In the latest annual results, Topps Tiles experienced a drop in sales, highlighting the difficulties faced in a challenging market environment over the past year.
- Annual revenues for Topps Tiles decreased by 5.7% to £248 million, excluding contributions from newly acquired CTD Tiles.
- The tiles market is witnessing prolonged weak demand, particularly in the domestic repair, maintenance, and improvement sector, affecting larger projects significantly.
- Despite the difficulties, Topps Tiles saw a slight uptick in sales trends during the fourth quarter, indicating possible future recovery.
- CEO Rob Parker remains focused on achieving a medium-term sales target of £365 million, backed by strategic resilience and market outperformance.
Topps Tiles reported a 5.7% reduction in its annual revenue, bringing total sales down to £248 million for the year ending 28 September. This figure excludes the new income streams from its recent acquisition of CTD Tiles in August. The company describes the trading climate as ‘challenging’, with a notably muted demand in the domestic repair, maintenance, and improvement sector, especially for more substantial projects.
Activity in the fourth quarter saw a continuation of sales decline by 4.4%, although this was a slight improvement in trend when compared to earlier quarters in the year. This suggests a potential for gradual recovery as market conditions evolve and improve.
Rob Parker, CEO of Topps Tiles, conveyed in a statement: ‘In a year that has proved challenging in many ways, I am pleased by how well our teams have responded to the weaker market, demonstrating both our resilience and our ability to continue to outperform.’ He remains optimistic about the future, citing macro-economic indicators that suggest a robust market by 2025.
Looking ahead, Parker mentioned that the uncertainty surrounding the economic recovery’s timing and path does not weaken their confidence in their clearly defined and proven strategy, which should support further development regardless of prevailing market conditions.
Despite current market challenges, Topps Tiles is poised to leverage its strategic strengths to navigate and potentially thrive in the evolving economic landscape.
