Topps Tiles grew full-year profits and market share as it revealed it would not initially pass on the January VAT rise to customers.

Topps Tiles chief executive Matt Williams said there are “no plans for a price rise in the new year”. He said it would swallow the increase at least for the first part of the year.

The tiles specialist increased pre-tax profits from £9.9m to £12.4m in the 53 weeks to October 2 as the retailer kept a tight control on costs. Like-for-likes increased 1.7% while total group revenue rose 2% to £182.4m. In the first seven weeks of the new financial year like-for-likes improved, increasing 3.2%.

However, full-year adjusted pre-tax profits declined from £17.5m to £16.3m, after impairment charges and other restructuring and one-off costs. The retailer grew its market share from 23% to 25%.

Williams said: “It’s an encouraging set of results in a tough market. We’re outperforming the market and I don’t see why that shouldn’t continue.”

He said a new £3m warehouse in Leicestershire will enable Topps Tiles to grow to 400 stores, from 275 at present. It also has 37 cash and carry stores under the Tile Clearing House fascia.

Execution Noble analyst Sanjay Vidyarthi said: “The business is outperforming in a difficult market, but, should conditions deteriorate, we expect management to batten down the hatches very quickly again.”

Singer Capital Markets analyst Matthew McEachran said the results were “in line with expectations”.

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