Topps Tiles has reported significant financial reversals due to a continuing market slowdown.
- The company registered a pre-tax loss of £16.2 million for the year, reversing a profit from the previous period.
- Sales volume has notably decreased, remaining below levels seen before the pandemic.
- There is a marked decline in group revenue, attributed to weak performance in the homeowner segment.
- Despite economic challenges, Topps has seen relative resilience within its trade customer sales.
In a challenging financial climate, Topps Tiles has announced a pre-tax loss of £16.2 million in the 52 weeks leading up to 28 September, a sharp turnaround from the £6.8 million profit recorded in the previous year. The tile retailer’s adjusted profit also diminished significantly to £6.3 million.
The statutory loss is largely attributed to a non-cash impairment of £19.4 million, predominantly affecting right-of-use assets, alongside costs related to acquiring remaining shares in Pro Tiler, totalling £3.1 million. Group revenues fell by 4.1% to £251.8 million, driven by a notable 9.1% drop in like-for-like sales at Topps.
This downturn was more pronounced among homeowners, as opposed to trade customers whose engagement with Topps was “significantly stronger.” Consequently, the trade mix within the company’s sales increased from 59.6% in 2023 to 62.8% in 2024.
Rob Parker, the Chief Executive, noted that 2024 presented considerable challenges for sectors involving repairs, maintenance, and significant expenditure on improvements. He highlighted that sales volumes in the tile sector have yet to recover to pre-pandemic levels.
While not immune to these market pressures, Topps Group’s forward momentum is supported by its growth strategy, allowing the company to fare better than the broader tile market despite an overall sector decline. Early stages of the new fiscal year have shown a mild recovery in sales, supported by less competitive figures from the previous year and strong trade performance.
Parker remarked that the company had made commendable advances with its Mission 365 strategy, outlining medium-term targets for revenue and profit. He expressed confidence that the strategic groundwork being laid will poise the business for future recovery and bolster long-term outlooks.
Topps Tiles continues to navigate challenging market conditions with cautious optimism and strategic foresight.
