Topps Tiles hits back after MS Galleon criticism

(Sharecast News) - Topps Tiles hit back on Monday after its largest shareholder MS Galleon criticised the tile specialist for a series of "costly blunders" and called on the board to overhaul its senior management and strategy. According to The Times, Piotr Lipko, managing director of the Austrian investor MS Galleon, wrote to Topps Tiles' chairman Paul Forman last week claiming that management had shown a "complete failure" to adapt to the changing retail landscape, citing its comparatively small online business.

MS Galleon - which holds a 29.9% in Topps Tiles - also criticised the company's acquisition of CTD Tiles, describing it as "unequivocally irrational" and "highly detrimental" to the group's interests.

The Times said Lipko told Forman he had "grown frustrated" by his continued lack of engagement.

But Topps Tiles put out a statement on Monday defending its strategy and acquisition of CTD.

The company said it has invested "significantly" in expanding its digital operations over the last five years and that the business is "truly" omni-channel, with 18% of group revenues coming from online. It also said investment in the digital offer for trade customers was driving further growth.

Forman said: "We engage with all our larger shareholders on a regular basis and listen closely to their views. Our strategy was reviewed in April and presented to shareholders in May, with further updates given last week.

"Further expansion of our digital capabilities is at the heart of many of these growth initiatives. Our latest results show that we continue to take market share, consistently outperforming the wider tile market despite very challenging trading conditions. We believe this demonstrates the effectiveness of our strategy, which has the full support of the board."