Topps Tiles PLC Acquisition of Strata Tiles (5997W)
April 18 2019 - 1:00AM
UK Regulatory
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RNS Number : 5997W
Topps Tiles PLC
18 April 2019
18 April 2019
Topps Tiles Plc
Acquisition of Strata Tiles
Topps Tiles Plc (the "Group"), the UK's leading tile specialist,
announces the acquisition of 80% of the issued share capital of
Strata Tiles Ltd ("Strata"), a supplier of tiles to the commercial
market. The acquisition also involves the grant of put and call
options relating to the purchase by the Group of the remaining 20%
of the issued shares in Strata, which are exercisable in 2021.
Strata is a recognised and respected brand in commercial tile
supply. With offices in Guildford and a showroom in Bermondsey,
Strata is located close to its customer base within the
architecture and design community and is a leading supplier of
quality porcelain, polished concrete, mosaics, natural stone and
technical stone tiles for commercial design projects. Key market
segments include transport, retail, building cladding projects,
university buildings and residential apartment blocks.
Established in 2002 by the vendors, Jonathan Wiles and Paul
Wallis, who will remain with the business, Strata will be
integrated into the Group's Commercial business unit, established
following the acquisition of Parkside Tiles in August 2017. The
Strata brand will be retained.
The acquisition of Strata will add additional scale to the
Group's fast-growing commercial business as it seeks to build a
leading position in the commercial tile market. Strata is expected
to benefit from the Group's competitive advantage as the UK's
leading tile specialist, particularly its product range and buying
scale.
In the financial year ended March 2018 Strata reported turnover
of GBP4.8m and profit before tax of GBP0.7m (unadjusted). The value
of the gross assets that are the subject of the transaction is
GBP1.5m. Consideration for the acquisition will be financed from
the Group's existing bank facilities. The consideration will be
paid in cash, with GBP3.3m (plus a GBP0.4m closing adjustment)
being paid on completion of the initial acquisition of 80% of the
issued share capital. Up to a further GBP2m will be paid on
completion of the acquisition of the remaining 20% of the issued
share capital, being subject to performance targets over a two-year
period. Post the payment of the initial cash consideration, the net
debt position of the group will be approximately GBP22m. The Board
expects the acquisition of Strata to be accretive to earnings in
the current year and beyond.
Matthew Williams, Chief Executive Officer, said: "Our commercial
business is already expanding at pace, with sales in the first half
growing by around three times year on year. The acquisition of
Strata will accelerate this expansion and demonstrates our
commitment to building a commercial business of quality and scale.
Strata is a well-regarded and well-run business with a strong
brand; and we look forward to welcoming the Strata team into the
Topps Group."
- Ends -
Enquiries:
Topps Tiles Plc 0116 282 8000
Matthew Williams, Chief Executive Officer
Rob Parker, Chief Financial Officer
Citigate Dewe Rogerson 020 7638 9571
Kevin Smith / Nick Hayns
Note to editors, about Topps Tiles Plc
Topps Tiles Plc is the UK's largest specialist supplier of tiles
and associated products, targeting the UK domestic refurbishment
and commercial market and serving a retail and trade customer base
from 361 nationwide retail stores and three commercial
showrooms.
Since opening its first store in 1963, Topps has maintained a
simple operating philosophy - inspiring customers with unrivalled
product choice and providing exceptional levels of customer
service.
For further information, please visit
http://www.toppstilesplc.com/
Important Notices
This announcement contains forward-looking statements with
respect to the operations, performance and financial condition of
the Group. By their nature, these statements are subject to risks,
assumptions and uncertainties that could cause actual results to
differ materially from those expressed or implied because they
relate to future events.
Unless otherwise required by applicable law, regulation, the LR,
the Financial Conduct Authority's Disclosure Guidance and
Transparency Rules or accounting standard, the Group does not
undertake to publicly update any forward-looking statements,
whether as a result of new information, future developments or
otherwise. Nothing in this announcement should be construed as a
profit forecast.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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