Topps Tiles has introduced a new growth strategy over the medium term as it posts a fall in profit and sales.
In the 26 weeks to March 30, the tile specialist recorded a 5.8% dip in like-for-like sales as stores footfall weakened.
The retailer saw a 29.5% fall in adjusted profit before tax to £3.1m in this period, while it also recorded a statutory loss of £1.5m.
Its commercial tile business Parkside also experienced a weaker market in the first half of the year, seeing sales fall 8.7% to £4.2m. However, a £0.2m profit was made compared with a loss of £0.5m in the same period last year.
Online pure play saw sales grow 39.4% year on year to £13.8m.
Current trading over the first seven weeks of the second half were 7.3% lower year on year, while like-for-like sales were down 10.1%.
Topps Tiles is now focusing on its growth strategy dubbed ‘Mission 365, which aims to increase sales to £365m in the medium term, with an adjusted profit before tax margin of 8-10% at group level.
Focus on modernisation
The five key areas of focus will be to modernise the Topps Tiles trader digital experience, expand into new product categories, focus on business-to-business sales, continue to support the Pro Tiler business, and further develop Tile Warehouse.
Topps Tiles chief executive Rob Parker said: “Trading conditions in the first half have been challenging in a tile market which is down 20% on 2019.
Against this backdrop, we are continuing to take market share, our online pure play businesses are growing strongly and the group remains in a robust financial position.
“Lead indicators of market activity, such as mortgage approvals, consumer confidence and smaller ticket DIY spend, are improving, and while we are yet to see this feed through into our customer’s spending patterns, as market leader Topps Group remains well-positioned for recovery.
“Notwithstanding the challenges of current market conditions, we believe that Topps Group has a substantial opportunity to increase sales and profitability over the medium term through our new growth strategy of Mission 365.”
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