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24 Sep 2008 07:00
Topps Tiles Plc
Pre-close period Trading Update
Topps Tiles Plc (the "Company"), the UK's largest tile and wood flooring specialist, reports on trading for the 52 week period ended 27th September 2008, prior to entering its close period. The Board will announce preliminary results for the period on Tuesday 25th November 2008.
Sales from like for like stores over the 8 weeks since we last reported have declined by 13.1%, reflective of the tough trading conditions.
We expect to report that overall revenue for the 52 week period will be flat year on year and will be in the region of £208 million (2007 : £207.9 million), with like-for-like revenues expected to show a decline of c.5% (2007 : up 4.7%).
The Board expects operating profit for the 52 week period to be within the range of analyst estimates.
We have completed the sale and leaseback of 4 freehold properties for a consideration of £4 million, including a £0.7 million profit on disposal.
During the period we have successfully renegotiated our current loan facility, including a favourable relaxation of both covenants associated with the debt and an extension to January 2012. There is a one off arrangement fee of c.£0.5 million associated with this which will be amortised over the remaining period of the facility.
The Group is now operating from 342 stores, having opened a net 21 stores during the course of this financial year.
Commenting on trading, Matt Williams, CEO said:
"The board believes this to be a credible performance against the backdrop of such a challenging retail environment. Whilst we do not expect there to be any short term change to these trading conditions, we continue to have strong foundations and a sound business model which will see the business through this particular phase of the economic cycle. We are managing the business in a prudent manner by tightly controlling cash and costs while maintaining our focus on the service element of our offer."
Enquiries:
Emma Kent/Antonia Coad
Bell Pottinger Corporate & Financial 020 7861 3232
Matthew Williams, Chief Executive Officer
Rob Parker, Finance Director 0161 486 2400
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