Topps Tiles reports slowdown in sales

In a pre-close trading update for the 52-week period ending 1 October, tile specialist Topps Tiles reported a slowdown in sales as it took a slight hit from its decision to exit the wood flooring business.

Revenues for the period are expected to be in the region of £215m compared to £212.2m over 53 weeks in 2015. Like-for-like revenue are expected to show an increase of around 4.2% versus the previous year, compared to a 5.4% jump in 2015.

The company said LFL revenues in the 13 weeks to 1 October were up 1.4%, down from a 6.2% increase in the third quarter and Topps said the previously announced strategic decision to exit from the low-margin wood flooring category reduced fourth-quarter LFL sales by around 1.5%.

Still, this impact is expected to reduce over the first quarter of next year as sales from the new range of larger format tiles build.

Topps Tiles also said on Wednesday that adjusted pre-tax profit for the year is expected to be in the range of current market estimates of £22m to £22.7m.

Chief executive officer Matthew Williams said: “I am pleased to report on a successful year for Topps, where we grew sales to a new record, through our proven strategy of 'Out Specialising the Specialists'.

“Whilst market conditions weakened over the final quarter as a result of reduced levels of consumer confidence we remain confident in our ability to outperform the market and deliver our goal of further profitable sales growth."

At 0804 BST, the shares were down 7.2% to 103.50p.