// Topps Tiles back in the black: recording £4m half-year profit against last year’s loss of £3.2m
// Overall half-year revenue dipped 2.8% to £103.2m, retail sales down 2.4%
// Like-for-likes up 2%, but compared to same period in 2019 it was up 16.8%
Topps Tiles has swung back into profit during a half-year period which it said reflected “two distinct and contrasting periods of trading”.
For the six months to March 27, the retailer recorded profit before tax of £4 million, against a loss of £3.2 million in the same period last year.
The profits came despite overall half-year revenue dipping 2.8 per cent year-on-year to £103.2 million while retail sales was down 2.4 per cent to the impact of store closures from lockdown.
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While Topps Tiles said like-for-likes in the current half-year period increased two per cent, comparing it to the same half-year period in pre-pandemic times in 2019, like-for-likes had surged 16.8 per cent.
Meanwhile, on an adjusted basis profit before tax came in at £5.1 million, up significantly by 325 per cent year-on-year.
This was a result of strong sales in Topps Tiles’ first quarter, with trading losses in the second quarter – thanks to the third nationwide lockdown – partially offset by business rates relief.
Chief executive Rob Parker said the results demonstrated two sharply constrasted periods of trading.
“In another reporting period dominated by the impacts of Covid-19, Topps has once again shown its flexibility and resilience and I would like to thank all colleagues across the group for the continued hard work and commitment underpinning these results,” he said.
“Inevitably, our first half results reflect two sharply contrasting periods of trading. An exceptionally strong performance in Q1 demonstrated the ability of the business to bounce back following the initial lockdown.
“Our performance in Q2, while materially stronger than in the first lockdown, was heavily impacted by the re-imposition of Covid-related trading restrictions at the start of the period.
“The re-opening of our stores to all customers on 12 April has once again been received very positively and we have seen a strong recovery in sales and gross margins, with retail like-for-like sales 16.8 per cent ahead of the same period in 2019 in the five weeks since re-opening.
“We are confident of a much-improved performance in the second half and believe the group remains well positioned to take advantage of an expected increase in consumer spending as we focus on our market share goal of ‘1 in 5 by 2025’.”