Topps Tiles has reported significant financial losses amidst a market slowdown, with sales volumes significantly below pre-pandemic levels.
- The company announced a statutory pre-tax loss of £16.2 million over the past financial year, compared to a profit of £6.8 million the previous year.
- Adjusted profits for Topps Tiles have decreased by half, standing at £6.3 million in contrast to earlier figures.
- Revenue faced a downturn, declining 4.1% to £251.8 million, with a marked decrease in like-for-like sales at Topps.
- Sales to trade customers showed more resilience compared to those to homeowners, increasing the trade sales share from 59.6% to 62.8%.
Topps Tiles has encountered a challenging trading environment, resulting in a substantial downturn in its financial performance. The company posted a statutory pre-tax loss of £16.2 million for the year ending 28 September, starkly contrasting a profit of £6.8 million in the previous period. This decline has been primarily attributed to a non-cash impairment charge of £19.4 million, largely related to right-of-use assets, compounded by £3.1 million linked to acquiring remaining shares in Pro Tiler.
Profitability measures, even on an adjusted basis, reflect this challenging environment with a notable reduction from prior levels. Profits have halved to £6.3 million, underscoring the impact of unfavourable market conditions. Moreover, the overall group revenue recorded a drop of 4.1%, settling at £251.8 million. Like-for-like sales, a key performance indicator for the company, saw a significant 9.1% reduction to £210.4 million.
Despite these setbacks, Topps Tiles observed a relatively stronger performance in its sales to trade customers, compared with stagnant or declining sales to homeowners. This trend has been evident as the trade sales mix increased from 59.6% in the previous year to 62.8% in the most recent period.
Rob Parker, Chief Executive, commented on the difficulties faced within the sector, noting that volumes in the tile market have not returned to pre-pandemic conditions. Nevertheless, Parker expressed a degree of optimism, highlighting that the group’s growth strategy has enabled it to outperform the broader tile market. The advent of the new financial year brought signs of modest sales growth, supported by favourable prior-year comparisons and robust trade sales.
Parker also addressed market forecasts, acknowledging mixed signals and weak consumer confidence as potential hurdles to recovery. However, he stressed that strategic initiatives under the company’s Mission 365 agenda have set the stage for future success, with medium-term goals in revenue and profit firmly in focus.
Topps Tiles navigates through a tough economic climate, leveraging strategic growth plans to position itself for future recovery.
