Topps Tiles PBT falls to £6.8m despite record revenues

Topps Tiles has revealed its profit before tax fell 37.6% to £6.8m in FY23 despite reporting a third consecutive record year of revenues as they increased 6.3% to £262.7m. 

The retailer said that sales per store were up 30% compared with pre-pandemic levels due to further improvements to its customer service scores and successful expansion into new product categories. 

During the 52 weeks to 30 September, the group’s largest brand, Topps Tiles, generated like-for-like sales growth of 3.1% and total sales of £230.9m. Pro Tiler Tools and Tile Warehouse recorded sales of £22.4m, meanwhile Parkside slightly dipped to £9.4m, compared with £10.9m in 2022.

Despite achieving its market share goal “two years ahead of schedule”, the company saw adjusted profit before tax dipping 19.9% to £12.5m due to the impact of cost inflation. 

In the first eight weeks of the new financial year, the flooring retailer experienced a softer build into the seasonal peak trading period, with sales down 3% year on year, including like-for-like sales in Topps Tiles down 6.1% and “strong growth” continuing in Pro Tiler Tools.

Commenting on the results, Rob Parker, chief executive, said: “While profitability for the year reflects the impact of inflation on our cost base, particularly during the early months of the period, these pressures began to abate in the second half, with the smaller store estate and the cost reduction plan at Parkside providing further mitigation. 

“As we enter our new financial year, it is clear that there has been a weakening of discretionary consumer spending. The business is well positioned to deal with this period, our established brands are market leading, we are competitively advantaged and we are confident that we will continue to take market share. Topps Group continues to develop and diversify and we remain excited by the opportunities ahead of us.”