Profits jump at buoyant Topps Tiles

TOPPS Tiles has increased its full-year dividend after achieving a 57% increase in pre-tax profits.

In the year to the end of September the retail chain made a profit of £16.7m, up from £10.6m, on sales of £195.2m, up 10%.

Like-for-like sales were up 8.1% and since the year end like-for-like sales have grown by 6.7%.

The Handforth-based retailer which trades from 336 stores nationwide increased its market share by 2% to 30.3% and pushed gross margins to 61%. The final dividend has been increased by 50% to 2.25p.

Chief executive Matthew Williams said: “Topps had an excellent year in 2013-14 as our consistent focus on taking profitable market share helped the group to significantly outperform the overall tile market and deliver robust increases in like-for-like sales, pre-tax profits and earnings per share. We are also delighted to be recommending to shareholders a 50% increase in full year dividend to 2.25p per share.

“Furthermore, we have made an encouraging start to the new financial year with like-for-like sales ahead by 6.7%. With a programme of initiatives to extend the appeal of the Topps brand well underway, we are confident that we will deliver further progress this financial year towards our goal of taking one third of the market.”

Net debt has been reduced to £30.5m from £36.6m.