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3 Oct 2018 07:00
3 October 2018
Topps Tiles Plc
Trading Update
Topps Tiles Plc (the "Group"), the UK's largest tile specialist, announces a trading update for the 52 week period ending 29 September 2018.
Adjusted revenues1 for the 52 week period are expected to be in the region of £215 million (2017: £211.8 million). Like-for-like revenues in the 52 weeks were flat when compared to the prior year (2017: -2.9%).
Like-for-like revenues for the 13 week period ending 29 September 2018 increased by 1.2%.
Trading over the fourth quarter has seen an improvement due to a combination of the continued effectiveness of our strategy and outperformance of our market. As a result, the Board now expects adjusted pre-tax profits for the year ended 29 September 2018 will be slightly ahead of the top end of the current range of market expectations2.
Looking ahead, the uncertainty in the UK economic outlook means we remain cautious and will be maintaining our focus on our industry leading gross margins, tight cost control and strong underlying cash generation.
The Group is now trading from 370 sites (2018: 372 stores), having opened 2 and closed 6 stores during the period.
Analysis of LFL sales by quarter
| Q1 | Q2 | H1 | Q3 | Q4 | H2 | FY |
FY 2018 | +3.4% | -2.2% | +0.6% | -2.3% | 1.2% | -0.6% | 0.0% |
FY 2017 | +0.3% | -4.1% | -1.9% | -4.7% | -3.0% | -3.9% | -2.9% |
1 Adjusted revenues exclude the Parkside business which is being treated as an adjusting item during the first two years of ownership while we invest for future growth.
2 Market expectations for underlying profit before tax for the year ended 29 September 2018 are in the range of £14.6m to £15.2m, with a consensus of £14.9m
Strategic Progress
Our continued investment in the business underpinned further strategic progress in the period.
• | Range - we have launched more than 25 new product ranges, exclusive to Topps, in the last 12 months. We are successfully leveraging our specialism in tiles to drive product differential. Our uniquely curated product collections are enabling our customers to create inspirational spaces with tiles and unique finishing touches.
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• | Retail - We continue to ensure that our offer remains market-leading through a focus on great value for both our trade and retail customers, supported by world class service and targeted investment into both digital and traditional marketing. Over 150 of our stores now have our latest merchandising treatment and we will continue this programme in the year ahead.
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• | Commercial - the development of the commercial business has progressed at pace since the acquisition of Parkside in September 2017. Investments so far have expanded the sales resource, created two architectural showrooms in Chelsea and Leicester, and integrated the supply chain into the Group function. Sales growth and margin is in line with plan and new lead generation is very encouraging for the future. As expected, commercial will report trading losses of around £1.1 million for FY18, while we continue to invest in its future growth.
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Matthew Williams, Chief Executive Officer, said: "I am pleased to report an improvement in trading over the final quarter which has enabled the Group to post a full year sales result which is slightly ahead of the top end of market expectations and which represents an outperformance of the overall tile market. Our core Topps Tiles business is a well invested, cash generative market leader with a proven strategy and we continue to make good progress with our expansion into the commercial segment of the UK tile market which will be an important source of future growth for the Group."
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Enquiries:
Topps Tiles Plc | 0116 282 8000 |
Matthew Williams, Chief Executive Officer |
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Rob Parker, Chief Financial Officer |
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Citigate Dewe Rogerson | 020 7638 9571 |
Kevin Smith / Sam Stibbs |
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Note to editors
Topps Tiles Plc is the UK's largest specialist supplier of tiles and associated products, targeting the UK domestic refurbishment and commercial market.
Since opening its first store in 1963, Topps has maintained a simple operating philosophy - inspiring customers with unrivalled product choice and providing exceptional levels of customer service.
For further information, please visit http://www.toppstilesplc.com
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