17 February 2009
Topps Tiles Plc
"Topps" or the "Company"
The UK's largest tile and wood flooring specialist
Update
Following a review of its exposure to the retail sector in light of the uncertain outlook for the UK economy, one of the providers of credit insurance to the Company's suppliers has informed the Company that it is to withdraw credit insurance cover for the Company's suppliers.
Topps' key suppliers have indicated that they remain supportive of the business and therefore the Board do not consider there will be a material impact on the business as a result of the withdrawal of credit insurance. The well documented deterioration in the credit insurance market has led to the retrenchment of the availability of credit insurance by a number of providers. The Board do not believe a material number of the Company's other suppliers rely on credit insurance and hence the Board do not believe any further withdrawal by providers in relation to Topps will have a material impact upon the Company.
Topps' lending banks also remain supportive of the business. Topps is continuing to maintain its cash balances, has undrawn overdraft facilities and continues to generate cash at the operating level.
The Board remains confident in the Company's resilient business model and continues to manage the business with a prudent focus on cash and costs. Furthermore, the withdrawal of credit insurance in relation to Topps has not had an impact on the Board's expectations for the trading performance of the business in the current financial period.
Enquiries:
Barry Bester, Chairman 0161 486 2400
Matthew Williams, Chief Executive 0161 486 2400
Ann-Marie Wilkinson/Emma Kent, Bell Pottinger 020 7861 3232
This information is provided by RNS
