Topps Tiles has encountered financial setbacks, reporting a notable pre-tax loss amidst declining demand.
- The company recorded a £16.2m pre-tax loss for the fiscal year ending 28 September 2024, a significant change from a £6.8m profit the previous year.
- A non-cash impairment of £19.4m, mainly concerning right-of-use assets, heavily influenced the statutory loss.
- Sales to trade customers proved more resilient compared to those to homeowners, reflecting a shift in market demand.
- Modest sales growth has begun in the new financial year, aided by favourable year-on-year comparisons and a strong trade offering.
Topps Tiles has reported a substantial financial downturn, attributing it to weakened sales as the market continues to grapple with volumes lingering below pre-COVID-19 levels. The company revealed a pre-tax loss of £16.2m for the 52 weeks ending 28 September 2024, a stark contrast to the previous year’s £6.8m profit.
The decline in earnings has been prominently caused by a £19.4m non-cash impairment, largely pertaining to right-of-use assets. Additionally, a £3.1m cost linked to acquiring remaining shares in Pro Tiler contributed to this financial outcome.
Despite the overall downturn, Topps Tiles noted that sales to trade customers were notably stronger than those to consumers, with the trade sector’s share of sales rising from 59.6% to 62.8% over the year. This shift underscores an evolving market preference towards trade rather than individual consumers.
In light of these challenges, Chief Executive Rob Parker remarked that the year had been difficult, particularly for expenditure on repairs and improvements. However, he expressed satisfaction in the company’s ability to surpass the performance of the wider tile market, though he remained cautious about market conditions given the mixed macroeconomic indicators.
Entering the new financial year, Topps Tiles has seen a slight upturn in sales. This improvement has been aided by weaker comparatives from the prior year and continued robust sales to trade. Parker remains cautiously optimistic, noting that ongoing strategic progress aligns well with their long-term goals, though a full recovery in consumer confidence remains necessary for sustained improvement.
Topps Tiles remains cautiously optimistic in its outlook, showing resilience through strategic positioning despite current market challenges.
