Topps Tiles PLC Pre-close Trading Update (6614L)
05 October 2016 - 5:00PM
UK Regulatory
TIDMTPT
RNS Number : 6614L
Topps Tiles PLC
05 October 2016
5 October 2016
Topps Tiles Plc
Pre-close Trading Update
Record revenue and further strategic progress
Trading
Topps Tiles Plc (the "Group"), the UK's largest tile specialist,
announces a trading update for the 52 week period ending 1 October
2016.
Revenues for the 52 week period are expected to be in the region
of GBP215 million (2015: GBP212.2 million over 53 weeks).
Like-for-like revenues are expected to show an increase of c.4.2%
on the prior year (2015: +5.4%).
Like-for-like revenues in the 13 weeks ended 1 October 2016 were
ahead by 1.4%. We estimate that the previously announced strategic
decision to exit from the low margin wood flooring category during
the quarter reduced Q4 like-for-like sales by c.1.5%. This impact
will reduce over Q1 FY2017 as sales from our new range of larger
format tiles build.
Adjusted pre-tax profits for the year ending 1 October 2016 are
expected to be within the range of current market estimates.(*)
* The current range of analyst forecasts for adjusted pre-tax
profits for the 52 week period ending 1 October 2016 is GBP22.0
million to GBP22.7 million, with a consensus of GBP22.3 million
Analysis of LFL sales by quarter
Q1 Q2 H1 Q3 Q4 H2 FY
------------ ------ --------- ------ --------- ------ ------ ------
FY 2016 +4.4% +4.9%(1) +4.7% +6.2%(1) +1.4% +3.8% +4.2%
------------ ------ --------- ------ --------- ------ ------ ------
FY 2015(2) +5.2% +5.2% +5.2% +6.0% +5.2% +5.6% +5.4%
------------ ------ --------- ------ --------- ------ ------ ------
(1) LFL sales growth was impacted by the earlier Easter in 2016.
We estimate this decreased reported LFL sales growth in Q2 by
c.0.6% and increased Q3 reported LFL sales growth by the same
amount.
(2) Prior year numbers have been restated on a consistent
reporting week basis due to the inclusion of a 53(rd) week in H2
FY2015.
Strategic Progress
We continue to make good progress with our strategy of
"Out-Specialising the Specialists", with specific initiatives in
the period including:
Inspiration - Topps trade loyalty scheme
continued to grow with over 40,000 traders
now regularly participating. We have now
launched our new digital loyalty scheme
which will increase opportunities to capitalise
further on the "do it for me trend" in
the UK tile market.
Range - As a result of in-store space
freed up from the exit of the wood flooring
category we are introducing new and exclusive
ranges of tiles, such as our new XL range,
which will meet the growing demand for
even larger tiles and also allow us to
improve overall returns. In total, more
than 50 new ranges have been launched
this year with sales from recently launched
lines accounting for 12.8% of total sales
in the period.
Convenience - In the core estate we opened
5 stores during the quarter. The group
is currently trading from 351 stores including
15 Boutique stores (2015: 348 stores including
13 Boutique stores).
Matthew Williams, Chief Executive Officer, 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."
Topps Tiles will report its final results for the 52 week period
ended 1 October 2016 on Tuesday 29 November 2016.
- Ends -
Enquiries:
Topps Tiles Plc 0116 282 8000
Matthew Williams, Chief Executive
Officer
Rob Parker, Chief Financial Officer
Citigate Dewe Rogerson 020 7638 9571
Kevin Smith / Nick Hayns
Note to editors
Topps Tiles Plc is the UK's largest specialist supplier of tiles
and associated tools and accessories, targeting the UK domestic
refurbishment market and serving a retail and trade customer base
from 351 stores nationwide.
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.
This focus has established Topps as market leader in the UK, and
underpins its successful strategy of growing profitable sales.
For further information, please visit
www.toppstiles.co.uk/media-centre/investors.asp
This information is provided by RNS
The company news service from the London Stock Exchange
END
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