Topps Tiles hails ‘record’ FY22 sales
Looking ahead, the group's adjusted profits for the year are expected to be towards the upper end of market expectations
Topps Tiles has revealed its sales for the 52-week period ended 1 October 2022 (FY22) hit £247.3m, marking a second consecutive “record” year of turnover, with year-on-year sales growth of 10.6%.
Group sales in the 13 weeks to 1 October (Q4) also increased 4.3% year-on-year, and average weekly sales per store in Topps Tiles this year are 25% higher than in the pre-pandemic period of FY19.
Around half of this growth is due to the transfer of sales from closed stores as Topps Tiles rationalised its store network and improved store sales densities, with the remainder due to underlying sales growth, including strength in trade sales.
Total sales for Online Pure Play (Pro Tiler Tools and Tile Warehouse) also grew 34.3% year-on-year and 43% in Q4.
Parkside, which is focused on architects, designers and contractors in the commercial market, delivered sales growth, with year-on-year revenue up 39.9% in the Q4 and 28.6% in the year overall.
The business has moved to breakeven levels of profitability in the quarter and is expected to deliver a “positive contribution” to the group’s profitability from FY23 onwards.
Looking ahead, the group’s adjusted profits for the year are expected to be towards the upper end of market expectations.
Topps Tiles is in the final stages of renewing its £39m Revolving Credit Facility, which is currently committed until summer 2023. This will be replaced with a new £30m facility, which will be committed until autumn 2025, in order to maintain the group’s balance sheet strength as it continues to invest in growth.
Rob Parker, Topps Tiles CEO, said: “We are delighted to have delivered a second successive year of record sales for the group, with profits expected to be towards the upper end of market expectations.
“Our expansion into the commercial market through our Parkside brand is now generating in excess of £10m of sales, and we expect it to be profitable moving forwards.”
He added: “The group has worked hard to achieve a strong balance sheet with positive net cash and this will serve us well as we move into a period of macroeconomic volatility, leading to a more uncertain environment for consumers. In this context, our 20% market share goal of ‘1 in 5 by 2025’ and our growth strategy to deliver this will remain our primary focus.”
