Topps Tiles reports record H1 revenues

5th Apr 2023 09:17

(Sharecast News) - Tile specialist Topps Tiles reported record first-half revenues on Wednesday, thanks in part to a contribution from acquisition Pro Tiler Tools.

In an update for the 26 weeks to 1 April, the company said revenues rose 9.5% on the same period a year earlier to £130.5m. Around £9m of that was related to the acquisition of Pro Tiler Tools and the launch of Tile Warehouse in 2022.

Like-for-like sales in the first half were up 4.3%, with Topps Tiles delivering revenue of £115.8m, a record for the business as a standalone brand.

Sales per store were 30% higher than in the pre-pandemic period of FY19, including the benefit of transferring sales from closed stores as the company successfully rationalised its store estate, as well as underlying sales growth.

"Whilst gross profit has been rising in recent years following strong sales growth, gross margin percentage has trended down as a result of cost inflation, the growing trade customer mix, product mix and strategic decisions to invest in our customer value proposition," it said.

"In the first half, gross margins in Topps Tiles were lower year on year, however margins improved over the course of the period as we passed through cost price rises, and as supply chain pressures have started to moderate or reverse. As a result of these factors, we expect to see gross margins increase sequentially in the second half."

Chief executive Rob Parker said: "The economic outlook remains uncertain but early signs of easing supply chain pressures, allied to the group's strong balance sheet, world class customer service, specialist expertise and growth strategy give us confidence in our ability to drive value for all stakeholders over the medium term."

At 0915 BST, the shares were up 1.7% at 47.31p.