Topps Tiles has warned annual profits will fall sharply after weaker consumer spending and disruption from the recent heatwave hit third-quarter sales.

The tile specialist now expects adjusted pre-tax profit for the year to the end of September to come in above £6.5m, down from £9.2m last year.

The forecast is well below analyst expectations, with an LSEG poll of four analysts having pointed to around £9.2m in annual pre-tax profit.

Topps Tiles said sales fell 1.8 per cent in the three months to 27 June, while like-for-like sales across its main Topps Tiles brand were flat.

Trading worsened through the quarter as consumer confidence remained under pressure and shoppers increasingly shifted towards lower-priced products.

It said recent periods of extreme heat led to temporary work stoppages among housebuilders and tradespeople, further reducing activity levels.

While some of that delayed work is expected to be recovered over the next six months, Topps Tiles warned it was unlikely to come back fully before the end of its financial year.

Chief executive Alex Jensen said: “Topps continues to outperform the wider market despite weaker consumer sentiment and an increased focus on lower-priced products.

“We’re making significant strategic progress across our priorities and the self-help actions we are taking to support profitability are working and will position the business for long-term sustainable growth.

“In the short term, the macro-economic environment continues to remain challenging.”

Topps Tiles said lower consumer spending and pressure in commercial markets, including housebuilding, continued to weigh on demand.

It has reportedly been taking action to protect profits, including cost-cutting and store estate changes, as it seeks to offset weaker demand and rising operating costs.

However, the latest update suggests that market conditions have deteriorated further than expected, with heat-related disruption adding fresh pressure to an already fragile trading environment.

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