through to customers on a "pound-for-pound basis", together with mix changes.

Costs were said to have been well-controlled, with increases due to inflation and the normalisation of business rates expenses.

Adjusted profit was ahead 37% year-on-year to £7m, while the firm increased its stock holding to support sales in a "challenging" supply chain environment.

Cash narrowed due to the acquisition of Pro Tiler, investment in working capital and the repayment of deferred VAT, although it was expected to improve by the year-end.

The board declared an interim dividend of 1p per share, up from the nil distribution made for the first half of the 2021 financial year.

Operationally, Topps Tiles said trading remained at "good levels" within its primary Topps brand, with like-for-like sales growth of 5.7% in the first seven weeks of the second half.

In the most recent five weeks, where the comparative period in 2021 was not impacted by trading restrictions, sales on a like-for-like basis were "slightly below" a very strong period last year, as expected.

Inflationary pressures remained, with gas prices, shipping costs and the availability of raw materials still challenging.

Topps Tiles said its strong brands, operational flexibility and well-capitalised balance sheet left it "well-positioned" to respond to a more uncertain consumer outlook.

"The group has delivered record first half revenues against a backdrop of continued robust demand for home improvements," said group chief executive officer Rob Parker.

"While supply chain and inflation headwinds strengthened in the period, we are managing these challenges effectively overall and believe we remain well positioned relative to many of our competitors.

"We have continued to develop the Topps Tiles brand, enhancing our store portfolio and introducing a number of new developments to our award-winning website to further strengthen our omni-channel capability."

Parker added that the company was pleased to launch the Tile Warehouse brand, an online-only operation set to focus on low prices aimed at homeowners.

"This builds on the acquisition of Pro Tiler in March, and forms the basis for a new, high growth, online-only sales channel, leveraging our core strengths in product, service and scale.

"Looking ahead, we are mindful of the growing burden on consumers from inflation and rising interest rates as well as ongoing supply chain challenges, however, we remain confident in our strategy and medium term growth prospects."

At 1035 BST, shares in Topps Tiles were up 1.92% at 53p.

Reporting by Josh White at Sharecast.com.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Topps Tiles Market Data

Currency UK Pounds
Share Price 45.20p
Change Today 0.65p
% Change 1.46 %
52 Week High 56.40
52 Week Low 43.10
Volume 123,201
Shares Issued 196.68m
Market Cap £88.90m
RiskGrade 190

Topps Tiles Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
33.20% above the market average33.20% above the market average33.20% above the market average33.20% above the market average33.20% above the market average
73.68% above the sector average73.68% above the sector average73.68% above the sector average73.68% above the sector average73.68% above the sector average
Price Trend
19.2% below the market average19.2% below the market average19.2% below the market average19.2% below the market average19.2% below the market average
12.2% below the sector average12.2% below the sector average12.2% below the sector average12.2% below the sector average12.2% below the sector average
Income
93.44% above the market average93.44% above the market average93.44% above the market average93.44% above the market average93.44% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Growth
78.17% below the market average78.17% below the market average78.17% below the market average78.17% below the market average78.17% below the market average
35% below the sector average35% below the sector average35% below the sector average35% below the sector average35% below the sector average

What The Brokers Say

Strong Buy 2
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 2
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Topps Tiles Dividends

  Latest Previous
  Final Interim
Ex-Div 21-Dec-23 08-Jun-23
Paid 02-Feb-24 14-Jul-23
Amount 2.40p 1.20p

Trades for 28-Mar-2024

Time Volume / Share Price
16:04 3,530 @ 44.86p
15:40 2 @ 45.90p
15:40 47 @ 45.90p
15:40 100 @ 45.90p
15:40 4 @ 45.90p

Topps Tiles Key Personnel

CEO Robert Parker
CFO Stephen Hopson
Chair Paul Forman

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