Tile specialist Topps Tiles Plc has reported a third consecutive year of record sales with profits in line with market expectations.

According to its latest trading update for the 52-week period ended 30 September 2023, total group sales in the year were approximately £263m. FY23 was the third consecutive year of record turnover for the Group, with sales now more than £40 million higher than FY19, the last financial year before the Covid pandemic.

Year-on-year, sales increased by 6.4%, which Topps believe represents a significant outperformance relative to the UK tiling market. Group sales grew by 3.2% in the 13 weeks to 30 September 2023.

Like-for-like sales were 3.1% higher in the 52-week period and 1.2% higher year on year in the final quarter its Topps division. Average sales per store were 30% higher than FY19, as a result of significant underlying sales growth and our successful store rationalisation programme, which has now concluded.

Overall, Online Pure Play continues to deliver excellent sales growth, up over 40% in the final quarter of the year, led by the Pro Tiler Tools business which was acquired in March 2022. Sales growth over the whole year, including relevant comparatives from the pre-acquisition period, was approximately 50%, representing an excellent first full year for the business as part of Topps Group.

“As reported in the Q3 trading update, a business improvement plan for Parkside was launched and swiftly concluded in the second half of the year, resulting in an operating cost reduction of c. 35%,” the group said. “As a result, the business moved back into profitability in the fourth quarter. With the business now stabilised, the focus will shift back to consistent profitable growth in the next financial year.

“Through Parkside, Pro Tiler Tools and a dedicated contractor team within Topps Tiles, the Group is well positioned to serve the contractor and commercial markets moving forward.”

Profitability improved in H2 as expected and adjusted profit before tax for the 52 weeks ended 30 September 2023 is expected to be in line with market expectations.

Rob Parker, CEO, said: “As we celebrate our 60th anniversary, we are delighted to have delivered a third consecutive year of record sales in Topps Group, having increased our sales by over £40 million since the pre-pandemic period, reflecting the significant development and diversification of the Group over that time.

“It was also a year of strong strategic progress, in which Topps Tiles continued to take significant market share, Parkside was set-up for profitable growth and Pro Tiler’s performance went from strength to strength.  As a result of this progress, we anticipate delivering our goal of ‘1 in 5 by 2025’ significantly ahead of schedule.

“Despite a slowing RMI market, 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 grow sales, profitability and cash generation in the years ahead, delivering value for all stakeholders.”