It was a profitable year for Topps Tiles as the UK’s largest tile specialist not only increased its profits, but achieved its goal of taking £1 of every £3 spent in the UK domestic tile market a year early.
The 53 weeks to 3 October this year marked the 7th consecutive year of market share gains for Topps Tiles. Group revenue increased year on year by 8.7%, and adjusted profit before tax grew by an impressive 19.3%. The company’s net debt, meanwhile, was reduced by £2.1m, reaching £28.4m.
The company’s like for like revenue increased by 5.4%, compared to 8.1% in 2014.
Over the year the company’s strategy of “Out Specialising the Specialists” appeared to pay off. Trade sales increased to 50% of the total, largely driven by the “do it for me” loyalty program and the increased investment in product development. Indeed, 9.3% of tile revenues came from ranges launched in this year.
Also underway this year are programmes designed to “extend the appeal of the Topps brand”, including store improvements and increased management of the store portfolio, which included 2 relocations and 13 refits.
“I am pleased to report that Topps delivered a strong performance for the year, with our focus on convenience, inspiration and range driving sales to a new record and enabling us to hit our strategic goal of a one third share of the domestic tile market a year ahead of schedule,” said Matthew Williams, CEO of Topps Tiles. “Our strategy of ‘Out-Specialising the Specialists’ continues to be very effective and will remain at the heart of what we do as we seek to build on these foundations and target further profitable sales growth.
We have made an encouraging start to the new financial year, with like for like sales in the first eight weeks ahead by 3.3%, in line with our expectations. The Group has entered the period in good shape and with a clear purpose, and we remain energised by the multiple growth opportunities open to the business in the years ahead.”