Tile retailer Topps Tiles Plc has reported record half year sales with profit in line with expectations.
According to its latest trading update for the 26 weeks ended 1 April 2023, total sales for the six-month period were up 9.3% to £130.3m.
Adjusted profit before tax resulted £4.4m, down 38% as previously guided, following adverse exchange rate movements and the impact of inflation on operating expenses.
Topps said it was a record first half for sales in the Topps Tiles brand, driven by “nationwide store coverage, world class customer service, and strong omni-channel capability, with average sales per store up 30% compared to 2019”.
The group added that it experienced strong results in Online Pure Play brands, with “exceptional sales growth” in Pro Tiler Tools.
Like-for-like sales in Topps Tiles over the first seven weeks of the second half were up 4.1% on an underlying basis, with a negative impact of about 1.3 percentage points due to the additional bank holiday, giving overall like-for-like sales growth of 2.8%.
During the period, the retailer celebrated 60 years of trading since the first Topps Tiles store opened in Sale, Manchester in 1963, while stating that its growth strategy is “on track to deliver market share goal of ‘1 in 5 by 2025’ ahead of schedule”.
Commenting on the results, Rob Parker, Chief Executive 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.
“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.”