Topps Tiles hails another year of record sales after pandemic DIY boom
Written by First Choice Radio on 5 October 2022
Topps Tiles has revealed a second record year for sales as it continued to bring in more customers after the pandemic home improvement boom.
The retailer said group sales were around £247 million over the past year, jumping by more than a 10th compared with the previous year.
Sales in the past three months were 4.3% higher than the same period a year ago, the company reported.
Average weekly sales at each Topps Tiles store leapt by a quarter compared with 2019, before the pandemic, which prompted locked down households to turn to DIY home improvements.
It has also seen its trade customer base grow by a fifth from 2015 to 2022, describing them as the “crucial link” to homeowner customers.
The group said its profits for the full year are expected to be towards the upper end of market expectations.
The consensus for the firm’s full year pre-tax profits is £14.6 million, but with a higher potential target of £15.4 million.
Topps Tiles chief executive Rob Parker said its strong balance sheet will help cushion the firm as it moves into a period of greater economic volatility.
In July, the group cautioned that it was battling against lower consumer confidence, supply chain issues and inflation.
But Mr Parker assured investors that the tiles specialist is aiming to reach a fifth of market share in just over two years.
He said: “The group has worked hard to achieve a strong balance sheet with positive net cash and this will serve us well as we move into a period of macroeconomic volatility, leading to a more uncertain environment for consumers.
“In this context, our 20% market share goal of ‘one in five by 2025’ and our growth strategy to deliver this will remain our primary focus, and we are confident that we will deliver against them both.”
Topps Tiles acquired a majority stake in digital tools business Pro Tiler in March and could take over the entire company’s shares by March 2024.
It has also moved to reach the commercial market through its specialist Parkside brand which has begun to break even in profits in the last three months, and is expected to boost the entire group’s profitability from the 2023 financial year.
Topps Tiles was hit hard by the third English lockdown in the first three months of 2021 but enjoyed a rebound after its stores reopened.
Published: by Radio NewsHub
