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RNS Number : 2987M
Topps Tiles PLC
11 January 2023
11 January 2023
Topps Tiles Plc
Q1 Trading Update
Topps Tiles Plc ("Topps Group", or the "Group"), the UK's
leading tile specialist, announces a trading update for the 13-week
period ended 31 December 2022.
Group
The Group has developed and diversified in recent years and now
operates across three business areas: our omni-channel Topps Tiles
brand is the clear market leader in the UK and offers specialist
product expertise and world-class customer service to trade and
homeowner customers; our Online Pure Play offer consists of Pro
Tiler Tools and Tile Warehouse; and our Parkside brand works
directly with architects, designers and contractors in the
commercial market.
Group sales in the 13 weeks to 31 December 2022 were 10.2%
higher year on year(1) , with approximately half of this growth due
to the comparative period in 2021 being prior to the acquisition of
Pro Tiler Tools.
Omnichannel - Topps Tiles
Topps Tiles continues to perform well and has delivered a strong
first quarter. Like-for-like sales(2) were 5.1% higher than last
year, with total sales growth in Topps Tiles approximately 2
percentage points below this due to a lower average number of
stores trading this year(3) . The timing of Christmas and New Year
benefitted first quarter sales by about half a percentage point.
Overall, the business delivered another strong period of trading in
the weeks leading into Christmas, and sales to trade customers
continued to be an area of particular strength.
Online Pure Play - Pro Tiler Tools and Tile Warehouse
Pro Tiler Tools, acquired in March 2022(4) , has continued to
grow at an exceptional rate, with sales in the most recent quarter
up significantly year on year. The introduction of new,
trade-focused brands, further investment in stock and a continued
focus on outstanding customer service have contributed to this
performance, and we are currently working through options to
deliver additional value to the Group through the Pro Tiler team.
Tile Warehouse, launched in May 2022, is now largely through the
initial start-up phase and we are now focusing on driving more
traffic to the website and higher levels of conversion.
Commercial - Parkside
Parkside's financial performance improved at pace in FY22 and,
following a strong second half, the business was trading at
breakeven by the final quarter. Parkside is targeted to deliver a
modest profit this year.
Summary
Overall, the financial year has started well. Following strong
market share growth in FY22, our focus remains on our goal of '1 in
5 by 2025'(5) , which we now expect to deliver ahead of
schedule.
As previously disclosed in the 2022 full year results, we expect
Group profitability in the current financial year to be more second
half weighted than is usually the case. The drivers of this are a
significant year on year increase in our gas expense which will be
weighted towards the autumn and winter period, the timing of
various accruals, the impact of the newer businesses and some
easing in supply chain costs as the year progresses.
The business remains strongly cash generative, with the balance
sheet, cash flows and profitability remaining in line with our
expectations.
Rob Parker, CEO, said: "We are pleased with what has been a
strong first quarter of the new financial year, with strong
like-for-like sales growth in Topps Tiles of 5.1%, excellent
performance from our recent acquisition, Pro Tiler Tools, and
overall Group sales up 10.2% compared with the same period last
year.
"We remain mindful of the macroeconomic headwinds which may
impact UK consumers and businesses in the forthcoming year, but the
Group's strong balance sheet, world class customer service,
specialist expertise and ambitious growth strategy gives us
confidence that we will continue to deliver value over the medium
term."
(1) Group revenue growth is stated before accounting adjustments
including revenue recognition and customer returns provisions.
Includes sales from Pro Tiler Tools and Tile Warehouse in FY23
compared to GBPnil sales recognised in in the Group's consolidated
accounts for Q1 FY22 in the pre-acquisition / pre-launch
period.
(2) Topps Tiles like-for-like sales is defined as online sales
and sales from Topps Tiles stores that have been trading for more
than 52 weeks.
(3) The lower number of stores this year is as a result of the
store closure programme, which has now been completed.
(4) 60% of the share capital of Pro Tiler Limited was acquired
in March 2022, with options in place to acquire the remaining 40%
in March 2024.
(5) Refers to Topps' goal of accounting for GBP1 in every GBP5
spent on tiles and associated products in the UK by 2025, thereby
increasing its market share to 20% from approximately 17% in 2019.
In the 52 weeks ended 1 October 2022 the Group's market share
increased to 19.0% (2021: 17.6%).
For further information please contact:
Topps Tiles Plc
Rob Parker, CEO
Stephen Hopson, CFO 0116 282 8000
Citigate Dewe Rogerson
Kevin Smith
Ellen Wilton 020 7638 9571
Notes to editors
Topps Tiles Plc is the UK's largest specialist supplier of tiles
and associated products, targeting the UK domestic refurbishment
and commercial markets and serving homeowners, trade customers,
architects, designers and contractors from 304 nationwide Topps
Tiles stores, four commercial showrooms and six websites:
www.toppstiles.co.uk , www.parkside.co.uk , www.protilertools.co.uk
, www.northantstools.co.uk , www.premiumtiletrim.co.uk and
www.tilewarehouse.co.uk .
Since opening its first store in 1963, Topps has maintained a
simple operating philosophy -- inspiring customers with unrivalled
product choice and providing exceptional levels of customer
service. For further information on the Group, please visit
http://www.toppstilesplc.com/
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END
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