12th Jan 2022 12:09
(Alliance News) - Topps Tiles PLC on Wednesday reported climbing first quarter sales but cautioned that profits cold be impacted by cost pressures going forward.
For its Retail business the tile specialist posted like-for-like sales on a one-year basis 1.0% higher for the first quarter ended January 1. On a two-year basis sales grew 21%.
Despite steady trading, Topps said it had been forced to take "significant steps" to protect profits and fully mitigate cost pressures caused by higher shipping costs and general inflation in the cost of goods. It acknowledged that as selling prices will increase by a lower percentage than cost prices, it expects gross margins to be moderately lower year on year as a result.
Operating costs remained under control and in line with forecasts, Topps added, despite the ongoing pressures in utilities, employment costs, fuel costs and taxation.
"We have made an encouraging start to the new financial year, with strong customer demand during the first quarter and like-for-like sales growth on both a two year and one year basis against tough comparatives," commented Chief Executive Rob Parker.
"Global supply chain challenges, higher staff absence due to Covid-19 and material cost price inflation continue to provide significant headwinds, however we are managing these challenges effectively."
Shares were trading 2.1% lower at 62.64 pence each midday Wednesday in London.
By Will Paige; [email protected]
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