Interim Results - Pre-tax Profit Up 58%

Topps Tiles PLC
18 January 2000

                              Topps Tiles Plc
                                       
Topps Tiles Plc, the UK's leading specialist tile retailer, today reports its
interim results for the six months ended 27 November 1999.


Highlights

*  Turnover up 56% to £30.315 million (1998: £19.371 million)

*  Profit before tax increased 58% to £4.055 million (1998: £2.564 million)

*  Earnings per share growth of 52% to 6.71p (1998: 4.42p)

*  Interim net dividend declared of 1.00p (1998: 0.72p)

*  Like for like sales in the period increased 10%

*  Gross margin of 55.5% (1998: 53.2%)

*  12 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 11%

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

'We are delighted to report a record performance for the first half of the
financial year and with current trading very strong the prospects for the
second half are very encouraging.'
                                       

Enquiries:

Barry Bester, Chief Executive             0171 377 6677 (for today only)
Ann-marie Wilkinson, Biddick Associates   0171 377 6677


Chairman and Chief Executive's Joint Statement

We are pleased to announce excellent first half results with record profits in
the six months ended 27 November 1999.

Financial highlights as follows:
                                 1999         1998        
                            Six months  Six months  
                                 ended       ended       
                           27 November 28 November 
                                 £'000       £'000  Change
                            
Turnover                        30,315      19,371    +56%
                                                    
Profit before tax                4,055       2,564    +58%
                                                    
Earnings per share (pence)       6.71p      4.42p*    +52%
                                                    
Interim net dividend per         
share (pence)                    1.00p      0.72p*    +39%
*adjusted for share split

We have achieved a record profit before tax for the first half of the current
year of £4.055 million, an increase of 58% over the same period last year. We
are now starting to benefit from profit contributions from the now fully
integrated ex-Tile City stores (acquired December 1998). We achieved sales in
the period of £30.315 million, representing an overall increase of 56%
compared to last year and 10% on a like for like basis.

Earnings per share amounted to 6.71p compared with 4.42p in 1998, an
improvement of 52%. We have improved our gross margin from 53.2% to 55.5%,
reflecting our decision to phase out the bathroom products and concentrate on
the core tile offering in all our stores.

Cash balances at 27 November were £1.55 million. This has been achieved after
capital expenditure in the period of £2.4 million, which included freehold
site expenditure of £0.4 million, new stores refit costs of £0.9 million and
existing stores refurbishment costs of £1.1million (including the ex-Tile City
stores).

Long term bank loans amounted to £2.98 million.

The Group currently owns 12 freehold sites with a total net book value of
£3.5million.

Dividend
The Board has declared an interim net dividend of 1.00p per Ordinary Share in
respect of the six months ended 27 November 1999. The dividend is payable on
29 February 2000 to all shareholders on the register as at 11 February 2000.

Operational Review
We are well on our way to achieving our store opening target for the full year
of a net total of 15 additional outlets. We have opened 12 new stores in the
period and closed three. Of the new stores opened, 11 were Topps Tiles stores
and we have also opened one Tile Clearing House store, our separate discount
brand. We continue to benefit from a ready availability of good sites
compatible with our store criteria.

Stock levels have reduced significantly from the May 1999 year end level of
254 days cover to 192 days cover which reflects the increased turnover being
generated from the ex-Tile City stores.

Operating costs in the period represented 41.7% of sales which has reduced
from 44.1% in the second half of last year when the ex-Tile City stores were
acquired.

Current Trading and Prospects
Trading in the first six weeks of the second half of the year is strong
showing an overall increase of 46% and a like-for-like increase of 11%
compared with the same period last year.

The tile and flooring market continues to grow steadily and has been boosted
by the current strength of the DIY/housing market and increased media
attention through television programmes such as Changing Rooms, Home Front and
Better Homes.

The fundamental strengths of our business and our commitment to providing high
levels of choice, value and customer service will continue to enable us to
gain further market share.  We have made a strong start to the year and
prospects for the second half are very encouraging.


Barry Bester        Chief Executive
Stuart Williams     Chairman


Consolidated Group Profit and Loss Account
For the six months ended 27 November 1999
                                                         
                        Six months  Six months    52 weeks
                             ended       ended       ended
                       27 Nov 1999 28 Nov 1998 29 May 1999
                         Unaudited   Unaudited     Audited
                             £'000       £'000       £'000
Turnover                                                 
Continuing operations       30,315      19,371      42,996
Cost of sales              (13,492)     (9,065)    (19,121)
___________________________________________________________
Gross profit                16,823      10,306      23,875
                                                         
Operating expenses                                       
 - employee profit sharing    (812)       (580)     (1,458)
 - other  operating 
   expenses                (11,836)     (7,018)    (16,326)
 
___________________________________________________________                   
Operating profit             4,175       2,708       6,091
                                                         
Interest receivable and         
similar income                  11          29          50
Interest payable and         
similar charges               (131)       (173)       (313)
___________________________________________________________
Profit on ordinary                                      
activities before taxation   4,055       2,564       5,828
                                                       
Tax on profit on           
ordinary activities         (1,216)       (794)     (1,792)
___________________________________________________________
Profit on ordinary                                       
activities after taxation    2,839       1,770       4,036
                                                         
Dividends                     (424)       (289)     (1,348)
___________________________________________________________
Transfer to reserves          2,415      1,481       2,688
                                                         
Earnings per share                                       
-Basic                        6.71p      4.42p*      9.89p
-Diluted                      6.36p      4.20p*      9.35p
*adjusted for share split

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 27 November 1999
                             27 Nov 1999 28 Nov 1998 29 May 1999      
                               Unaudited   Unaudited     Audited
                                   £'000       £'000       £'000
                                                                
