Interesting that the CEO pay is increasing and he's sold shares recently. Still a huge holding, mind. |
No, I disagree with that entirely. There are loads of successful companies selling tiles. This is highly-competitive. Tile Mountain are huge compared to VIC in tiles, and seeing as almost 100% of Topps customers visit the website before buying, then I would like to ask you the question: why do so few of them not shop online but start online and go into store?
Also, while the margin is good, when they let up on their huge marketing spend, the growth stopped. They are obviously trying to spend on the brand, but I'm sceptical about that working as well as they'd like. It's a good business. I won't deny that, but I doubt it has the capacity to dominate a highly-competitive market that will always have a significant physical segment. I don't think anyone can dominate this market, and that's a good thing in general.
Honestly, though, what's to stop someone else just bankrolling a savvy pay-per-click operation from a warehouse? They do it well, but it will always have lots of competitors. |
Tiles is as competitive as the rest of the market. Tpt has a nice gross margin that it needs to support a high cost base. VIC can have the same gross margin but much lower cost (it has one big DC and no branch network) and use that margin to go after the tile market. People were sceptical about bathroom and plumbing moving online and it has. There is little reason that a decent portion of the tiles market can’t move online. |
 Agreed, the growing competitors are coming from low-bases, and tiles are cyclical. It does seem like this is roughly the lower-part of the cycle, though.
Well, Topps have seen a minor tick up from last year ATM so let's see. Hehe, I said might! Who knows, I might get clobbered when the chancellor wants some more too :)
Vic is a good business and the CEO is very driven and clearly competent, but this is a competitive market, and I can't see his comment coming true and I think he knows it won't be happening in the next decade. But if it makes Topps wake up and get online rolling, then it'll be a good thing for the consumer as well as those who are shareholders.
If I were a shareholder here, I'd be emailing IR asking the board whether the new appointment for CEO will be focused around leveraging the brand online and explicitly mentioning the leaked ambition of VIC. Hey, given the low barriers online, I'd even suggest going into VICs product lines, as many will be doing soon, I believe. It's just product, logistics and pay-per-click mostly. |
That will have stirred some interest for sure....
Controversial!
One hour, 20 minutes and 9 seconds:
Stellar Asset Management have been given the tour of VIC - inside information....the legal variety
See the VIC thread for more comments |
Probably need to look more closely at Macro than specific competitors.
Economy is going backward - thanks to the budget - Bank rate cut (imo) unlikely to kick start the economy - Too many Reeves negatives -
While JZ may be doing some tiling work many others who would like too will (imo) be suffering from a cut in disposable income so property refurbishment likely to curtailed during the coming year and so negative to suppliers of kit.
(All imo & DYOR) |
Would love to see the source, too.
Tiles are competitive and the main online competitor is Tile Mountain, I believe, doing about 10 times the sales of VIC on tiles.
Might be buying some tiles this year so wouldn't mind a price-war but can't see Topps being in any trouble. They could be doing better online, though. If they get a good CEO in next, that could change quickly. |
Hey Sphere, can you tell me where Mark Radcliffe says he wants to put Topps out of business. Mr5 |
Trading update far better than I'd feared. Wording of the CEO's retirement hints at events behind the scenes. I'm always tempted to get rid of this (for me) dog of an investment but now wondering if the board change will be a catalyst for something |
It is following a reasonably positive TU today . Looks a long way back up still though. |
Up day today, me thinks? ;) |
Unfortunately , it is closing the year at a 4 yr low. |
There is again interest in the stock this morning as buyers are prepared TWICE to pay a premium over asking price. Already at one time, the bid was over 40p.
spread 40.0 v 40.8 08:30:57 41.192p 24,141 spread 39.6 v 40.4 08:29:20 40.74p 36,617 |
When I read what an investor from Australia says I think of Home Depot for some reason. |
39.50p, UT 40p
Looks good for a recovery |
 "The Sunday Times: The largest shareholder in Topps Tiles is calling for the board to overhaul its senior management and strategy after what it characterised as a series of ‘costly blunders’."
---------------
Investor on warpath over ‘costly blunders’ at Topps Tiles- December 01 2024, , The Sunday Times
The retailer’s largest shareholder has called for an overhaul of senior management and strategy
The Austrian investor MS Galleon claimed there had been a “complete failure” to adapt to the changing retail landscape
The largest shareholder in Topps Tiles is calling for the board to overhaul its senior management and strategy after what it characterised as a series of “costly blunders”.
Piotr Lipko, managing director of the Austrian investor MS Galleon, wrote to Topps Tiles’ chairman Paul Forman last week claiming that management had shown a “complete failure” to adapt to the changing retail landscape, citing its comparatively small online business.
MS Galleon, which holds a 29.9 per cent stake in Topps Tiles, also blasted the company’s acquisition of CTD Tiles, which it described as “unequivocally irrational” and “highly detrimental” to the interests of the company.
Paul Forman is chairman of Topps Tiles
Lipko told Forman he had “grown frustrated” by his continued lack of engagement. Topps Tiles said it engaged regularly with all
Sam Chambers
The Austrian investor MS Galleon claimed there had been a “complete failure” to adapt to the changing retail landscape |
I find it odd that MS Galleon owns nearly 30% and management will not engage (properly!!). I’d suggest the problem at Topps is that it is run by accountants with limited imagination. Why don’t MS start using the many levers that are available to large shareholders to get rid off of rubbish NEDs and management |
I haven't read the article in the ST but it has been tough for the trades. After so many years of rising revenue and profits, Once the slowdown comes, which it always does! directors start to take chances to protect their bonuses and keep investors happy. ..... But the CTD buyout didn't make sense, even for a thick'o like me. |
Sunday Times. Investor on warpath over ‘costly blunders’ at Topps Tiles
The retailer’s largest shareholder has called for an overhaul of senior management and strategy |
Analysts at Peel Hunt said: 'It has been a tough year for most big-ticket retailers, reflecting pressures on both consumer and business sectors across the RMI space.
'However, Topps has clearly outperformed.
'While the consumer market has yet to show clear recovery signs, we are encouraged by the group’s return to growth in [the first quarter of its new financial year].'
The broker maintained its buy rating with a target share price of 70p. |
Surprised to see slight rise in share price ; obviously the market was expecting bad results to be perhaps even worse. |
Was going to dip my toe in here today, but the forward guidance has put me off, for now. 30p area would match the risk / reward IMO.
Forward Guidance
Despite the return of CPI inflation to around 2%, there remain significant inflationary challenges facing the business in FY25. Specifically, the recently announced changes in the National Living Wage (up 6.7% from April 2025) and the changes in both the secondary threshold and the rate of employers' national insurance contributions will drive almost £4 million of additional costs into the business on an annual basis from April 2025, of which c. £2 million will impact the FY25 financial year. Given these cost increases represent a high proportion of the current level of profitability in the Group, they will need to be managed very carefully, and the business is currently formulating plans to mitigate these costs as far as possible. When combined with other general inflation in the market, the Group is expecting around £5 million of inflationary costs in FY25 compared to FY24. In addition, it is expected that FY25 will see a return to normal levels of performance related pay across the Group, subject to the relevant targets being met. |
Blimey. Terrible set of results. At this rate this will be loss making in a year. With the CMA investigation still going on it's too risky for me - I'm out. |
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