Adrian Hargrave, CEO of SEEEN, explains how the new funds will accelerate customer growth Watch the video here.
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Sympathetic Tempus column article in the Times, p44.
Conclusion: "Hold. A resilient retailer whose move into commercial sector is compelling but backdrop to trading is highly uncertain".
"... at 65p yesterday ... trade for an inexpensive 10 times Liberum's forecast earnings for a yield of 4.8 per cent".
"Topps Tiles's strategy is so obviously the right one and is being carefully and well executed, but there feels little in the way of a catalyst to give the shares firm momentum, so no reason to change the recommendation".
the Prudential declares an interest of 5.06% (threshold crossed on 12/07)
Big seller this morning. Woodford out? Could see buyers piling in here if so. Great results on last update.
Woodford below 5%, as of 05/07, last Friday.
+3.8% in like-for-like sales, that's the best in quite some time.
"While this is in part due to a softer trading period in the prior year we are encouraged that the successful execution of our strategy is delivering good trading results."
Neil Woodford?
Topps to trial supplying Bathstore with all of its tiles after BCT went bust, who used to be Bathstores supplier. This could be a massive money spinner for the company with there being 150+ Bathstores across the country.
Topps Tiles (TPT) has doubled its addressable market size by entering the UK commercial tile space and Liberum says it is on the right path to emulating its success in domestic tiling.
Analyst Adam Tomlinson retained his ‘buy’ recommendation and target price of 95p on the shares, which fell a penny to 72p yesterday.
(from Citywire)
He said the move into commercial tiles doubles the addressable market size to over £700 million and ‘the highly fragmented sector offers an attractive opportunity to take share and supports management’s ambition to become the number one player within five years’.
‘The group is augmenting its two acquisitions - Parkside and Strata - by leveraging its existing scale and supplier relationships, while investing to grow the experienced sales teams,’ said Tomlinson.
He added that a tour of the new showroom showed it was ‘already demonstrating the same expertise, strong customer service and high quality, innovative products, which have driven Topps’ success’.
-- Like for like sales over the seven weeks to 18 May 2019
increased by 1.2% (2018: decreased by 0.2%).
CEO's comment:
"The Group has made an encouraging start to the second half, with trading in the period to date continuing the positive trend seen in Q2. While we are retaining a prudent view of market conditions for the remainder of the year, we remain confident in our ability to continue to extend our market leading position."
Report on Strata Tiles from the H & L website :
TOPPS TILES BUYS 80% STAKE IN COMMERCIAL TILE SUPPLIER STRATA
(Sharecast News) - Tile specialist Topps Tiles has bought an 80% stake in Strata, which supplies tiles to the commercial market, in a deal worth £5.3m that is expected to be earnings-accretive in the current year and beyond.
The acquisition also involves the grant of put and call options relating to the purchase by the group of the remaining 20% of the issued shares in Strata, which are exercisable in 2021.
Established in 2002 by the vendors, Jonathan Wiles and Paul Wallis, who will remain with the business, Strata will be integrated into Topps' commercial business unit, established following the acquisition of Parkside Tiles in August 2017. The Strata brand will be retained.
Topps said the deal will add scale to its fast-growing commercial business as it seeks to build a leading position in the commercial tile market. In the financial year ended March 2018, Strata reported turnover of £4.8m and pre-tax profit £0.7m.
The consideration will be paid in cash, with £3.3m (plus a £0.4m closing adjustment) being paid on completion of the initial acquisition of the 80% stake. Up to a further £2m will be paid on completion of the acquisition of the remaining 20% stake, subject to performance targets over a two-year period.
Following the payment of the initial cash consideration, the net debt position of the group will be approximately £22m.
Chief executive officer Matthew Williams said: "Our commercial business is already expanding at pace, with sales in the first half growing by around three times year on year. The acquisition of Strata will accelerate this expansion and demonstrates our commitment to building a commercial business of quality and scale.
"Strata is a well-regarded and well-run business with a strong brand; and we look forward to welcoming the Strata team into the Topps Group."
Broker Liberum said this was a very positive step forward in Topps' ambition to grow its share of the UK commercial tile market, which doubles its addressable market to around £700m.
"The acquisition makes sound strategic and financial sense, and looks to have been struck at good value for Topps (an implied EV/EBITDA of 6.5x). At this stage we leave our forecasts unchanged but will revise in due course, noting management's comment that it expects earnings accretion in the current year, although we expect a more material impact thereafter."
