Topps Tiles PLC Trading Update (9828V)
August 13 2020 - 1:00AM
UK Regulatory
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RNS Number : 9828V
Topps Tiles PLC
13 August 2020
13 August 2020
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Topps Tiles Plc
Trading Update
Robust like-for-like growth; modest pre-tax profits now expected
for FY20; well-positioned to strengthen market position
Trading
Topps Tiles Plc (the "Group"), the UK's leading tile specialist,
announces a trading update for the six week period ended 8 August
2020.
Retail trading over the first six weeks of our final quarter has
been robust, with like for like retail revenues growing by 15.5%
year-on-year.
Home improvement demand has been strong across the period, with
DIY activity increasing sharply and Trade customer activity
recovering steadily from April lows. While online sales have
moderated from the peaks seen in April and May they remain above
previous levels, leveraging the Group's recent online
investments.
Average Weekly Sales*
April May June Q4 to date
(6 weeks)
FY 2020 GBP0.8m GBP1.3m GBP3.3m GBP4.4m
-------- -------- -------- -----------
FY 2019 GBP4.0m GBP4.2m GBP4.1m GBP3.9m
-------- -------- -------- -----------
YoY% (80)% (69)% (20)% +13.1%
-------- -------- -------- -----------
* Average weekly sales for Topps Tiles retail business (stores
and online business)
The business is now operating as normal with all stores open and
the vast majority trading a full seven day week. With our
colleagues having now returned to work, the Group has ceased to
make use of the UK Government's Job Protection Scheme.
Our Retail performance over the last six weeks, combined with an
order bay(1) which is significantly ahead of the prior year, means
that the Board now expects that the Group will generate a modest
level of adjusted profit before tax(2) for the 52 weeks ended 26
September 2020.
In our Commercial business sales remain subdued but activity
levels are starting to improve. Given the long lead times involved
in the construction industry, we are not expecting a sudden
increase in sales but we believe the Group can continue to take
market share and we remain committed to our goal of building a
market leading Commercial business over the medium term.
The combination of strong trading and receipt of the proceeds
from the sale and lease back of the Group's head office and
warehouse buildings at Enderby in June, have had a material impact
on the Group's liquidity position. The Group currently has c.GBP9
million of net cash and available cash headroom of GBP58 million
within its financing facilities.
While recent trading has been extremely robust, uncertainty
related to COVID-19 persists and it is unusually difficult to
assess the outlook beyond the short term. However, the performance
of the business through the pandemic period has been significantly
better than initial expectations and this, together with the
strength of its management team and balance sheet, gives the Board
confidence that the business remains well positioned and capable of
strengthening its market leadership position as its markets
recover.
Rob Parker, Chief Executive, said: "I am pleased with how well
the business has navigated the crisis to date and feel that we are
well positioned for whatever comes next. Our colleagues have
responded brilliantly over the last five months and I would like to
once again place on record my thanks for their dedication and
endeavour. I am also very grateful to our loyal customers who have
continued to support us during this period.
"Our response to the pandemic has strengthened the business and
fundamentally improved our liquidity position, providing further
flexibility and putting us in a strong position both to benefit
from the recovery in our markets and to meet any future
challenges."
1 Orders received from customers which are in process but not
yet fulfilled
2 Adjusted profit before tax excludes items which are one off in
nature or can fluctuate significantly from year to year (such as
some property related items - including IFRS16 adjustments)
- Ends -
Enquiries:
Topps Tiles Plc 0116 282 8000
Rob Parker, Chief Executive Officer
Citigate Dewe Rogerson
Kevin Smith 020 3926 8509
Nick Hayns 020 3926 8503
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 351 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
http://www.toppstilesplc.com/
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END
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