RE: AGM vote22 Jan 2024 12:43
Considering the current economic backdrop and the impact of minority interest accounting on the results (including the cost of acquiring the remaining interest in ProTiler being expensed to the P&L), the last results were actually pretty good. TPT is not immune from the economic headwinds but, despite the tile market contracting, TPT has managed to grow its market share. Also, the fact that gross margins have fallen is somewhat misleading; the ProTiler brand actually delivers similar operating margins to the Topps Tile brand. When, as expected, TPT buys out the remaining minority interests in ProTiler at the end of March there will be an immediate boost to both PBT and EPS (even if FY24 results continue to slide). Furthermore, TPT has a healthy amount of cash and continues to be cash generative.
When the economy begins to rebound TPT will be in a very stong position. FY24 may prove tough as last year's inflationary rises really start to bite and people start to tighten their belts still further (as the recent Q1 update showed) but TPT is well placed to benefit from any future uptick.
I'm really not sure what you expected from last year's results unless you expected TPT to hand its profits to MS Galleon on a plate! MS Galleon clearly has an axe to grind (it wants all of the benefits of outright ownership without the associated cost). What's your beef?