(Adds CEO comments, detail on trading, background)
Nov 30 (Reuters) - British tile retailer Topps Tiles
on Tuesday resumed dividend payouts as full-year profit jumped
more than four-fold despite supply chain pressures, helped by
strong demand from people redoing their homes and cost cuts.
The company that focusses on renovation, maintenance and
improvement of homes in the United Kingdom said it was facing
challenges from global supply chain issues and cost inflation,
with like-for-like retail sales in the first eight weeks of the
new financial year falling 0.7% from a year earlier, though they
remained 18.4% above 2019 level.
"While trading headwinds are likely to continue over the
short term, we are confident in our strategy and our ability to
deliver sustainable long term growth," said Chief Executive
Officer Rob Parker.
Topps Tiles has benefitted from a boom in the home
improvement market since the start of the coronavirus pandemic,
and while higher shipping costs have weighed on profit margins,
it has invested in more inventory to avoid supply chain
disruptions.
Britain eased most COVID restrictions in July after months
of lockdown, but this week ordered the use of masks in retail
settings to curb the spread of the new Omicron variant, which
could spell trouble for businesses.
The company, which suspended dividend payments in March
2020, said it would pay a dividend of 3.1 pence.
Its adjusted profit before tax rose to 15.3 million pounds
($20.4 million) for the year ended Oct. 2, from 3.6 million
pounds a year earlier.
($1 = 0.7509 pounds)
(Reporting by Amna Karimi and Yadarisa Shabong in Bengaluru;
Editing by Milla Nissi)