Topps Tiles, the Leicester-based tile specialist, has a seen a slip in its results.
According to unaudited consolidated interim financial results for the 26 weeks ended 30 March 2024, group revenue was £122.8 million, down from £130.3 million in the same period last year, driven by lower footfall in Topps Tiles.
Meanwhile, the firm fell to a loss before tax of £1.5 million, dropping from a pre-tax profit of £1.7 million last year.
The results come as Topps Tiles sets new financial goals and an updated strategy for growth in the medium term.
Rob Parker, Chief Executive, said: “Trading conditions in the first half have been challenging in a tile market which is down 20% on 2019. Against this backdrop, we are continuing to take market share, our online pure play businesses are growing strongly and the Group remains in a robust financial position.
“Lead indicators of market activity such as mortgage approvals, consumer confidence and smaller ticket DIY spend are improving, and while we are yet to see this feed through into our customer’s spending patterns, as market leader Topps Group remains well-positioned for recovery.
“Notwithstanding the challenges of current market conditions, we believe that Topps Group has a substantial opportunity to increase sales and profitability over the medium term through our new growth strategy of Mission 365.
“Mission 365 includes the development of new digital platforms for Topps Tiles trade customers; an increase in our addressable market of 75% by entering new product areas adjacent to our core tile specialism; a drive for accelerated growth in B2B markets through a more co-ordinated Group-wide approach; and continued momentum in our high growth online pure play businesses, Pro-Tiler and Tile Warehouse.
“Together these initiatives represent an opportunity to grow sales to £365 million over the medium term, while delivering profit before tax margins in the range of 8-10%.”
