Sales surge at Topps but pre-tax profits dip
Leicester tile giant Topps Tiles has revealed it notched up record sales of £130.3m during the first half of 2023, with group gross profits also increasing slightly to £68.7m.
In a statement, Topps said the surge in sales, which represents a 9.3% improvement on the previous six months, was driven by “nationwide store coverage, world class customer service and strong omni-channel capability.”
However, the firm’s adjusted profits before tax were down by 38% to £4.4m “as previously guided”, following adverse exchange rate movements and the impact of inflation on operating expenses.
The success of Topps’ Online Pure Play brands and “exceptional sales growth” in its Pro Tiler Tools line contributed to the increase in overall sales.
Looking forward, Topps said “well-documented headwinds in supply chain, inflation and recruitment are now easing, strengthening our confidence in the gross margin and trading outlook for the second half.”
Topps CEO Rob Parker said: “As we mark our 60th anniversary, we are pleased to be reporting record first half revenue for the Topps Group, reflecting our successful development and diversification as we strengthen our position as the UK’s leading tile specialist. Our Topps Tiles brand delivered a further period of robust like-for-like sales growth, with Pro Tiler Tools achieving another exceptional performance, to maintain its strong track record since acquisition in 2022.
“As expected, our first half profitability reflects the impact of inflation year on year, including significantly increased energy costs, and a number of other one offs. These effects are now reducing or will reverse in full in the second half, underpinning our confidence in a much stronger profit performance in the balance of the year. Our strong trading, when combined with our successful strategy, world class customer service, leading product offer and strong balance sheet, gives us increasing confidence in our outlook. We remain confident that we are on track to hit our 20% market share target ahead of schedule.”
