// Topps Tiles warns that profits will fall “materially below” forecasts after continued tough trading
// It said adjusted profit before tax will be between £13.5m-£14.5m, compared to last year’s £16m
// Like-for-likes in the eight-week period to February 22 slid 5.5%
Topps Tiles has warned that its full-year profit before tax will be “materially below” expectations after it continued to endure tough trading.
The flooring retailer said it has not yet enjoyed any of the post-election consumer confidence boost, citing that as the reason for the 5.5 per cent drop in like-for-like sales during the eight week period ending February 22.
“With most of the period complete, the group now expects that first-half profit will be significantly below the prior-year level,” Topps Tiles said.
This prompted the retailer to warn that its full-year performance would be “materially below the bottom end of the current range of market expectations”.
The market had forecast an adjusted pre-tax profit of between £13.5 million and £14.5 million, which was still below last year’s £16 million.
“Trading conditions in our second quarter have remained challenging, reflecting continued weakness in home improvement spending,” Topps Tiles chief executive Rob Parker said.
“Against this backdrop we are taking appropriate action to ensure we remain competitive, to reduce costs and to strengthen cash flows.
“While UK housing market indicators have shown an encouraging improvement in the period since the general election, these traditionally have a lagged impact on our trading and we would not expect to see any benefit from these until later into the second half – our performance during this period will be key to the outcome for the year as a whole.
“We remain confident that our market-leading retail offer and recently established commercial operations give us a strong platform from which to deliver sustainable growth over the medium and long term.”
Topps Tiles’ interim results will be released in May.