Topps Tiles Regulatory News (TPT)

26 Mar 2008 07:01

Topps Tiles PLC26 March 2008 Topps Tiles Plc Pre-close period Trading Update and Board changes Topps Tiles Plc (the "Company"), the UK's largest tile and wood flooringspecialist, reports on trading for the 26 week period ended 29 March 2008, priorto entering its close period. The Board will announce interim results for the 26week period to 29 March 2008 on Wednesday 28 May 2008. We expect to report that overall revenue growth remains positive and will be inthe region of £106 million (2007: £101.8 million), up 4.1%, with like-for-likerevenue expected to show a decline of 0.5% (2007: up 4.4%). The UK business is expected to show overall revenue growth of 4% (2007: up11.7%). The retail environment continues to be very challenging and we expect toreport that like-for-like revenue will show a decline of 0.5% (2007: +4.0%). Holland is expected to show overall revenue growth in the region of 7% (2007: up35%) and like-for-like revenue will decline by 3% (2007: up 19%). Gross margin for the group over the first half is likely to be broadly in linewith 06/07 full year margin. The Board expects operating profit, for the 26 week period, to be in the regionof £20.7 million (2007: £21.3 million). Interest charges for the group will be around £3.1 million (2007 : £2.8million). In addition to the above results it is anticipated that there will be a markedto market fair value (non cash) loss on interest rate hedging of £2.0 million(2007 : zero). Due to the nature of the underlying financial instrument IAS39does not allow hedge accounting to be applied to these losses and hence thischarge is being applied direct to the P&L rather than offset against balancesheet reserves. The board intend to exclude this loss from any dividendcalculation due to its notional nature. Including this notional charge, profit before tax for the period will be in theregion of £15.5 million (2007: £18.7 million). Our balance sheet remains stable and there have been no significant changes inthe financial position of the Group since the publication of the Annual Reportfor the year ended 29 September 2007. The Group has a new store opening target of a net 20 new UK stores and will haveopened 8 in the period. The UK business is now trading from 309 stores. In Holland we have continued to trade 20 stores throughout the period andenvisage opening 1 or 2 in the second half of the financial year. The Board is pleased to announce that Alan White, currently CEO of N Brown Groupplc, will be joining the Board as a non-executive director with effect from 1April 2008. Alan McIntosh will be resigning from the Board with effect from the end ofMarch. Alan has been on the board for 10 years and the board would like toextend their sincere thanks to him for his contribution over that period and forall of his support and guidance. Commenting on trading, Matt Williams, CEO said: "The negative economic backdrop is translating into an increasingly challengingconsumer market and the Board does not envisage the environment changing in theshort term. We are, however, pleased with the resilience the business has shownover the last few months and we are confident the business model remains robustand will serve us well during the current difficult period." Enquiries:Ann-marie Wilkinson / Emma KentBell Pottinger Corporate & Financial 020 7861 3232 Matthew Williams, Chief Executive OfficerRob Parker, Finance Director 0161 486 2400 This information is provided by RNS The company news service from the London Stock Exchange