30th Sep 2015 09:11
LONDON (Alliance News) - Topps Tiles PLC on Wednesday said revenue in its current financial year will exceed last year, and it "remains comfortable" with market estimates for full-year adjusted pretax profit.
The kitchen and bathroom tile and flooring retailer said that revenue in the year ending October 3 is expected to be around GBP212 million, up from the GBP195.2 million it made the year before, as like-for-like sales are expected to rise 5.3%. This is lower than the 8.1% like-for-like growth it reported the prior year, however.
Topps added that as part of its strategy to "out-specialise the specialist", it is planning the roll-out of new merchandising treatments across the whole estate following the successful trial at its Worcester store.
In addition, it launched 17 new ranges and opened three new core stores and two boutiques in the fourth quarter. It currently trades from 348 stores, including 13 boutiques.
Topps added, however, that it will make a non-cash charge of GBP3 million in the full year as a result of the closure of its nine remaining clearance stores and the centralisation of its support functions onto one site at Leicester. Annual cost savings of at least GBP0.5 million will be realised from this though, from the second half of the 2016 financial year and beyond.
"I am pleased to report that Topps will complete a successful year, with good growth in profits and a record level of turnover, both of which are directly attributable to our strategy of out-specialising the specialist. As a result of this, we are confident of hitting our one-third market share goal by the end of this year and are well advanced on developing our next strategic goal for the organisation," Chief Executive Matthew Williams said in a statement.
Shares in Topps Tiles were trading flat at 148.00 pence on Wednesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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