Topps Tiles profit deteriorates, cautious outlook

First half pre-tax profit declined at tile specialist Topps Tiles, reflecting weaker levels of consumer confidence, and said it remains cautious for the remainder of the current year.

First half pre-tax profit declined at tile specialist Topps Tiles, reflecting weaker levels of consumer confidence, and said it remains cautious for the remainder of the current year.

Pre-tax profit fell to £4.7m for the 26 weeks ended March 30th 2013 from £5.0m the year before. Revenue increased to £87.4m, up 0.9% from last time.

Like-for-like (LFL) revenues slipped 0.2% during the year. LFL sales over the more recent eight weeks to May 25th fell 2.6% compared to a 3.2% gain in 2012.

Chief Executive Matthew Williams commented: "In response to the weaker market conditions we saw across the second quarter, we are implementing a programme of self-help initiatives and significant cost reduction measures and are pleased with the progress made to date."

It is targeting £2.0m of cost savings during the second half of the year.

"We are also mindful of the current trading environment which has deteriorated slightly over the last eight weeks. At this early point in the second half, assessing the likely impact on the full year outcome is difficult, but we continue to be cautious on the like for like sales outlook for the remainder of the current year."

Topps Tiles added that while recent indications of an improvement in the UK housing market give encouragement, it is too early to judge the sustainability of this trend. However the group said it remains well placed to respond to any sustained increase in housing market volumes.

Net debt reduced by £0.7m from year-end to £44.9m at March 30th, with £5.0m of undrawn bank facilities.

The dividend payment has been maintained at 0.50p per share.

Its shares fell 2.80% to 65.00p at 09:20 in London.

CJ

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
What does the Coinbase listing mean for bitcoin and other cryptocurrencies?
Bitcoin

What does the Coinbase listing mean for bitcoin and other cryptocurrencies?

As the bitcoin price hit new highs, the world's biggest cryptocurrency exchange, Coinbase, listed on the stockmarket. John Stepek looks at what that m…
15 Apr 2021
Properties for sale for around £400,000
Houses for sale

Properties for sale for around £400,000

From a converted church in Banffshire with views towards the Cairngorms National Park, to a period property in the Georgian market town of Beverley, e…
2 Apr 2021