Topps Tiles has suffered a dip in full-year profits and warned that sales have slumped since Prime Minister Boris Johnson called a general election last month.
The flooring specialist posted a 1.6% decline in statutory pre-tax profit to £12.5m in the 12 months to September 28.
On an adjusted basis, pre-tax earnings were flat at £16m, despite a 1.1% uplift in group sales to £219.2m during the year.
However, Topps cautioned that “consumer demand has weakened further” since the election was called, sparking a 7.2% slump in like-for-like sales during the first eight weeks of its new financial year.
The business insisted that “a reduction in political uncertainty will be key to the short term outlook improving”.
Outgoing Topps Tiles boss Matt Williams said the business had achieved “another year of strategic progress”, hailing “a resilient sales performance” within its core retail business and the “significant development” of its commercial operations.
Sales in its burgeoning commercial arm more than doubled to £4.9m during the year, following the acquisition of Strata. Topps said its move into the commercial sector has “doubled the size of the group’s addressable UK market” providing headroom for future sales growth.
But Williams warned: “At the start of the new financial year, trading conditions have become more challenging, with consumer demand weakening further since the General Election was called in late October.
“Against this backdrop of heightened political and economic uncertainty, like-for-like sales in the first eight weeks have declined. Whilst we expect external events will continue to weigh on consumer confidence for the immediate future, we remain confident that our market-leading retail offer and growing commercial operations give us a strong platform from which to deliver sustainable growth over the medium and long term.”
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