Lockdown measures weigh on interim numbers at Topps Tiles

(Sharecast News) - Topps Tiles reported a dip in interim revenues on Tuesday, after bumper trading was curtailed by the re-introduction of lockdown measures.
Group revenues for the 26 weeks to 27 March were £103.2m, a 2.8% decline on the same period a year previously. Retail group sales were off 2.4%, but rose 2.8% on a like-for-like basis.

Adjusted pre-tax profits were £5.1m, up on 2020's £1.2m, after strong sales in the first quarter and business rates relief helped offset trading losses in the closing three months. In the first quarter, retail like-for-like sales surged 19.9% before falling 17.3% in the second.

Rob Parker, chief executive, said: "Inevitably, our first-half results reflect two sharply contrasting periods of trading.

"An exceptionally strong performance in the first quarter demonstrated the ability of the business to bounce back following the initial lockdown. Our performance in the second quarter, while materially stronger than in the first lockdown, was heavily impacted by the re-imposition of Covid-related trading restrictions."

All its stores reopened on 12 April, and the firm said it had seen a "rapid increase" in both sales and gross margins since then. Two-year like-for-like sales are were 16.6% higher in the five weeks since reopening, while commercial forward indicators were "improving". The majority of Topps Tiles' revenues come from the retail market, but in recent years it has also expanded into the commercial tile market.

Parker said: "We are confident of a much-improved performance in the second half and believe the group remains well positioned to take advantage of an expected increase in consumer spending."

Topps also said on Tuesday that it would repay around £1m of furlough money it had received in the first half before the year end.

As at 1145 BST, shares in Topps were ahead 5% at 73.90p.