Topps Tiles Share Discussion Threads

[xtrmntr] 01/8/2020 17:16

The fortunes of Topps Tiles (TPT) and the housing market are inextricably linked – people often renovate their homes before attempting to sell or after moving in. The UK's leading tiling retailer could therefore benefit from government efforts to kickstart the housing market, namely the temporary cut in stamp duty. That helping hand could add to an improving post-lockdown trajectory – with all stores back up and running in the last week of June, the recovery in sales has been better than expected.Market research provider Mintel estimates the UK tiling market is worth around £700m a year. Topps derives most of its income from the larger retail tiling segment and has strategically located its 356 stores to be less than a 20-minute drive from most customers. Providing a competitive edge, 86 per cent of its ranges are own-brand or exclusive offerings. There is scope to expand into the fragmented commercial market, which accounts for 45 per cent of the total tiling landscape – commercial sales provided just 2 per cent of Topps' total revenue in 2019, but it is aiming to become the market leader.The group is getting back on its feet after a challenging first half – the six months to 28 March were disrupted by low consumer confidence and the outbreak of Covid-19. But customer demand in the third quarter was ahead of Topps' expectations, with average weekly sales rising from £0.8m in April, to £3.9m in the final week of June – just 5.4 per cent lower than a year earlier on a like-for-like basis.The £18.1m sale and leaseback of its head office and central warehouse buildings has bolstered the balance sheet, meaning Topps was in a £3.9m net cash position (excluding lease liabilities) as at 27 June, versus £17.3m of net debt at the half-year stage.While Topps is currently more reliant on physical stores – around 90 per cent of customers visit its outlets during their purchase, it looks better placed to capitalise on changing consumer habits than smaller independents. According to research consultancy Retail Economics, the lockdown saw 45 per cent of UK shoppers buy products online that they had previously only purchased in a store. Indeed, Topps' website sales soared by 139 per cent in the third quarter.Further momentum could come from the government axing stamp duty on homes priced at up to £500,000 in England and Northern Ireland until the end of March 2021. An increase in housing transaction volumes could spur more home improvement projects. Data from property website Rightmove suggests pent-up demand, with a 49 per cent surge in enquiries for houses priced between £400,000 and £500,000 in the two weeks after the government's announcement. That said, the housing market could slow if the end of the furlough scheme sparks a rise in unemployment and a recession would impact consumer confidence.

[johnsoho] 31/7/2020 11:45

Tipped as a Buy in this weeks ‘investors Chronicle’.

[tole] 23/7/2020 15:32

Not mine. Have noticed quite a few small trades going through on a few stocks I follow as of late.

[wad collector] 23/7/2020 12:13

You responsible for all those 1 and 2 share buys yesterday?

[tole] 23/7/2020 08:58

I've been buying a few small lots the last few days to open a starter position here.

[mongi123] 06/7/2020 14:16

Role on 80p.

[wad collector] 01/7/2020 15:47

TU does look more positive than most recently , and hopefully the trading recovery is not matched by increased discounts in a desperate market. Bottom line is the profit not the sales. Sadly I think a £1 target is rather a long way off yet; it has been a long time since it last had three figures long before covid. 3 yrs. But Cudmore would disagree with me...

[rumobejo] 01/7/2020 13:03

day's high of 49.6295p paid on NEX today for 33,061 shares bought well into 50's soon

[rumobejo] 01/7/2020 12:23

fantastic update today, trading recovered very quickly to pre-covid yet share price half of what it was prior to covid. market will catch soon here 80-90p £1 in bound

[wad collector] 19/6/2020 18:25

Good to see you back in your latest re-incarnation; all we need now is a certain poster telling us he has secret knowledge of future results and this is definitely worth £2.

[discodave4] 15/6/2020 15:27

All over the place today!Held these years ago and looks like a decent recovery play.

[rumobejo] 04/6/2020 15:54

a late joiner to the 60p and £1 race? #TPT #PHTM #IPF #RPS #CARD £1

[rumobejo] 03/6/2020 12:36

hTTps://www.marketscreener.com/mods_a/charts/TV/inc_dyna_graph.php?c=4006243 in break out, back to 80p pre covid as construction sector recovers

[masurenguy] 20/5/2020 08:20

Liberum reinstates Topps Tiles as a ‘buy’ Liberum has reinstated a recommendation on Topps Tiles (TPT) as it believes management is being ‘proactive’ and adaptable. Analyst Adam Tomlinson moved the recommendation from ‘under review’ to ‘buy’ but has not yet set a new target price. Sales declined 80% year-on-year in April as Covid-19 forced the closure of all stores although there Tomlinson pointed to ‘promising signs with online sales’ which are three times higher than before the lockdown. ‘Management is being very proactive in adapting and reopening stores, such that the entire estate could be open on a controlled entry basis by the end of June,’ he said. ‘Liquidity at circa £14m remains comfortable and should rise by £10m in June as additional [government] funding becomes available.’ https://citywire.co.uk/funds-insider/ No position - added to watchlist.

