Topps Tiles has posted a pre-tax loss of £16.2 million for the 52 weeks ending 28 September, a stark contrast to the £6.8 million profit reported the previous year. The retailer cited weak sales, with volumes falling “well below pre-pandemic levels,” as the primary driver behind the significant decline. On an adjusted basis, the company’s profit halved to £6.3 million.
A key factor contributing to the statutory loss was a £19.4 million non-cash impairment, largely related to right-of-use assets, while £3.1 million was attributed to the acquisition of remaining Pro Tiler shares. Group revenue dropped 4.1% to £251.8 million, with like-for-like sales declining by 9.1% to £210.4 million.
Topps Tiles reported that sales to trade customers were notably stronger than those to homeowners, leading to a shift in sales mix. Trade sales now account for 62.8% of total sales, up from 59.6% in 2023.
Rob Parker, Chief Executive of Topps Tiles, commented, “2024 has been a challenging year for repairs, maintenance, and improvement, particularly for larger ticket spend. In the tile market, volumes remain well below pre-pandemic levels.”
Parker emphasized that while Topps Tiles is not immune to the current pressures, its strategy has enabled the company to outperform the wider tile market. He noted that the early part of the new financial year has seen a return to modest sales growth, supported by weaker year-on-year comparatives and the continued strength of the trade offering.
However, Parker acknowledged that consumer confidence remains a key factor, with macro indicators pointing to continued uncertainty in the market. “We need to see sustained improvements in these metrics before we can be confident of a consumer recovery,” he said.
Despite the challenging environment, Parker highlighted that Topps Tiles has made “good progress” against its Mission 365 strategy, which aims to set medium-term revenue and profit goals. He expressed confidence that the business is well-positioned for a market recovery, citing robust strategic advancements that will underpin long-term growth.