Topps Tiles swings to profit after delivering record year of revenue

For the 53 weeks to October 2, 2021, the retailer reported profit before tax of £14m, up from a loss of £9.8m for the same period last year. 

The retailer also delivered what it called a “record year of revenue”, up 18% to £228m, with adjusted retail like-for-like sales up 20%.

Topps Tiles finished the period with adjusted net cash of £28m and underlying net cash generation of £12.5m.

The retailer said current trading remains “robust” with two-year like-for-like sales growth of 18% in the first eight weeks of the new period. 

Topps Tiles did warn of the “continued trading headwinds from reduced consumer confidence, global supply chain challenges and cost inflation”, but said its growth strategy, flexible supply chain and strong balance sheet “provide confidence and platform for growth”.

Chief executive Rob Parker said: “Our full-year results demonstrate the strength of our position as the UK’s leading tile specialist and the potential of the business when it has been able to trade without restriction.

“Despite significant disruption for a three-month period, during which our stores were unable to welcome homeowners, we delivered record revenues for the year and made good progress towards our ‘1 in 5 by 2025’ market share goal.

“We believe this performance underlines the strength of our strategy and the success of new initiatives including the expansion of our value ranges and the introduction of innovative new products. 

“The successful development of our digital offer during the year has been particularly pleasing and we have plans in place to expand this further in 2022.

“Trading in the initial weeks of the new financial year has been robust with two-year retail like-for-like sales growth of 18%.  While trading headwinds are likely to continue over the short term, we are confident in our strategy and our ability to deliver sustainable long-term growth.”