A leading British tiling company recently 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. In response, the company, Topps Tiles' largest shareholder has urged the board to restructure its senior management and strategy, citing a series of 'costly blunders', the Times reports.
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Piotr Lipko, managing director of MS Galleon, which owns a 29.9% stake, wrote to the company's chairman, Paul Forman, accusing the management of failing to adjust to evolving retail trends. Lipko criticised the acquisition of CTD Tiles as 'irrational' and damaging to the company, claiming that Topps overpaid and neglected proper due diligence.
In response, Topps Tiles defended the acquisition, asserting that thorough due diligence was conducted and that the CTD deal would drive significant growth. Chairman Forman emphasised that the company regularly engages with its larger shareholders and continues to update them on its strategy. He reiterated that the company's recent performance shows growth and market share expansion, even amid challenging conditions. Digital expansion remains a key focus for future growth.
Source: www.thetimes.com