21st May 2019 10:24
LONDON (Alliance News) - Topps Tiles PLC on Tuesday described its interim performance as "resilient", with second-half operations starting solidly.
On a statutory basis, revenue fell 0.2% year-on-year for the 26 weeks to March 30 to GBP110.3 million, with pretax profit slipping 19% to GBP5.2 million.
Topps Tiles' adjusted revenue climbed 0.5% to GBP109.0 million, with like-for-like revenue growth 0.2% compared to 0.6% a year before. Adjusted pretax profit rose 11% to GBP8.0 million.
As of March 30, the company's net debt was GBP18.0 million, reduced from GBP25.1 million a year before. Topps Tiles has held the interim dividend flat at 1.1 pence a share.
"The group has delivered a resilient first-half performance as we continue to consolidate our position as the UK's leading tile specialist. Against a consumer backdrop which remains challenging, our trading performance was robust, underpinned by further gains in market share," said Chief Executive Matthew Williams.
"Our commercial tile business continues to grow rapidly, with first-half sales more than tripling year-on-year. Expansion of the commercial division was accelerated by the acquisition of Strata Tiles in April."
"Strata is highly complementary to our existing Parkside commercial business and, together, the two brands provide the group with a strong base for further expansion into this large and attractive market segment," he added.
Things have been "encouraging" since the period end, Topps Tiles said, with like-for-like sales in the first seven weeks of the second half returning to growth of 1.2% after a 0.2% fall the year prior.
Shares were 3.8% lower on Tuesday morning at a price of 74.84p each.
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