Topps Tiles PLC First Half Trading Update (0266U)
31 Marzo 2021 - 8:00AM
UK Regulatory
TIDMTPT
RNS Number : 0266U
Topps Tiles PLC
31 March 2021
31 March 2021
Topps Tiles Plc
First Half Trading Update
Resilient performance against a challenging backdrop
Topps Tiles Plc ("Topps" or the "Group"), the UK's leading tile
specialist, announces a trading update for the 26 week period ended
27 March 2021.
Total revenues for the 26 week period were GBP103.6 million
(2020: GBP106.2 million), including Retail like-for-like growth
over the period of 2.0%.
Retail
As announced in our trading update in early January, Retail
like-for-like sales increased by 19.9% in the first 13 weeks of the
current financial year, with good growth in sales across both of
our main customer groups, professional fitters and homeowners, and
margins in line with expectations.
The additional trading restrictions imposed during the current
lockdown, including the closure of stores to retail customers,
significantly impacted sales and margins in the second quarter.
Revenues from homeowners were particularly impacted, contributing
to an overall reduction in like-for-like sales of 17.3% in the
second quarter. Trade sales are transacted at lower gross margins
than sales to homeowners and there are additional costs associated
with higher levels of delivery, so we expect second quarter gross
margins to be lower than in the first quarter, as highlighted in
our January trading update.
As trading restrictions lift by the middle of April, we expect a
sharp increase in sales, with margins recovering to more normal
levels. This view is underpinned by the Group's strong trading
performance following the end of the first lock-down last
summer.
Retail Q1 Q2 Q3 Q4 FY
LFLs
FY 2021 +19.9% (17.3%)
------- -------- -------- ------- --------
FY 2020 (5.4%) (6.8%) (52.7%) +16.5% (12.5%)
------- -------- -------- ------- --------
Commercial
Within the Commercial sector, some market sectors have also been
significantly affected by Covid-19, with particular impacts on the
restaurants, bars and leisure areas. As such, sales in the first
half were down 10% year on year, representing a robust performance
in difficult market. However, forward indicators are positive, with
firm orders in hand increasing consistently over the trading
period, and we expect to make good progress in the second half as
the economy continues to unlock.
Rob Parker, CEO, said:
"Our revenues for the first half reflect a very strong first
quarter followed by a period over the majority of the second
quarter when sales, particularly to homeowners, were significantly
impacted by the trading restrictions imposed on our stores during
the third national lockdown. The Group adapted to the changed
environment swiftly and effectively, producing a resilient
performance in the circumstances.
We are looking forward to the lifting of lockdown restrictions
in April and are concentrating on being well prepared for the
return of all customers to our stores. We have a strong balance
sheet, are debt-free, and are well positioned for growth this
financial year as we move towards our goal of '1 in 5 by
2025'*."
The Group will announce its Half Year Results for the period on
18 May 2021.
* Refers to Topps' goal of accounting for GBP1 in every GBP5
spent on tiles and associated products in the UK by 2025, thereby
increasing its market share to 20% from approximately 17% at
present.
For further information please contact:
Topps Tiles Plc
Rob Parker, CEO
Stephen Hopson, CFO 0116 282 8000
Citigate Dewe Rogerson
Kevin Smith
Elizabeth Kittle 020 7638 9571
Notes to editors
Topps Tiles Plc is the UK's largest specialist supplier of tiles
and associated products, targeting the UK domestic refurbishment
and commercial market and serving a retail and trade customer base
from 331 nationwide Retail stores, 4 Commercial showrooms and three
trading websites: www.toppstiles.co.uk , www.parkside.co.uk and
www.stratatiles.co.uk .
Since opening its first store in 1963, Topps has maintained a
simple operating philosophy -- inspiring customers with unrivalled
product choice and providing exceptional levels of customer
service. For further information on the Group, please visit
http://www.toppstilesplc.com/
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