Topps Tiles’ FY profit to come in ahead of expectations

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Topps Tiles has revealed its full-year adjusted pre-tax profit is expected to come in slightly ahead of market expectations thanks to improved trading in its fourth quarter.

The DIY retailer said the growth comes after a decline in like-for-like revenue in the previous quarter, and noted that it “remains cautious” of the wider economy in the quarters to come.

Comparable sales in the fourth quarter to September 29 rose 1.2 per cent after a 2.3 per cent fall in the previous quarter.

Like-for-like revenue for the year came in flat.

Adjusted revenue for the full year is expected at £215 million, compared with £211.8 million a year before.

“I am pleased to report an improvement in trading over the final quarter which has enabled the Group to post a full year sales result which is slightly ahead of the top end of market expectations and which represents an outperformance of the overall tile market,” said Topps Tiles chief executive Matthew Williams.

The retailer noted that since the Brexit referendum of 2016, many households were cutting back on their home improvements and the housing market had slowed due to inflation rising faster than pay.

Looking ahead, Topps Tiles said it remained cautious about the year ahead, citing uncertainty in the UK economic outlook:

 “(We) will be maintaining our focus on our industry leading gross margins, tight cost control and strong underlying cash generation,” the company added.

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