Topps Tiles to hit profit target after strong fourth quarter

Topps Tiles said in a pre-close statement for the year to September 29 that full year like-for-like sales are expected to fall 1% despite a 3.7% increase in the fourth quarter.

Revenues for the year are expected to be in the region of £177m, up from £175.5m in 2011.

The current range of analysts’ estimates for adjusted pre-tax profit for the year is £12.7m to £14m, with a consensus of £13.1m.

The retailer said it has opened 13 stores and closed or relocated eight in the year to bring its portfolio to 325.

Topps Tiles reported: “There have been no significant or unexpected changes in the financial position of the group since the publication of the interim report for the half year ended March 30.”

The retailer will announce its preliminary results for the year on November 27. 

Chief executive Matthew Williams told Retail Week he was “pleased” with the performance against a challenging market.

He said: “Like-for-likes were aorund 10% down at the start of the year so we are very pleased. We have been stuck in this rut in terms of consumer confidence for some time and I don’t see the market easing so this was a great performance.”

Williams said the retailer has taken market share from both DIY chains and independent tile specialists. “We are confident from what we see in the market that we continue to take market share,” he said.

Topps Tiles has moved its online order fulfillment to a pick from stores model in the last year.

Williams said that the company is in the process of deciding which elements of its Milton Keynes lab store to roll out to its existing and new stores.