[rumobejo] 11/5/2020 10:40

there is a slow accumulation going on here, this is a feeder for construction and will pop once collectors collect :D you will be wrong 100% wad ;)

[wad collector] 06/5/2020 20:46

Does look like the share price might have bottomed out , but TPT does have a habit of disappointing....very happy to be wrong.

[mongi123] 16/4/2020 13:35

Good time to buy.

[wad collector] 14/4/2020 12:49

Up 7p today for no obvious reason . Bit of volume with it. No news I can see.

[mongi123] 08/4/2020 19:49

Time to buy guys big time

[sambobo] 07/4/2020 21:01

Still looks like good value to me at ~30p/share. Fairly strong balance sheet, some debt but not an outrageous amount compared to many companies. They have a decent cash position, which should be enough to weather the C19 storm, especially with the government's fiscal measures. The revenue/profit numbers have also been stable for a few years now. The big question is how will they fair in an post Corona economy? Home improvement spending is generally fairly discretionary, especially tiling/flooring (i.e. you could still renovate a room and repurpose existing tiling/flooring). On the flip side, people may choose home renovation vs moving house if we end up with a tricky housing market - this might help to support sales somewhat. I think this uncertainty is well priced in however given the current P/E ratio, although its safe to say we can assume a lower dividend yield than the ~10% suggest by current price levels.

[wad collector] 26/3/2020 11:52

COVID-19 Update Topps Tiles plc ("Topps" or the "Group") is today providing an update on the impact of the COVID-19 pandemic. In response to the UK Government's announcement of 23 March 2020, the Group has ceased normal store operations in order to protect colleagues and customers. The Group's online business remains in operation and we are working to fulfil existing customer orders to the extent possible within the constraints of the UK Government restrictions. The Board is taking prudent steps to ensure the business is protected through this period in order that it remains well positioned to recover, once the situation has normalised. Current Trading Like for like sales in the Group's Retail business for the 12 weeks ended 21 March 2020 were down 3.1%. Financial Liquidity Topps remains in a good financial position, with a robust balance sheet. The Group's committed GBP39 million revolving credit facility has been fully drawn down, and the Group has approximately GBP20 million of cash liquidity immediately available. In addition to the above committed facilities, the Group has an GBP11 million accordion facility which is subject to lender approval. The Group expects total net debt at the half year end on 28 March 2020 to be approximately GBP19 million. The Group welcomes the emergency support measures already announced by the UK Government, which will help retain cash liquidity in the business. Specifically, the cessation of business rates for a period of 12 months will save us GBP9.5 million, and the deferral of the VAT quarter payment will improve cashflow by GBP3.1 million. We will utilise the Job Retention Scheme to furlough colleagues who are unable to work due to store closures and we estimate that this will benefit cashflow by at least GBP2.0 million per month while this situation continues. A number of additional steps are being taken to reduce costs, preserve cash and provide the business with maximum flexibility. The Group has modelled a number of trading scenarios for the balance of the current financial year but is planning its finances around the most pessimistic expectation, which assumes that stores remain closed for a prolonged period. In the event of a 12 week closure of retail premises, followed by a further quarter of materially reduced sales, when combined with the support detailed above, the Group believes that its cash reserves will provide it with good levels of liquidity for the remainder of the current financial year. The Group has shared details of its modelling with its lending bankers, who remain supportive. Full Year Outlook While assessing the outlook with accuracy is impossible, it is clear that the COVID-19 pandemic will result in a material reduction to our expectations for revenue and profit for the second half of the financial year. In these circumstances, the Group is withdrawing its financial guidance for FY20 and does not expect to pay an interim dividend this financial year. While the immediate outlook is challenging and uncertain, Topps remains a resilient, market-leading business with good levels of cash liquidity and a strong management team and the Board is confident that the Group is well positioned to recover once the situation normalises. The Board continues to monitor the situation closely and will provide a further update when appropriate.

[mongi123] 10/3/2020 09:43

Looks very likely as half year results round the corner and can't see it improving anytime soon. I'd say 25p coming . Then buy buy buy

[wton1] 09/3/2020 21:39

19p coming