2nd Apr 2025 11:08
(Alliance News) - Topps Tiles PLC on Wednesday said national insurance contribution hikes in the UK will cost it several million pounds per year, as it reported interim sales growth.
The Leicestershire, England-based tile retailer said sales rose 4.0% to GBP127.7 million in the financial half-year that ended March 29 from GBP122.8 million a year prior.
"While trading through January was slower, volumes began to build progressively thereafter, with this improving trend culminating in a strong performance in March, when the group's underlying sales, excluding CTD, increased by a high single-digit percentage compared to the previous year," it explained.
However, "external cost environment remains challenging", Topps Tiles said.
CTD Tiles Ltd was a tile retailer that went into administration. In August, Topps Tiles agreed the GBP9 million purchase of 30 CTD Tiles stores.
Hikes to the UK national living wage and national insurance will "collectively increase the group's cost base" by around GBP4 million on annualised basis.
Looking ahead, outgoing Chief Executive Officer Rob Parker said: "Following our return to sales growth in the early weeks of the year, we are pleased to see this trend accelerate in the second quarter, driven by some initial signs of success from our new strategic initiatives, including an improved trader digital experience and further category extensions. Whilst macroeconomic indicators remain mixed, we remain focused on the delivery of our strategy which we are confident will lead to the achievement of our Mission 365 goal over the medium term."
In January, the company had said Parker will retire but remain in post until a successor is found.
Topps Tiles on Wednesday said: "The group has made good progress in identifying potential candidates to succeed Rob Parker as chief executive, with a high degree of interest expressed."
The company will release its interim results on May 20.
Topps Tiles shares were down 5.0% to 32.30 pence each on Wednesday morning in London.
By Tom Budszus, Alliance News slot editor
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