30 June 2021
Topps Tiles Plc
Q3 Trading Update
Strong Retail sales and positive trading outlook
Topps Tiles Plc ("Topps" or the "Group"), the UK's leading tile specialist, announces a trading update for the 13-week period ended 26 June 2021.
Our omni-channel Retail business has performed well over the third quarter, reporting robust sales growth in the period following the re-opening of our retail stores to all customers on 12 April 2021. On a two-year basis, Retail like-for-like sales increased by 12.9% over the third quarter as a whole, and were up 18.5% in the eleven weeks since the stores fully re-opened. The successful launch of our extended outdoor range and increasing demand for our value offer has driven higher sales in the eleven week period and, while percentage gross margins in the period were slightly lower than previous guidance, our gross profits were strong. We are well placed to benefit from continuing high levels of consumer demand in the home improvement sector over the coming months.
2 weeks to 10 April 2021 (Trading restrictions) | 11 weeks to 26 June 2021 (No trading restrictions) | 13 weeks to 26 June 2021 | |
Two-year Retail like-for-like sales | -17.1% | 18.5% | 12.9% |
We remain confident that we will grow sales in the Commercial business this financial year as key market sectors begin to recover.
The Group remains debt free and, as indicated at the half year, the cash position of the business improved further in the quarter following the normalisation of working capital balances as trading restrictions were removed. We have now repaid all support received in the first half of this financial year from the Coronavirus Job Retention Scheme, and at the end of the third quarter, our cash balance has increased to £26.9 million.
Rob Parker, CEO, said: "I'm encouraged by the strength of the Group's performance in the third quarter, following the lifting of trading restrictions in mid-April. Building on the initial recovery we reported at the time of our interim results, our Retail sales strengthened further over the balance of the period.
We remain positive on the trading outlook for remainder of the financial year, and are well positioned to take advantage of increased consumer confidence and spending as we focus on our market share goal of '1 in 5 by 2025'*."
The Group will announce a trading update for the 53 weeks ending 2 October 2021 on 6 October 2021.
* Refers to Topps' goal of accounting for £1 in every £5 spent on tiles and associated products in the UK by 2025, thereby increasing its market share to 20% from approximately 17% at present.
For further information please contact:
Topps Tiles Plc | |
Rob Parker, CEO Stephen Hopson, CFO | 0116 282 8000 |
Citigate Dewe Rogerson | |
Kevin Smith/Lizzy Kittle | 020 7638 9571 |
Notes to editors
Topps Tiles Plc is the UK's largest specialist supplier of tiles and associated products, targeting the UK domestic refurbishment and commercial market and serving a retail and trade customer base from 322 nationwide Retail stores, 7 Commercial showrooms and three trading websites: www.toppstiles.co.uk, www.parkside.co.uk and www.stratatiles.co.uk.
Since opening its first store in 1963, Topps has maintained a simple operating philosophy ‐ inspiring customers with unrivalled product choice and providing exceptional levels of customer service. For further information on the Group, please visit http://www.toppstilesplc.com/
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