31st Jul 2008 07:00
31 July 2008
Topps Tiles Plc
The UK's largest tile and wood flooring specialist
Interim Management Statement
Topps Tiles Plc (the "Company"), the UK's largest tile and wood flooring specialist, reports on trading for the 17 weeks ended 26th July 2008. At the half year results announced on 28 May 2008, we reported that for the first 6 weeks of trading in the new financial period total revenues increased 2% and like for like revenues were down 3.0% (-4.5% when adjusting for Easter calendar effects). Trading conditions in the first 17 weeks of our new financial period remain challenging, with overall revenue declining by 2.7% (2007: up 14.4%) and like-for-like revenue declining by 7.7% (2007: up 7.6%).
The UK showed overall revenue decline of 2.9% (2007: up 13.9%) with like-for-like revenue decline of 7.9% (2007: up 7.7%).
Holland showed overall revenue decline of 0.7% (2007: up 27.2%) with like-for-like revenue decline of 2.9% (2007: up 6.2%).
In the UK, we are trading from a total of 320 stores, having opened 22 new stores, and closed or relocated 3 this financial year. We remain on track to open a net 20 new stores this financial year.
In Holland we are trading from 21 stores and plan to open 1 more this financial year.
We announced at the interim results that we would be adjusting the dividend policy with the intention of reducing net debt and improving the Group's financial flexibility. We will continue to review our dividend policy with respect to the full year.
There have been no significant unexpected changes in the financial position of the Group since the publication of the Interim Report for the half year ended 29 March 2008. In addition, we have exchanged contracts for the sale & leaseback of 4 freehold properties for a consideration of £4m.
Commenting on trading, Matt Williams, CEO said:
"As we said at our half year results, the retail environment remains challenging. We are, however, managing the business prudently, with emphasis on costs and cash. We have a resilient business model and are confident that we can grow market share in the current tough economic climate."
Enquiries:
Antonia Coad / Emma Kent
Bell Pottinger Corporate & Financial 020 7861 3232
Matthew Williams, Chief Executive Officer
Rob Parker, Finance Director 0161 486 2400
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