Topps Tiles hit by weakness in home repair and improvements market
Topps Tiles has reported a decline in full year revenue and profit after facing a challenging repairs, maintenance and home improvement (RMI) market.
Group revenue fell by 4.1% to £251.8 million in the 52 weeks to 28 September while adjusted pre-tax profit declined to £6.3 million from £12.5 million in the prior year.
In its annual results, Topps Tiles said a period of strong growth during the two years after the pandemic had been followed by the start of a market decline in 2023 which accelerated in 2024.
Rob Parker, Topps Tiles chief executive, said: “2024 has been a challenging year for RMI and especially bigger ticket spend. In the tile market, volumes remain well below pre-pandemic levels. Whilst Topps Group is not immune to these pressures, our growth strategy has served us well and we have continued to outperform the wider tile market.
“Mission 365, which sets ambitious revenue and profit medium-term goals, has focused the business around key areas of growth and we have delivered good progress against these over the second half – notably our trade digital offer, our plans to significantly expand our addressable market into hard surface coverings, trade business to business opportunities with the acquisition of CTD Tiles and the strong growth in online pureplay.”
Topps Tiles said group sales returned to growth in the first eight weeks of its new financial year, edging up 1.2% excluding CTD Tiles.
Meanwhile, like-for-like sales were down 0.4% year-on-year in the period
The retailer said it will be facing additional cost headwinds from increases in National Living Wage and National Insurance contributions from 25 April.
Looking ahead, Palmer added: “The robust strategic progress being made now to position the business for the future leaves us well-placed for a recovery in market volumes and underpins our confidence in the medium term outlook.”
