Topps Tiles sales beat expectations as stores re-open

(Sharecast News) - Topps Tiles said on Wednesday that trading was ahead of its expectations as stores re-opened after the coronavirus lockdown.
In an update for the 13 weeks to 27 June, Topps said retail trading improved "significantly" as stores re-opened, with average sales per week rising to £3.9m in the final week of June when all stores were trading from £0.8m in April, when they were shut. This was 5.4% below the same week in the prior year on a like-for-like basis.

The performance was ahead of the company's revised expectations following the outbreak of Covid-19.

Chief executive Rob Parker said: "I am pleased with the resilience shown by the business through this period and I would like to thank colleagues across the group for their hard work and dedication which ensured that, by the end of June, all Topps stores were back open and serving our customers safely.

"The group has demonstrated its resilience, with revenues ahead of our expectations, and we have strengthened our financial liquidity through the sale and leaseback of our central warehouse and head office facility."

Topps said that at the period end, it had net cash of £3.9m and available cash headroom of £52.9m.

At 0900 BST, the shares were up 5% at 6.61p.

House broker Liberum said: "The Q3 sales recovery has been better than we initially expected, reflecting well-planned store re-openings, strong customer demand and a robust online performance.

"The exit rate, with sales down just 5.4% year-on-year, is very encouraging."

It added that liquidity headroom of £53m at the period end reflects much-improved balance sheet strength, "supporting the path to significant equity upside".