Topps Tiles earnings to beat market expectations

Topps Tiles said positive trading over the summer had helped push full-year pre-tax profits above the top end of expectations.

In a trading update, the UK’s biggest tile company, which now has 370 sites around the country, said like-for-like sales for the 52-week period to the end of September were flat.

But it said a modest lift in fourth-quarter sales – up 1.2% – would push underlying profit before tax for the year ended September 29 to above £15.2 million.

The firm said: “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.”

Topps Tiles bought Leicestershire tile firm Parkside Tiles last year to grow its commercial business and it said that its move into commercial sales had developed “at pace” since the acquisition.

“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,” the firm said.

“Sales growth and margin is in line with plan and new lead generation is very encouraging for the future.”

Topps Tiles said its commercial business would report trading losses of about £1.1m for the full-year, while it continues to invest in its future growth.

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