Profits dive at Topps
RETAILER Topps Tiles has seen profits almost wiped out as it continues to be hit by the dramatic fall in consumer confidence.
The Cheadle Hulme-based group also axed its interim dividend as it looks to reduce its £85m debt pile and “improve financial flexibility”.
In the six months to March 28, profit before tax fell to £600,000 from £15.8m last time. Turnover also fell from £106.3m in 2008 to £92.1m.
Topps Tiles said its primary objective is to manage its cost base which has seen the group reduce its workforce by 8.5% and it now employs 1,353 staff compared to 1,478 in the same period last year.
It has also slashed its marketing budget and ended its TV campaign as well as improving its logistics infrastructure.
The group’s Dutch business has experienced challenging trading and losses widened from £100,000 to £600,000, and Topps Tiles said it is “reviewing the business very closely”.
Chief executive Matthew Williams said while there are key uncertainties in the economic outlook with ongoing pressure on consumer spending levels, the group has continued to deliver its financial objective of reducing costs and maximising cash generation.
He added: “The business continues to demonstrate its resilience during a challenging trading period. We are delivering on our key financial and operational objectives and as the market leading brand we are confident that we will benefit as competitors withdraw and conditions improve.”
