Topps Tiles posts first sales rise in five years

Topps Tiles said revenues and profits were up after reported it an overall increase in year-on-year sales for the first time since 2007.

The firm said this came after a tough first half gave way to a considerably improved second period.

Like-for-like sales dropped 4.7% in the first half of the financial year, but then grew 3.5% during the second.

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Topps added that in the first seven weeks of the new financial period, like-for-like revenues were up 1.0%.

Group revenue in the year to September 29th was up 1.2% to £177.7m, while pre-tax profits jumped 58% to £12.5m.

Basic earnings per share were up 5.14p from 3.04p the year before.

The company said it had increased market share by 1% to 27%, which it said reflected a successful strategy of 'inspiring customers' home improvement projects' and increased focus on trade customers.

Gross margin increased to 60.0%, from 59.6% the previous year, reflecting further supply chain efficiencies and proactive management of cost base.

"Whilst our most recent trading period offers some encouragement, we continue to be cautious in our outlook," the statement said.

The firm added that it would continue with a cautious expansionary approach and open new stores where strong trading locations became available.