A leading British tiling company has reported a pre-tax loss of £16.2m for the year ending 28 September, a sharp contrast to the £6.8m profit recorded the previous year.
The company, Topps Tiles' adjusted profit also declined significantly, falling to £6.3m as sales remained weak, and market conditions continued to struggle below pre-pandemic levels.
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The loss was primarily driven by a £19.4m non-cash impairment, largely related to right-of-use assets, alongside £3.1m linked to the acquisition of remaining Pro Tiler shares. Group revenue dropped 4.1% to £251.8m, with like-for-like sales at Topps Tiles declining 9.1% to £210.4m.
Trade customer sales showed resilience, outperforming homeowner sales and raising the trade sales mix from 59.6% in 2023 to 62.8% in 2024.
CEO Rob Parker acknowledged the challenging environment in the repairs, maintenance, and improvement sectors, particularly for high-value projects, citing weak consumer confidence and broader economic pressures. Nevertheless, he noted that Topps Tiles had outperformed the wider tile market, supported by its growth strategy.
The start of the new financial year has brought modest sales growth, driven by weaker comparatives and the ongoing strength of trade offerings. However, Parker cautioned that mixed macroeconomic indicators and fragile consumer confidence remain obstacles.
Despite current challenges, Parker highlighted progress on the Mission 365 strategy, which focuses on medium-term revenue and profit goals.
Source: www.retailgazette.co.uk