1st Jul 2020 12:40
(Alliance News) - Topps Tiles PLC on Wednesday announced a significant improvement in sales as stores re-opened following the easing of the virus lockdown in the UK.
The tile retailer reported average weekly sales of GBP1.9 million in the 13 weeks to this past Saturday, the company's financial third quarter. This was down 53% from GBP4.1 million a year before, but reflected a steady improvement over the three-month period.
Topps said sales were down 80% on a year before in April, improving to down 69% in May and down 20% in June.
Sales grew to GBP3.9 million in the final week of June - down just 5.4% on a year before - from a nadir of GBP800,000 per week during April.
Topps said it was pleased by the performance, which it said was ahead of its revised expectations following the outbreak of Covid-19 and was due to an accelerated pace of store re-openings.
Retail website sales were 139% ahead of the prior year, helped by the company's recent investment in its online platform.
Commercial sales for the quarter were GBP1.4 million, which was 16% below the prior year and 39% below the previous quarter.
The group's financial liquidity was strengthened by the sale and leaseback of its central office and warehouse facility during the period. This brought in GBP18.1 million. Topps ended the third quarter with GBP3.9 million in net cash and financing headroom of GBP52.9 million.
"The group has demonstrated its resilience, with revenues ahead of our expectations, and we have strengthened our financial liquidity through the sale and leaseback of our central warehouse and head office facility," said Chief Executive Rob Parker.
"Looking ahead, from our market leading position and with a firm financial footing, Topps is well-positioned as the economy begins to recover," he said.
The stock was up 7.8% in London at midday at 47.84 pence, though remains down 36% so far in 2020.
By Greg Roxburgh; [email protected]
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