1st Jul 2026 11:29
(Alliance News) - Topps Tiles PLC on Wednesday lowered full-year guidance as it reported a decline in third-quarter revenue due to "challenging" market conditions and reduced consumer spend.
The Leicestershire, England-based tile retailer now expects full-year adjusted pretax profit to be "above GBP6.5 million", which would be down from GBP9.2 million in the previous year. Topps Tiles previously had said it expected "modest" on-year profit growth.
"Whilst significant progress is being made...the macro-economic environment has continued to be challenging, with lower consumer spend and commercial areas such as housebuilding coming under further pressure," the company said in a statement.
In response, shares in Topps Tiles fell 6.4% to 33.50 pence each in London on Wednesday.
Revenue, including recent acquisition CTD Tiles, was GBP75.6 million in the financial third quarter that ended June 27, down 1.8% on a year before, driven by challenging market conditions as well as the effect of prior year store closures in CTD and the closure of underperforming stores in Topps Tiles.
Topps Tiles acquired CTD Tiles in August 2024. CTD currently trades from 23 stores, down from 31 in the prior year, due to commercial property decisions and the requirement to dispose of four stores following a UK competition investigation.
Excluding CTD sales for the quarter were GBP69.4 million, up 0.6% versus last year. Topps Tiles said third quarter like-for-like revenue was flat versus last year, worsening in the second half of the quarter compared to the first half.
"Since the interim update, we have seen some margin pressure as ongoing uncertainty in the macroeconomic environment has led to a current greater demand for lower priced products," Topps Tiles explained.
In addition, recent periods of extreme heatwave conditions in the UK led to temporary work stoppages among housebuilders and traders, further affecting activity levels, the company said.
"Whilst there is likely to be a catch up over a six-month period, this is unlikely to come back fully in our financial year which ends in September," Topps Tiles concluded.
By Jeremy Cutler, Alliance News reporter
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