Q3 Trading Update

RNS Number : 4659T

Topps Tiles PLC

04 July 2018

 

4 July 2018

Topps Tiles Plc

Q3 Trading Update

Trading

Topps Tiles Plc (the "Group"), the UK's largest tile specialist, announces a trading update for the 13 week period ending 1 July 2018.

Like-for-like revenues for the 13 week period decreased by 2.3%.

The Group is now trading from 375 stores (2017: 367 stores), having opened two and closed three stores during the period.

Trading over the third quarter has been reflective of a weaker consumer environment.  Against this background, we believe that we continue to outperform the overall tile market and we are maintaining our focus on tight cost control and strong underlying cash generation.

During the period we completed a refinancing of our loan facility, putting in place a new three year committed facility with our existing lenders on similar commercial terms.  The facility comprises a £35 million revolving credit facility with a £15 million accordion.

Analysis of LFL sales by quarter

	Q1	Q2	First Half	Q3
FY 2018	+3.4%	-2.2%	+0.6%	-2.3%
FY 2017	+0.3%	-4.1%	-1.9%	-4.7%

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 UK tile market.  Specific strategic progress in the period includes:

 

·	Range - our iterative cycle of change and focus on in-house development continues to allow us to deliver a differentiated and exclusive product range to our Retail and Commercial customers.  During the period we launched extensions to our Statements™ range, enabling customers to use these tiles outdoors, extended our trade brands and listed exclusive product collections into our commercial business, Parkside.  We have launched over 20 new ranges this year.
·	Retail - Topps Tiles continues to perform resiliently in a challenging market.  Our response to these challenging conditions has been to continue to invest in our customer offer - in particular through retail promotional activity and continued price leadership in the trade segment.  We have continued our all store investment programme and we now have 140 stores with the latest merchandising treatments.
·	Commercial - We are continuing our expansion into the commercial segment of the tile market through our Parkside business.  During the period we exhibited at Clerkenwell Design Week for the first time via a pop-up container stand, receiving very positive feedback from commercial customers and generating a pipeline of new leads for future projects.  Parkside also continued to bolster its sales team, with the recruitment of a new team of three sales people during the period.

Matthew Williams, Chief Executive Officer, said: "The trading environment remained challenging during the third quarter but we are pleased with the resilience of our performance which we believe remains ahead of the overall tile market.  Our business has a market leading position, remains well-invested and is in a strong position to capitalise on future growth opportunities as they arise.  We have approximately doubled the size of our addressable market through our expansion into the commercial tile market segment and are focused on leveraging our specialism and competitive advantage across both retail and commercial channels."

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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 products, targeting the UK domestic refurbishment and commercial market.

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, please visit http://www.toppstilesplc.com

 

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