8th Jan 2020 08:50
(Alliance News) - Topps Tiles PLC on Wednesday said it expects to deliver growth over the medium term as it performance improved towards the end of 2019.
The tile specialist said like-for-like retail revenue for the 13 weeks to December 28 declined by 5.4%.
However, the company highlighted that for the 5 weeks to December 28, it experienced a reduction in like-for-like revenue of just 1.4%, meaning that its performance "improved significantly" towards the end of the quarter. Topps Tiles previously had reported that retail like-for-like revenue in the first eight weeks of the quarter had decreased by 7.2%.
Topps Tiles said overall customer satisfaction score in its Retail division continued to improve over the 13-week period, with 88% of customers "highly satisfied". The company said it also continued to actively manage its Retail store portfolio - ending the period with 361 stores, having closed one store and relocated another.
Turning to Commercial unit, Topps Tiles said its strategy of creating a new market leader continues to make good progress. Commercial sales for the quarter were GBP2.3 million, more than tripled year-on-year.
"Our first quarter performance reflects the full impact of the heightened political and economic uncertainty evident in the run up to December's general election" in the UK, explained Chief Executive Rob Parker. "As expected, the retail like-for-like sales decline began to return to its pre-election trend towards the end of the quarter."
Parker added: "As we enter 2020, we remain confident that our market-leading retail offer and growing commercial operations give us a strong platform from which to deliver sustainable growth over the medium and long term."
The stock was trading 1.3% higher in London on Wednesday morning at 76.74 pence a share.
Topps Tiles expects to publish another trading update on April 1.
By Evelina Grecenko; [email protected]
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