Topps Tiles PLC Trading Update (4097O)
October 02 2019 - 1:00AM
UK Regulatory
TIDMTPT
RNS Number : 4097O
Topps Tiles PLC
02 October 2019
2 October 2019
Topps Tiles Plc
Trading Update
Trading
Topps Tiles Plc (the "Group"), the UK's leading tile specialist,
announces a trading update for the 52 week period ending 28
September 2019.
Adjusted revenues(1) for the 52 week period are expected to be
in the region of GBP214 million (2018: GBP214.8 million).
Like-for-like revenues in the 52 weeks were ahead by 0.6% when
compared to the prior year (2018: LFL flat).
Trading over the fourth quarter reflected a more challenging
economic backdrop, with uncertainty impacting on consumer sentiment
and like-for-like sales decreased by 1.9%.
Adjusted pre-tax profits for the year ending 28 September 2019
are expected to be within the range of current market
estimates.(*)
* The current range of analyst forecasts for adjusted pre-tax
profits for the 52 week period ending 28 September 2019 is GBP15.5
million to GBP16.0 million, with a consensus of GBP15.8
million.
Analysis of LFL sales by quarter
Q1 Q2 First Q3 Q4 H2 FY
Half
FY 2019 (1.4)% +1.8% +0.2% +3.8% (1.9)% +0.9% +0.6%
------- ------- ------ ------- ------- ------- ------
FY 2018 +3.4% (2.2)% +0.6% (2.3)% +1.2% (0.6)% 0.0%
------- ------- ------ ------- ------- ------- ------
(1) Adjusted revenues exclude the Parkside and Strata businesses
which are being treated as an adjusting item during the first two
years of ownership while we invest for future growth.
Strategic Progress
-- Group - our "Leading Product" strategy of differentiation
and innovation continues to deliver strategic advantage.
We launched 15 ranges in Q4, and a total of 40 new ranges
in the year, more than a third of which were developed
in-house. Continued progress on leveraging our buying
scale and advantage into the commercial sector means
that almost 70% of Group purchases have been made through
our core supplier group this year.
-- Retail - we launched our new website on October 1(st)
which fully integrates our online offer with our stores,
as we continue our journey towards a true omni-channel
capability. Our customer feedback ratings continue to
be very strong with an overall satisfaction score for
the year of 86% - ranking us #3 within the UK retail
sector (source: Institute of Customer Service). The
Group ended the period with 362 retail stores trading
(2018: 368), having closed three sites during the fourth
quarter.
-- Commercial - Our entry into the commercial tile market
has approximately doubled our addressable market while
staying within our core specialism of tiles. Our strategy
of "Disrupt and Construct" continues to make good progress
and we expect to report revenues of c.GBP5 million for
the year. Parkside opened its new design studio in the
Cotswolds during September, giving it a base of four
locations across the UK. In the recently acquired Strata
business we have been focused on initial integration
and leveraging efficiencies.
Matthew Williams, Chief Executive Officer, said: "Despite
continued tough market conditions it has been a year of significant
strategic progress for the Topps Group. In Retail, the recent
launch of our new, industry-leading website brings new levels of
inspiration to our customers and further integrates our digital and
in-store offer. In Commercial, our investments in building the
salesforce, opening new design studios and improving its digital
capabilities have enabled Parkside to establish significant
momentum in its second year within the Group.
"Our sales growth across the Group for the year as a whole
compares favourably with the overall tile market. However,
political uncertainty continued to weigh on consumer confidence in
the final quarter and we expect this to remain a feature until
there is greater clarity. Longer term, we are confident that our
growth strategy will continue to deliver market
outperformance."
In addition, the Group has recently received a one-off cash
repayment from HMRC relating to historic import duty. The Group
expects to recognise GBP2.3 million in respect of this payment as
an adjusting item in its results for the year ending 28 September
2019.
- 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
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 362 nationwide retail stores and four 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
www.toppstiles.co.uk/media-centre/investors.asp
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