Topps Tiles profits tumble amid 'difficult' trading environment

(Sharecast News) - Tile specialist Topps Tiles posted a slump in full-year profit on Tuesday as revenue declined in a "difficult" trading environment, amid weaker customer demand. In the 52 weeks to 28 September, adjusted pre-tax profit fell to £6.3m from £12.5m the previous year, with revenue down 4.1% to £251.8m. On a statutory basis, the company swung to a pre-tax loss of £16.2m from a profit of £6.8m.

Topps Tiles said it had been a "challenging" year for the UK tile industry and many businesses facing into the wider repairs, maintenance and improvement (RMI) sector, which had boomed during the pandemic.

The company estimated that the tile market this year will be about 20% smaller than in the pre-pandemic period (2019).

Chief executive Rob Parker said: "2024 has been a challenging year for RMI and especially bigger ticket spend. In the tile market, volumes remain well below pre-pandemic levels. Whilst Topps Group is not immune to these pressures, our growth strategy has served us well and we have continued to outperform the wider tile market.

"The start of the new financial year has seen a return to modest sales growth for the group, helped by weaker prior year comparatives and the continued strength of our trade offer. Whilst pleasing, the forward macro indicators for our market remain mixed, in particular weaker consumer confidence, and we need to see a sustained improvement in these metrics before we can be confident of a consumer recovery."