Topps Tiles swings to profit on back of record revenue
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Topps Tiles, the Leicester-based retailer, has bounced back to profit after delivering a record year of revenue despite a quarter of the year including trading restrictions and a lockdown.
Posting its annual results for the 53 weeks to October, the group reported an 18.3% year-on-year rise in revenue of £228m, up from £192.8m.
Meanwhile, profit before tax came in at £14.3m, up from a loss of £9.8m the year before.
Retail like-for-like sales were up 19.6% despite trade restrictions throughout Q2 while Topps said gross margins of 57.3% (FY20 58.5%), reflected increased investment into value and higher shipping costs.
The company saw a strong recovery in adjusted profit before tax to £15.3m, up from £3.6m.
Rob Parker, chief executive, said: “Our full year results demonstrate the strength of our position as the UK’s leading tile specialist and the potential of the business when it has been able to trade without restriction. Despite significant disruption for a three month period, during which our stores were unable to welcome homeowners, we delivered record revenues for the year.
“We believe this performance underlines the strength of our strategy and the success of new initiatives including the expansion of our value ranges and the introduction of innovative new products. The successful development of our digital offer during the year has been particularly pleasing and we have plans in place to expand this further in 2022.
“Trading in the initial weeks of the new financial year has been robust with two-year retail like-for-like sales growth of 18.4%. While trading headwinds are likely to continue over the short term, we are confident in our strategy and our ability to deliver sustainable long term growth.”