An acquisition in commercial tiles, that of an initial 80% of Strata Tiles with terms for acquiring remaining 20% in 2021.
Trading has improved at Topps Tiles (TPT) which Liberum says reflects ‘resilient performance’ in a difficult market.
Analyst Adam Tomlinson retained his ‘buy’ recommendation and target price of 95p on the stock, which advanced 3.8p or 5.1% to 77.8p.
First half results revealed improved trading in the second quarter ‘despite continued tough market conditions’.
‘This reflects a resilient performance in a tough market and gives us confidence that the group’s strategy can capture the longer-term opportunities,’ said Tomlinson.
‘This includes its good progress within the UK’s commercial tile space, which has doubled the group’s total addressable market size to £700 million.’
Commercial - our strategy of "Disrupt and Construct" is making
good progress as we build our commercial business. Underlying
commercial sales in the first half have grown by around three
times year on year. During the first half we opened a flagship
design studio in Clerkenwell, the heart of the London's architect
and designer community. We continue to build our team of industry
sales experts, with an additional five sales people joining
the business over the period.
Will there be any cracks in Topps Tiles following Wednesday’s half year results?
The company last updated investors in January 9th when it posted a grubby set of first quarter figures. For the 13 week period ending December 29th, like-for-like sales tumbled 1.4%, a real sharp turnaround from the 3.4% increase seen the same time the year previous, and a drop-off from Q4 2018’s 1.2% rise.
As a reference point, like-for-like sales rose 0.6% at 2018’s halfway point, meaning Topps Tiles needs to have had a rather special second quarter to avoid another comparative decline. Further Brexit uncertainty in the housing sector, however, may make that tough to achieve.
Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here: https://spreadex.com/?tid=389122
Aberforth Partners have upped their stake to 11.02% from 10.03%.
Took a small punt here, looked like we might see a move north.
Like for like revenues down 1.4%.
Unexciting, but a "robust" performance in current circumstances.
So where is the "improvement in growth" that the same analyst foresaw earlier?
It isn't there is it.
Overpriced, with huge overheads in the internet age.
No thanks, not for me.
Shares in Topps Tiles (TPT) are trading at close to a five-year low and Liberum sees ‘good value’ for investors with a long-term outlook.
Analyst Adam Tomlinson retained his ‘buy’ recommendation and target price of 95p on the stock after 2018 profit before tax of £16 million beat expectations slightly due to better gross margin and tight cost control. The shares were trading at 66p yesterday.
‘At this stage, we leave our full year 2019-2021 profit and loss forecasts unchanged,’ he said.
‘Topps’ leading, specialist market position leaves it better placed than competitors and the group’s longer-term growth prospects, including within the UK commercial tile sector, remain very much intact.’
Tomlinson added that the shares trade ‘close to a five-year historic low price/earnings ratio’ and ‘we see good value for those willing to look past the shorter term’.
tomorrow, 27/11/18
Quite a number of domestically-orientated stocks seem to be coming to life, as the media report one or another suggestion that an agreement with the EU is approaching.
Topps Tiles (TPT) has been registering improvements in growth after a quiet summer and it remains well positioned as a market recovery takes hold, says Liberum.
Analyst Adam Tomlinson retained his ‘buy’ recommendation and increased the target price from 90p to 95p after an improvement in fourth quarter like-for-like growth that has led to a full-year profit guidance increase.
‘There has been some bounce back in activity levels following the quieter summer period, although we keep a prudent view on outer years at this stage,’ said Tomlinson.
‘Importantly, Topps continues to demonstrate that it remains very well positioned to benefit when a more sustained market takes hold.’
He added that the shares ‘remain cheap’ and the dividend yield of 5% is ‘attractive’...
https://citywire.co.uk/money/the-expert-view-tesco-topps-tiles-and-cineworld/a1161437?re=58605&ea=189473&utm_source=BulkEmail_Money_Daily&utm_medium=BulkEmail_Money_Daily&utm_campaign=BulkEmail_Money_Daily#i=3
Well done!
Q4 like-for-like revenues up 1.2%.
Trading over the fourth quarter has seen an improvement due to a combination of the continued effectiveness of our strategy and outperformance of our market. As a result, the Board now expects adjusted pre-tax profits for the year ended 29 September 2018 will be slightly ahead of the top end of the current range of market expectations(2) .
"... we continue to make good progress with our expansion into the commercial segment of the UK tile market which will be an important source of future growth for the Group."