Leicestershire’s Topps Tiles has witnessed “another year of strategic progress.” However at the start of the new financial year, “trading conditions have become more challenging.”
According to the firm’s annual financial results for the 52 weeks ended 28 September 2019, group revenue has risen to £219.2m from £216.9m in 2018. Profit before tax meanwhile has decreased slightly from £12.7m in 2018 to £12.5m.
In the first 8 weeks of the new financial period, “in line with past experience,” consumer demand has weakened since the UK General Election was called. This has seen retail like-for-like revenues decrease by 7.2%. The company said that a reduction in political uncertainly will be key to the improvement of short term outlook.
Commenting on the results, Matthew Williams, CEO said: “This has been another year of strategic progress for Topps, with a resilient sales performance in our retail business and significant development in our commercial operations. In Retail, our strategy of ‘Out-specialising the Specialists’ enabled us to deliver like-for-like sales growth and further enhance our market-leading gross margins in tough market conditions. In Commercial, we saw significant year-on-year sales growth as we continue to invest in constructing a market-leader over the medium term.
“At the start of the new financial year, trading conditions have become more challenging, with consumer demand weakening further since the General Election was called in late October. Against this backdrop of heightened political and economic uncertainty, like-for-like sales in the first eight weeks have declined. Whilst we expect external events will continue to weigh on consumer confidence for the immediate future, we remain confident that our market-leading retail offer and growing commercial operations give us a strong platform from which to deliver sustainable growth over the medium and long term.”