Topps Tiles warns over profits amid sales slump
The group expects revenue to fall from £215 million to £211.6 million after like-for-like sales declined 2.9% over the year.
Topps Tiles has reported a slump in full-year sales and warned over profits as a slowing housing market and a faltering economy continue to hit the firm.
The group expects revenue for the 52 weeks to September 30 to fall from £215 million to £211.6 million after like-for-like sales declined 2.9% over the year.
For the final quarter of the year, like-for-like revenues decreased 3% as Topps pointed to “challenging” market conditions.
As a result, the firm said that it expects profits to come in at the lower end of market expectations.
Chief executive Matthew Williams said: “The tougher market conditions we first highlighted in Q2 continued into the final quarter and, as a result, we are taking a prudent view on market conditions for the year ahead.”
Last year, the firm notched up comparable sales growth of 4.2%, when housing transactions were on the up ahead of stamp duty changes which came into effect in April 2016.
It has since pointed to a slowing housing market and a more “challenging macro-economic environment”, which have impacted its performance.
But Mr Williams concluded on an upbeat note: “We remain focused on our strategy of ‘Out Specialising the Specialists’ and are beginning to gain traction with a number of new initiatives.
“We have made progress in the commercial tile market, completing a small acquisition during the period and building more commercial capability internally.
“We will update shareholders on this initiative in more detail at the time of our full-year results in November.”