Topps Tiles to stockpile products in case of Brexit disruption
The retailer’s profits declined in its full-year results.
Topps Tiles is stockpiling key products ahead of the UK’s exit from the European Union as it prepares for possible supply disruption.
The retailer said it would increase stock levels of “key selling lines” ahead of March 2019, echoing the likes of Premier Foods and Pets at Home which have also said they will store products in case of disruption.
It came as Topps Tiles unveiled a 25% decline in profits for the year to September 29, as it absorbed the costs of integrating its newly acquired commercial business.
Parkside, which the group acquired in November last year, made a loss of £1.1 million in the period and diluted margins.
Whilst retaining a cautious view on the outlook, we remain confident that our expansion into the commercial tile market, coupled with our market-leading retail operation, gives us a solid platform for future growth Matthew Williams, Topps Tiles chief executive
This trading performance is expected to continue into the next financial year while Topps Tiles invests more into its new addition before it becomes profitable.
Adjusted profit before tax, which excludes one-off and fluctuating costs, declined by 14% to £16 million.
Overall group revenue was 2.4% higher at £216.9 million.
Like-for-like sales have been negative in the first eight weeks of the current financial year versus tough comparatives.
But chief executive Matthew Williams said: “Whilst retaining a cautious view on the outlook, we remain confident that our expansion into the commercial tile market, coupled with our market-leading retail operation, gives us a solid platform for future growth.”
Shares in Topps Tiles were down more than 3% in early trading.