Fixed assets                                                    
Goodwill                             162           -         113
Tangible assets                   11,137       6,739       9,270
_________________________________________________________________
                                  11,299       6,739       9,383
Current assets                                                  
Stocks                            14,194       9,608      13,285
Debtors                            2,225       1,390       1,753
Cash at bank and in hand           1,551       1,706         710
_________________________________________________________________
                                  17,970      12,704      15,748
                                                                
Creditors:  Amounts   falling   
due within one year              (14,433)     (9,953)    (12,813)
_________________________________________________________________
Net current assets                 3,537       2,751       2,935
_________________________________________________________________
Total   assets  less  current     
liabilities                       14,836       9,490      12,318
Creditors:  Amounts   falling    
due after more than one year      (2,679)     (3,694)     (2,685)
Provisions   for  liabilities      
and charges                         (295)       (146)       (295)
_________________________________________________________________
Net assets                        11,862       5,650       9,338
                                                                
Capital and reserves                                            
Called-up share capital            5,298       5,014       5,264
Share premium account                 75      12,686           -
Merger reserve                      (399)       (399)       (399)
Goodwill write-off                     -     (15,080)          -
Profit and loss account                                         
- brought forward                  4,473       1,948       1,785
- current year                     2,415       1,481       2,688
_________________________________________________________________
Equity shareholders' funds        11,862       5,650       9,338





Consolidated Group Cashflow Statement
For the six months ended 27 November 1999
                              
                               Six months  Six months    52 weeks
                                    ended       ended       ended 
                              27 Nov 1999 28 Nov 1998 29 May 1999
                                Unaudited   Unaudited     Audited
                                    £'000       £'000       £'000
                                                       
Net cashflow inflow from            
operating activities                4,384       2,491       4,075
Return on investments and           
servicing of finance                 (120)       (144)       (263)
Taxation                                -           -      (1,462)
Capital expenditure                (2,393)     (1,328)     (3,087)
Acquisitions and disposals              -           -      (1,069)
Equity dividends paid              (1,059)       (702)       (991)
__________________________________________________________________
                                      812         317      (2,797)
                                                                 
Financing                              29         100       2,218
__________________________________________________________________
Increase in cash                      841         417        (579)
                                                                 
Reconciliation of operating                                      
profit to net cash inflow from
operating activities
Operating profit                    4,175       2,708       6,091
Depreciation charges                  477         185         600
Profit on disposal of fixed assets      -           -        (237)
Increase in stocks                   (909)     (1,496)     (5,173)
Increase in debtors                  (472)       (365)     (1,016)
Increase in creditors               1,113       1,459       3,810
__________________________________________________________________
                                    4,384       2,491       4,075
Returns on investments and                                       
servicing of finance
Interest received                      11          29          50
Interest paid                        (125)       (165)       (293)
Interest element of hire              
purchase rentals                       (6)         (8)        (20)
__________________________________________________________________
                                     (120)       (144)       (263)
                                                                 
Capital expenditure                                              
Payments to acquire tangible      
fixed assets                       (2,428)     (1,335)     (4,926)
Receipts from sales of                 
tangible fixed assets                  35           7       1,839
__________________________________________________________________
                                   (2,393)     (1,328)     (3,087)
Acquisitions and disposals                                       
__________________________________________________________________
Acquisitions                            -           -      (1,069)
                                                                 
Financing                                                        
Proceeds from issue of                
ordinary share capital                109           4       2,560
Expenses in connection with            
issue of share capital                  -          (1)        (76)
New Loans                             154         158           -
Repayment of loans                   (160)        (81)       (166)
New hire purchase agreements            -         121           -
Capital element of hire              
purchase rentals                      (74)       (101)       (100)
__________________________________________________________________
                                       29         100       2,218
Summary                                                          
Opening cash position                 710       1,289       1,289
Movement                              841         417        (579)
__________________________________________________________________
Closing cash position               1,551       1,706         710



Notes to the Accounts

For the six months ended 27 November 1999

1 Basis of preparation

a) The interim report was approved by the board on 17 January 2000. The
financial information for the six months ended 27 November 1999 and similarly
the financial information for the six months ended 28 November 1998 have not
been audited. The financial information for the year ended 29 May 1999 has
been extracted from the audited financial statements for that year.

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 29 May 1999 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 year ended 29 May 1999.

2 Taxation

Corporation Tax for the six months ended 27 November 1999 has been provided
for at the estimated effective rate of 30%.

3 Year 2000

Topps Tiles Plc has an established programme to ensure that the Group's
business systems are millennium compliant. The issue is being given a high
priority by management. All internal computer systems have been tested and are
compliant.

4 Interim dividend

An interim net dividend of 1.00 pence per Ordinary Share (1998: 0.72 pence)
has been declared payable on 29 February 2000 to shareholders on the register
on 11 February 2000.

5 Earnings per share

Basic earnings per share for the six months ended 27 November 1999 have been
calculated on earnings (after the deduction of taxation) of £2,839,000 (1998:
£1,770,000) and on Ordinary Shares of 42,293,782 (1998: 40,090,016), being the
weighted average of Ordinary Shares in issue during the period.  Fully diluted
earnings per share for the six months ended 27 November 1999 have been
calculated on earnings (after the deduction of taxation) of £2,839,000 (1998:
£1,770,000) and on Ordinary Shares of 44,640,954 (1998: 42,124,628) being the
weighted average of Ordinary Shares and Share Options in issue during the
period.

6 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 Earl  Road, Stanley
Green Trading Estate, Cheadle Hulme, Cheshire, SK8 6PT. Details are also
available on our Website: www.toppstiles.co.uk.