Topps Tiles has reported significant financial challenges due to a decline in market demand.
- The company experienced a pre-tax loss of £16.2 million for the year ending 28 September 2024.
- A substantial non-cash impairment, largely involving right-of-use assets, contributed to this deficit.
- Trade sales remain stronger than sales to homeowners, increasing their share of total sales.
- Despite current obstacles, the company is optimistic about its strategic growth and future market recovery.
Topps Tiles has encountered financial difficulties in the past fiscal year, reporting a pre-tax loss of £16.2 million. This marks a significant decline from a profit of £6.8 million the previous year. This downturn is largely attributed to a challenging market environment where sales volumes have not returned to pre-pandemic levels.
The company has identified a £19.4 million non-cash impairment as the primary factor contributing to its statutory loss. This figure includes £3.1 million related to acquiring the remaining shares of Pro Tiler. Group revenue also saw a 4.1% decrease, amounting to £251.8 million, with like-for-like sales at Topps falling by 9.1% to £210.4 million.
Sales to trade customers were notably strong, surpassing those made to homeowners. Consequently, the trade segment grew from 59.6% of Topps’ sales in 2023 to 62.8% in 2024. This suggests a shift in focus or strength in serving trade clients compared to the general consumer market.
Chief Executive Rob Parker commented on the situation, acknowledging the difficult conditions for repair, maintenance, and improvement sectors over the year, particularly for high-value purchases. He noted, “Whilst Topps Group is not immune to these pressures, our growth strategy has served us well and we have continued to outperform the wider tile market.”
The beginning of the new financial year shows a modest recovery in sales, supported by weaker previous year comparisons and strong trade offerings. However, Parker cautioned that forward market indicators, particularly consumer confidence, remain mixed. The company remains cautious, awaiting sustainable improvements in market metrics before expecting a definite consumer recovery.
Despite these challenges, Topps Tiles continues to make progress towards its ‘Mission 365’ strategic objectives. Parker expressed confidence in the medium-term outlook, emphasizing that their current strategic efforts are positioning the business well for future market volume recoveries.
Topps Tiles faces current market challenges, yet remains hopeful for recovery driven by strong trade sales and strategic initiatives.
