Interim Results

Topps Tiles PLC
16 January 2001


                                 Topps Tiles Plc

                      The UK's largest ceramic tile specialist

               Interim Results for the six months ended 2 December 2000


Highlights


*        Turnover up 24% to £37.465 million (1999: £30.315 million)

*        Profit before tax increased 24% to £5.022 million (1999: £4.055
         million)

*        Earnings per share growth of 20% to 8.05p (1999: 6.71p)

*        Interim net dividend declared of 1.15p (1999:  1.00p) an increase 
         of 15%

*        Like for like sales in the period increased 5.7%

*        13 new stores opened in the first half of the financial year

*        Like for like sales in the first six weeks of the second half up 9%


Commenting on the results, Barry Bester, Chief Executive said:

'We are delighted to announce strong first half profits of £5.022 million
despite our like-for-like sales being adversely affected by the fuel crisis
and the bad weather.  We are pleased to say that this appears to be a
temporary setback and like-for-like sales in the first six weeks of the second
half have recovered to 9%.'


For further information contact:
Barry Bester, Chief Executive                                 0802 273334
Ann-marie Wilkinson, Beattie Financial         0207 398 3300/07730 415019


Chairman and Chief Executive's Joint Statement

Financial Results

Financial highlights are as follows:


                                                 2000            1999
                                           Six months      Six months
                                                ended           ended
                                           2 December     27 November
                                                £'000           £'000    Change


Turnover                                       37,465          30,315      +24%
Profit before tax                               5,022           4,055      +24%
Earnings per share (pence)                      8.05p           6.71p      +20%
Interim net dividend per share (pence)          1.15p           1.00p      +15%



Chairman and Chief Executive's Joint Statement

We are pleased to announce excellent results with a 24% increase in profit
before tax for the first half of the current year to £5.022 million, from last
year's £4.055 million. Sales for the period at £37.465 million were also 24%
ahead of the same period last year and 5.7% on a like-for-like basis.

The compound effect of the fuel crisis in September and the recent extreme
weather conditions which caused flooding in some parts of the country had an
impact on like-for-like sales which, as we reported at our AGM in early
September, were 10% higher for the first thirteen weeks of trading in the
first half of the financial year.

Earnings per share amounted to 8.05p compared with 6.71p in 1999, an increase
of 20%.  The gross margin level was 55.0%, which was up from the prior year
end level of 54.6%.

Capital expenditure in the period amounted to £1.79 million, which included
freehold site expenditure of £0.3 million, new store fit-out costs of £0.8
million, existing store refit costs of £0.4 million and information technology
equipment costs of £0.2 million.  Cash balances at 2 December 2000 remained
positive at £4.10 million.

Long term bank loans amounted to £2.28 million.

The Group currently owns 11 freehold sites with a total net book value of £
3.62 million.


Dividend

The Board has declared an interim net dividend of 1.15p per share in respect
of the six months ended 2 December 2000, an increase of 15%.  The dividend
will be paid on 28 February 2001 to all shareholders on the register as at 2
February 2001.


Operational Review

We continued to grow the store portfolio during the period with 13 new stores
opened: eight Topps Tiles Stores and five Tile Clearing House Stores.  This
now brings the total number of stores to 140, comprising of 117 Topps Tiles
Stores and 23 Tile Clearing House Stores.  All new stores are performing well
and we are on course to achieve our planned target of 20 new stores for this
financial year.

Stock levels have reduced in the period to 184 days' cover from 192 days'
cover at the same period last year.

Operating costs in the period represented 41.3% of sales compared to 41.7% for
the same period last year.


Current Trading and Prospects

Trading in the first six weeks of the second half are encouraging, showing an
overall increase of 23% and a like-for-like increase of 9% compared with the
same period last year.

The outlook for the remainder of the year is positive in terms of our growing
share of the tile market and overall sales performance.  We continue to
benefit from a ready availability of good sites compatible with our store
criteria.

The strength of our format, our ability to maintain strong margins and our
tight cost management gives us confidence for the continued growth and success
of the business.


Consolidated Group Profit and Loss Account
For the six months ended 2 December 2000


                             Six months ended   Six months ended   Period ended
                              2 December 2000   27 November 1999    3 June 2000 
                                    Unaudited          Unaudited        Audited
                                        £'000              £'000          £'000
Turnover
Continuing operations                  37,465             30,315         62,614
Cost of Sales                         (16,842)           (13,492)       (28,443)
Gross profit                           20,623             16,823         34,171

Operating Expenses
 - employee profit sharing             (1,057)              (812)        (1,959)
 - other operating expenses           (14,430)           (11,836)       (23,963)
Operating profit
 - before exceptional costs             5,136              4,175          8,935
 - exceptional costs                                                       (686)
 - after exceptional costs              5,136              4,175          8,249
Interest receivable and similar income     55                 11             17
Interest payable and similar charges     (169)              (131)          (248)
Profit on ordinary activities before 
 taxation                               5,022              4,055          8,018
Tax on profit on ordinary activities   (1,507)            (1,216)        (2,487)
Profit on ordinary activities after 
 taxation                               3,515              2,839          5,531
Dividends                                (520)              (424)        (1,844)
Transfer to reserves                    2,995              2,415          3,687

Earnings per share -     - Basic         8.05p              6.71p         13.05p
                         - Diluted       7.83p              6.36p         12.46p


Topps Tiles has no recognised gains or losses in the period
other than those reflected in the profit and loss account.


