Tile retailer Topps Tiles Plc has reported a strong third quarter with sales delivering growth for the 39-week period ended 1 July 2023.
According to its latest trading update, group sales remained strong in the third quarter, with total sales growth of 4.4% against last year. The comparative period in Q3 2022 included a full contribution from Pro Tiler Tools following its acquisition in March 2022. For the year-to-date 39-week period, total sales growth was 7.6% year on year.
Topps Tiles like-for-like sales were 2.5% higher year on year in the quarter, and 3.7% higher on a year-to-date basis. Gross margins in Topps Tiles continued to improve sequentially quarter on quarter, as inflationary pressures on cost of goods and shipping costs reduce. Operating costs and profits remain in line with its expectations.
The sales performance within the Online Pure Play brands remains “excellent, with sales growth in excess of 60% in the third quarter, led by Pro Tiler Tools,” Topps said.
“As announced in the Interim Results, following a period of weaker trading, a business improvement plan was launched in Parkside in the period. A significant cost reduction plan is now complete, resulting in an annualised reduction in operating expenses of £1.4m. The cost of implementation was approximately £0.4m, which will be treated as an adjusting item at year end. As a result of this change, we believe Parkside is now right sized for current market conditions.
“The Group remains well positioned for future growth in the important B2B market, which is almost as large as the domestic RMI market, through Parkside, Pro Tiler Tools and the dedicated contracts team in Topps Tiles.”
Rob Parker, CEO, added: “As we celebrate our 60th anniversary, we are pleased to be reporting a continued robust performance in the third quarter, led by Topps Tiles and Pro Tiler Tools, and the successful implementation of a business improvement plan at Parkside.
“Looking ahead, we are confident that our core strengths of leading brands, world class customer service, specialist expertise and a strong balance sheet will enable us to continue to deliver value for all stakeholders.”
