Q1 Trading Update

RNS Number : 2726B

Topps Tiles PLC

09 January 2018

 

9 January 2018

Topps Tiles Plc

Q1 Trading Update

Trading

Topps Tiles Plc (the "Group"), the UK's largest tile specialist, announces a trading update for the 13 week period ended 30 December 2017.

Like-for-like revenues for the first 13 weeks of the current financial year increased by 3.4% (2017: +0.3%).

The Group ended the period with 371 stores, having closed a net one store during the quarter.

Strategic Progress

We continue to invest in the business and to make good progress with our core strategy of "Out-Specialising the Specialists" to extend our market leading position in the domestic tile market.  Specific strategic progress in the period includes:

·	Differentiated products now account for almost 90% of our tile sales and are key to our ability to generate market leading gross margins.
·	Further competitive advantage created through investment in our inspirational service offering. Record customer service scores and levels of conversion underpinned a strong outperformance of the UK tile market during the period.
·	We have completed the refit of eight pilot stores ahead of our two year all store improvement programme.

In parallel with our growth strategy for our core domestic business, we are progressing the development of a new division targeting the commercial tile market. Building on the acquisition of Parkside Ceramics in September 2017, we are investing in the capabilities necessary for future growth. The Parkside commercial offer was launched at the 100% Design trade show in October and our first commercial showroom opened in Chelsea in December.

Matthew Williams, Chief Executive Officer, said: "The Group has made an encouraging start to the new financial year with like-for-like sales in Q1 up by 3.4%.  We believe this represents an outperformance of the overall tile market in the period, reflecting the continued success of our strategy of "Out-specialising the Specialists" and some further measured investment in both our trade and retail offer during the period.  Our expansion into the commercial market is also progressing to plan, with the first investments made in the Parkside business adding new capabilities and resource.  While we are pleased with the like-for-like sales growth achieved in Q1, we are retaining our prudent view of market conditions for the year ahead."

Topps Tiles will hold its Annual General Meeting on 31 January 2018.  In line with previous practice, no further update on trading will be given at this point.

The Company will announce a trading update for the 26 weeks ended 31 March 2018 on 4 April 2018.

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Enquiries:

Topps Tiles Plc	0116 282 8000
Matthew Williams, Chief Executive Officer
Rob Parker, Chief Financial Officer
Citigate Dewe Rogerson	020 7638 9571
Kevin Smith / Nick Hayns

Note to editors

Topps Tiles Plc is the UK's largest specialist supplier of tiles and associated tools and accessories, targeting the UK domestic refurbishment market and serving a retail and trade customer base from 371 stores nationwide.

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.

In 2017 Topps identified the UK commercial tile market, which is almost as large as the domestic market but which the Group had only previously served in a limited way, as an important source of future growth.  Parkside Ceramics, a small commercial tile specialist, was acquired in September 2017 and has formed the basis for the Group's new commercial tile division.

For further information, please visit http://www.toppstilesplc.com/

 

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