Topps Tiles expects to report an 18 per cent slump in like-for-like sales for the 26 weeks to March 28.

The tiles retailer expects to generate around£92m in sales, compared with£106.3m last year.

Topps Tiles trades from 340 stores, and said it intends to “pursue a more limited store opening programme for the remainder of the financial year”.

Singer Capital Markets analyst Matthew McEachran said: “Topps sales trends have begun to stabilise on a two-year run rate of a little under 20 per cent like for like. March sales trends were more encouraging in terms of this stabilisation pattern than had been the case earlier in the half, but it is still far too early to be talking about green shoots.”

Last month some of the retailer’s suppliers had their credit insurance removed by Euler Hermes. At the time Topps Tiles said that it did not expect the withdrawal to have a material impact on the business and said its key suppliers "remain supportive".

Topps Tiles will reveal its interim results for the 26-week period on May 27.

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