CMA nears approval for Topps Tiles’ acquisition of CTD Tiles.
Following an investigation amid competition concerns, the CMA said both groups had offered to divest tile stores in Aberdeen, Inverness, Edinburgh and Dorking |
Farrugia, welcome to the board! I bought in around 35p and averaging down. You are right: the government is certainly not helping.
Management have quantified the budget impact for this and next year and the next, and there is some other inflation for next year, but the update was encouraging. It seems like there is momentum, and I believe the consumer is a lot stronger than people think.
Maintaining the dividend will be hard without nudging up to a very small net debt position, but if momentum continues, they may manage it or simply allow it to rise slightly. We are talking a couple of million. They could cut it to 1.8-2.0 p and maintain a small net cash balance. This is a share you buy for the years ahead. It's so il-liquid that the price movements are almost meaningless at this point if you are holding for years.
If you are looking for small undervalued businesses, check out Card Factory. It's my biggest holding by a long, long way. Looks very strong. |
i'm a watcher at these levels. The business is interesting but the likes of Topps have plenty of overheads and the government didn't help with hiking of minimum living salaries and national insurance. Most of the UK small caps I follow are not doing well. |
CMA is not very excited . That's good. Now the bigger problem of making more profit.... |
Eyes on the prize tomorrow ;) |
Increased my holding by 20% today... why not :) |
Watch the big bump up on Feb 17th ;)
Gov pressure will likely get rhe CMA to call off the attack dogs...
"Topps Tiles PLC - Leicester, England-based tile retailer - The UK Competition & Markets Authority on Wednesday launches a merger inquiry into Topps Tiles’ acquisition of CTD Tiles. Topps Tiles bought the CTD Tiles brand, 30 stores, and two distribution sites out of administration in August for £9.0 million. Earlier this month, the CMA had invited comment on the deal, with a deadline of Wednesday. The regulator now has a deadline of February 17 to make a decision based on the phase 1 probe. This would be to end the inquiry or move it to phase 2." |
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 |
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