Consolidated Group Balance Sheet
as at 2 December 2000


                                           2 December    27 November     3 June 
                                                 2000           1999       2000
                                            Unaudited      Unaudited    Audited
                                                £'000          £'000      £'000
Fixed assets
Goodwill                                          341            162        320
Tangible assets                                13,930         11,137     12,918
                                               14,271         11,299     13,238

Current assets
Stocks                                         15,997         14,194     15,948
Debtors                                         2,986          2,225      2,945
Cash at bank and in hand                        4,102          1,551        435
                                               23,085         17,970     19,328

Creditors:
Amounts falling due within one year          (17,379)       (14,433)   (16,003)
Net current assets                              5,706          3,537      3,325
Total assets less current liabilities          19,977         14,836     16,563
Creditors:
Amounts falling due after more than one       (1,965)        (2,679)    (2,716)
year


Provisions for liabilities and charges          (665)          (295)      (665)
Net assets                                     17,347         11,862     13,182


Capital and reserves
Called-up share capital                         5,599          5,298      5,309
Share premium account                             992             75        112
Merger reserve                                  (399)          (399)      (399)
Profit and loss account
- brought forward                               8,160          4,473      4,473
- current year                                  2,995          2,415      3,687
Equity shareholders' funds                     17,347         11,862     13,182


Consolidated Group Cashflow Statement
as at 2 December 2000
                                                         
                                                  2 December 27 November  3 June
                                                        2000       1999     2000
                                                   Unaudited  Unaudited  Audited
                                                       £'000      £'000    £'000
Net cashflow from operating activities                 7,673      4,384    7,505
Returns on investment and servicing
of finance                                             (114)      (120)    (223)
Taxation                                             (1,076)         0   (1,754)
Capital expenditure                                  (1,701)    (2,393)  (4,147)
Acquisitions and disposals                                0          0     (219)
Equity dividends paid                                (1,419)    (1,059)  (1,489)
                                                      3,363        812     (327)
Financing                                               304         29       52
Increase / (decrease) in cash                         3,667        841     (275)

Reconciliation of operating profit to net cash
inflow from operating activities
Operating profit                                       5,136      4,175   8,249
Depreciation charges                                     690        477   1,070
Profit on disposal of fixed assets                      (31)          0    (463)
Goodwill amortisation                                      9          0      12
Increase in stocks                                      (49)      (909)  (2,663)
Increase in debtors                                     (41)      (472)  (1,006)
Increase in creditors                                  1,959      1,113   2,306 
                                                       7,673      4,384   7,505

Return on investments and servicing
of finance
Interest received                                         55         11      17
Interest paid                                          (166)      (125)    (303)
Interest element of hire purchase rentals                (7)        (6)      (8)
Interest capitalised                                      4          -       71
                                                       (114)      (120)    (223)

Capital expenditure
Payments to acquire tangible fixed assets            (1,791)    (2,428) (5,969)
Receipts from sales of tangible fixed assets             90         35   1,822
                                                     (1,701)    (2,393) (4,147)

Acquisitions and disposals
Acquisitions                                               0          0   (219)



Financing
Proceeds from issue of ordinary share capital          1,178        109     180
Expenses in connection with issue of
share capital                                            (8)          0     (23)
New loans                                                 0         154     762
Repayment of loans                                     (702)       (160)   (762)
Capital element of hire purchase rentals               (164)        (74)   (105)
                                                        304          29      52

Summary
Opening cash position                                    435        710     710
Movement                                               3,667        841    (275)
Closing cash position                                  4,102      1,551     435


Notes to the Accounts
For the six months ended 2 December 2000



1       Basis of preparation

(a)     The interim report was approved by the board on 15 January 2001.  The
        financial information for the six months ended 2 December 2000 and 
        similarly the financial information for the six months ended 27 November

        1999 have not been audited.  The financial information for the period 
        ended 3 June 2000 has been extracted from the audited financial 
        statements for that period. 

(b)     The financial information contained in the interim report does
        not constitute statutory accounts as defined in section 240 of the 
        Companies Act 1985.  Statutory accounts for the year ended 3 June 2000 
        incorporating an unqualified audit report, which did not contain 
        statements under section 237 (2) or (3) of the Companies Act 1985, have 
        been filed with the Registrar of Companies.

(c)     The financial information contained in this interim report has
        been prepared on the basis of the accounting policies set out in the 
        Group's statutory accounts for the period ended 3 June 2000.


2       Taxation

        Corporation Tax for the six months ended 2 December 2000 has been 
        provided for at the estimated effective rate of 30%.


3       Interim dividend

        An interim net dividend of 1.15 pence per Ordinary Share (1999: 1.00    
        pence) has been declared payable on 28 February 2001 to shareholders on 
        the register on 2 February 2001.


4       Earnings per share

(a)     Basic earnings per share for the six months ended 2 December 2000 have 
        been calculated on earnings (after the deduction of taxation) of 
        £3,515,000 (1999: £2,839,000) and on Ordinary Shares of 43,649,364 
        (1999: 42,293,782), being the weighted average of Ordinary Shares in 
        issue during the period.

(b)     Fully diluted earnings per share for the six months ended 2 December 
        2000 have been calculated on earnings (after the deduction of
        taxation) of £3,515,000 (1999: £2,839,000) and on Ordinary Shares of
        44,915,265 (1999: 44,640,954) being the weighted average of Ordinary 
        Shares and Share Options in issue during the period.


5       Copies of the interim results

        Copies of the interim results have been sent to shareholders, further 
        copies can be obtained from the Company's registered office at Rushworth

        House, Wilmslow Road, Handforth, Wilmslow, Cheshire, SK9 3HJ.  Details 
        are also available on our website: www.ToppsTiles.co.uk