Topps Tiles has plunged to a loss following weak sales as volumes remain “well below pre-pandemic levels”.
The tile specialist reported a pre-tax loss of £16.2m in the 52 weeks to 28 September, down from a profit of £6.8m the year before. However, on an adjusted basis, the retailer’s profit halved to £6.3m.
It attributed its statutory loss to a £19.4m non-cash impairment, primarily of right-of-use assets, with £3.1m relating to the purchase of remaining Pro Tiler shares.
Group revenue slipped 4.1% to £251.8m, driven by a 9.1% fall to £210.4m in like-for-likes at Topps.
The retailer noted that its sales to trade customers were “significantly stronger” than those to homeowners and, as a result, trade mix in Topps Tiles rose from 59.6% of sales in 2023 to 62.8% of sales in 2024.
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Chief executive Rob Parker said: “2024 has been a challenging year for repairs, maintenance and improvement 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.
“The start of the new financial year has seen a return to modest sales growth for the group, helped by weaker prior year comparatives and the continued strength of our trade offer.
“Whilst pleasing, the forward macro indicators for our market remain mixed, in particular weaker consumer confidence, and we need to see a sustained improvement in these metrics before we can be confident of a consumer recovery.
Parker added that the business had made “good progress” against its Mission 365 strategy, which sets revenue and profit medium-term goals.
He said 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”.
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