Topps Tiles lauds ‘resilient’ H1 2019 performance despite slip in profits
Pre-tax profit fell by 18.8% in the period, while revenue declined by 0.2% year-on-year
Topps Tiles has reported a 0.2% year-on-year decline in revenue for the first half of the 2019 financial year – dropping from £110.5m to £110.3m – while pre-tax profit fell by 18.8% to reach £5.2m in the period.
Adjusted for trading losses from the group’s commercial ventures, Topps Tiles saw a 0.2% increase in adjusted like-for-like sales in the period, totalling £109m, as well as an 11.1% year-on-year rise in adjusted pre-tax profit, reaching £8m.
In April, Topps Tiles acquired an 80% stake in Guildford-based commercial tile supplier Strata Tiles Ltd for £3.3m. The company noted that its Parkside commercial business generated a trading loss of £1m; adjusted figures reflect the exclusion of the loss as the group “invests in growth”.
The company launched 20 new ranges during the period, and noted that its Trade Rewards+ loyalty programme has reached around 99,000 active members compared with the 70,000 recorded last year. So far since the end of H1 2019, Topps Tiles said like-for-like sales have risen by 1.2%.
“The group has delivered a resilient first half performance as we continue to consolidate our position as the UK’s leading tile specialist,” said CEO Matthew Williams. “Against a consumer backdrop which remains challenging, our trading performance was robust, underpinned by further gains in market share.
“Our commercial tile business continues to grow rapidly, with first half sales more than tripling year-on-year. Expansion of the commercial division was accelerated by the acquisition of Strata Tiles in April. Strata is highly complementary to our existing Parkside commercial business and, together, the two brands provide the group with a strong base for further expansion into this large and attractive market segment.”
Williams added: “The group has made an encouraging start to the second half, with trading in the period to date continuing the positive trend seen in Q2. While we are retaining a prudent view of market conditions for the remainder of the year, we remain confident in our ability to continue to extend our market leading position.”