Topps Tiles HY profits drop despite record sales

Topps Tiles has seen its profit before tax drop to £1.7m compared with £5.6m in the same period last year, for the 26 weeks ended 1 April 2023.

This profit drop comes despite the company posting £130.3m in sales, a record for a six-month period and an increase of 9.3% year on year.

The company stated that this increase in sales was down to nationwide store coverage and strong omni-channel capability, with average sales per store up 30% compared to 2019.

It also saw revenues increase to £68.7m up 9.3% compared with the £66.9m posted the previous year.

Topps stated that it expects profit in the second half of the year to increase as its gross margins improve and the cost of gas declines.

As a result of this expectation the company believes that it will fall in line with its expected market expectations for the year.

Rob Parker, CEO, said: “As we mark our 60th anniversary, we are pleased to be reporting record first half revenue for the Topps Group, reflecting our successful development and diversification as we strengthen our position as the UK’s leading tile specialist.

“Our Topps Tiles brand delivered a further period of robust like-for-like sales growth, with Pro Tiler Tools achieving another exceptional performance, to maintain its strong track record since acquisition in 2022.”

He added: “As expected, our first half profitability reflects the impact of inflation year on year, including significantly increased energy costs, and a number of other one offs. These effects are now reducing or will reverse in full in the second half, underpinning our confidence in a much stronger profit performance in the balance of the year.

“Our strong trading, when combined with our successful strategy, world class customer service, leading product offer and strong balance sheet, gives us increasing confidence in our outlook. We remain confident that we are on track to hit our 20% market share target ahead of schedule.”