26th Nov 2019 10:34
(Alliance News) - Topps Tiles PLC on Tuesday reported a "resilient" retail performance though warned consumer demand in the UK has weakened.
The tile specialist reported a 1.1% rise in revenue for the 52 weeks to September 28 to GBP219.2 million, with pretax profit falling 1.6% to GBP12.5 million.
Pretax profit was down, Topps said, due to increased vacant property costs and no gains from site disposals.
Topps's adjusted revenue was 0.2% lower at GBP214.3 million, and adjusted pretax profit was flat at GBP16.0 million. Like-for-like adjusted revenue growth was 0.6%, from flat a year before.
The company is paying a final dividend of 2.3 pence per share, meaning an annual return of 3.4p, the same as the year prior.
"This has been another year of strategic progress for Topps, with a resilient sales performance in our retail business and significant development in our commercial operations. In Retail, our strategy of 'Out-specialising the Specialists' enabled us to deliver like-for-like sales growth and further enhance our market-leading gross margins in tough market conditions," said Chief Executive Matthew Williams.
"In Commercial, we saw significant year-on-year sales growth as we continue to invest in constructing a market-leader over the medium term."
Looking ahead, however, Topps has warned the upcoming UK general election in December has dampened consumer sentiment. Retail like-for-like revenue was down by 7.2% in the first eight weeks of its new financial year, after a 1.9% decrease a year before.
"At the start of the new financial year, trading conditions have become more challenging, with consumer demand weakening further since the general election was called in late October. Against this backdrop of heightened political and economic uncertainty, like-for-like sales in the first eight weeks have declined," said CEO Williams.
"Whilst we expect external events will continue to weigh on consumer confidence for the immediate future, we remain confident our market-leading retail offer and growing commercial operations give us a strong platform from which to deliver sustainable growth over the medium and long term."
Shares were 0.3% lower on Tuesday morning in London at 65.00 pence each.
By George Collard; [email protected]
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