THE INFORMATION CONTAINED WITHIN
THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE
INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU)
NO. 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW PURSUANT TO THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED. UPON THE
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION
SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC
DOMAIN.
2
October 2024
Topps Tiles
Plc
Q4 Trading
Update
Topps Tiles Plc ("Topps Group", or
the "Group"), the UK's leading tile specialist, announces a trading
update for the 52-week period ended 28 September 2024.
Group sales for the year, excluding
revenues from the assets acquired from the administrators of
CTD1,
were approximately £248 million, a decline of 5.7% from the Group
record high of £263 million reported in the previous year and
broadly in line with the year ending September 2022. Group sales in
the fourth quarter were 4.4% lower1, a slight improvement on the
trends seen across the rest of the year, largely reflecting the
weaker comparatives from the end of FY23.
The trading environment remained
very challenging across the whole year with continued weak demand
in the domestic Repair, Maintenance and Improvement ("RMI") sector,
especially for bigger ticket projects. As previously announced, we
believe that the market has declined by 10-15% year-on year,
indicating that the Group has continued to outperform the wider
market.
Like-for-like
sales2 in Topps Tiles were 8.2% lower year-on-year in the fourth
quarter with trading levels remaining stable. Like-for-like
sales1 for the year were 9.1% lower year-on-year. Sales to
trade customers have continued to be more resilient than sales to
homeowners.
The remainder of our Group
operations have performed significantly ahead of the market with
this progress being driven by our Online Pure Play operations which
are continuing to grow robustly.
In August 2024, we announced the
acquisition of the CTD Tiles brand, certain assets, direct selling
teams and 30 stores for £9 million. Following receipt of an
initial information request from the Competition and Markets
Authority, the CMA has informed us that it intends to review the
acquisition under UK merger control and we are now working with the
CMA in connection with this process.
Rob Parker, Topps Group CEO said:
"We remain focused on the delivery of our new Mission 365
goal3. In a year that has proved challenging in many ways, I
am pleased by how well our teams have responded to the weaker
market, demonstrating both our resilience and our ability to
continue to outperform. I am also satisfied that despite these
challenges we have been able to continue to deliver against our
strategy and take opportunities as they have arisen, supported by
our strong balance sheet."
"Looking ahead, macro-economic
indicators point to a stronger market in 2025. While the timing and
trajectory of the recovery remains hard to predict, we are
confident that our clearly articulated and proven strategy will
enable the further development of the Group in all market
conditions."
The Group will report its results
for the 52-week period ended 28 September 2024 on 26 November
2024.
Notes:
1
Group sales for FY24 are stated before year end accounting
adjustments including revenue recognition, loyalty scheme
accounting and customer returns provisions. Group sales exclude the
impact of the CTD business which was acquired on 19 August
2024.
2 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.
3
Goal to grow Group sales to £365 million per annum in the medium
term
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
|
The person responsible for arranging
the release of this announcement on behalf of Topps Tiles is Rob
Parker, CEO.
Notes to Editors
Topps Tiles Plc is the UK's largest
specialist supplier of tiles and associated products, targeting the
UK domestic and commercial markets and serving homeowners, trade
customers, architects, designers and contractors from 301
nationwide Topps Tiles stores, 30 CTD Tile stores, a range of
direct business to business selling teams, and nine customer-facing
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,
www.flooringmaterials.co.uk,
www.tilewarehouse.co.uk
and www.ctdtiles.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 www.toppsgroup.com
