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RNS Number : 9702E
Topps Tiles PLC
05 July 2023
5 July 2023
Topps Tiles Plc
Q3 Trading Update
Topps Tiles Plc ("Topps Group", or the "Group"), the UK's
leading tile specialist, announces a trading update for the 39-week
period ended 1 July 2023.
Group
Group sales remained strong in the third quarter, with total
sales growth of 4.4% against last year. The comparative period in
Q3 2022 included a full contribution from Pro Tiler Tools following
its acquisition in March 2022. For the year-to-date 39-week period,
total sales growth was 7.6% year on year.
Omnichannel - Topps Tiles
The robust sales performance from Topps Tiles continued into the
third quarter. Like-for-like sales (1) were 2.5% higher year on
year in the quarter, and 3.7% higher on a year-to-date basis.
As expected, gross margins in Topps Tiles continued to improve
sequentially quarter on quarter, as inflationary pressures on cost
of goods and shipping costs reduce. Operating costs and profits
remain in line with our expectations.
Customer satisfaction remains at world class levels and
recruitment and supply chain pressures continue to reduce over
time.
Online Pure Play - Pro Tiler Tools and Tile Warehouse
The sales performance within the Online Pure Play brands remains
excellent, with sales growth in excess of 60% in the third quarter,
led by Pro Tiler Tools.
Commercial - Parkside
As announced in the Interim Results, following a period of
weaker trading, a business improvement plan was launched in
Parkside in the period. A significant cost reduction plan is now
complete, resulting in an annualised reduction in operating
expenses of GBP1.4 million. The cost of implementation was
approximately GBP0.4 million, which will be treated as an adjusting
item at year end. As a result of this change, we believe Parkside
is now right sized for current market conditions.
The Group remains well positioned for future growth in the
important B2B market, which is almost as large as the domestic RMI
market, through Parkside, Pro Tiler Tools and the dedicated
contracts team in Topps Tiles.
Summary
Trading in the third quarter saw a continuation of the good
performance reported for the first half. We remain confident that
adjusted profit before tax in the second half will be materially
higher than the first half, and that we will perform in line with
market expectations (2) for the year as a whole.
The Group's growth strategy, strong brands and world class
customer service, underpinned by our strong balance sheet, give us
confidence that we will continue to take market share and deliver
our goal of '1 in 5 by 2025(') (3) ahead of schedule.
Rob Parker, CEO, said: "As we celebrate our 60(th) anniversary,
we are pleased to be reporting a continued robust performance in
the third quarter, led by Topps Tiles and Pro Tiler Tools, and the
successful implementation of a business improvement plan at
Parkside.
"Looking ahead, we are confident that our core strengths of
leading brands, world class customer service, specialist expertise
and a strong balance sheet will enable us to continue to deliver
value for all stakeholders."
(1) Topps Tiles like-for-like sales is defined as online sales
and sales from Topps Tiles stores that have been trading for more
than 52 weeks.
(2) Current market expectations for FY23 as of 4 July 2023 are a
range of GBP11.3 million to GBP12.3 million of adjusted profit
before tax, with a consensus of GBP11.8 million.
(3) Refers to Topps' goal of accounting for GBP1 in every GBP5
spent on tiles and associated products in the UK by 2025, thereby
increasing its market share to 20% from approximately 17% in 2019.
In the 52 weeks ended 1 October 2022 the Group's market share
increased to 19.0% (2021: 17.6%).
For further information please contact:
Topps Tiles Plc
Rob Parker, CEO
Stephen Hopson, CFO 0116 282 8000
Citigate Dewe Rogerson
Kevin Smith
Ellen Wilton 020 7638 9571
Notes to Editors
Topps Tiles Plc is the UK's largest specialist supplier of tiles
and associated products, targeting the UK domestic refurbishment
and commercial markets and serving homeowners, trade customers,
architects, designers and contractors from 304 nationwide Topps
Tiles stores, a commercial showroom in London and seven websites:
www.toppstiles.co.uk , www.parkside.co.uk , www.protilertools.co.uk
, www.northantstools.co.uk , www.premiumtiletrim.co.uk ,
www.warmfloorstore.co.uk and www.tilewarehouse.co.uk .
Since opening its first store in 1963, Topps has maintained a
simple operating philosophy -- inspiring customers with unrivalled
product choice and providing exceptional levels of customer
service. For further information on the Group, please visit
http://www.toppstilesplc.com/
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END
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