Topps Tiles PLC Trading Update (7093J)

TIDMTPT

RNS Number : 7093J

Topps Tiles PLC

04 April 2018

4 April 2018

Topps Tiles Plc

H1 Trading Update

Trading

Topps Tiles Plc (the "Group"), the UK's largest tile specialist, announces a trading update for the 26 week period ending 31 March 2018. The Board will announce interim results for the period on 22 May 2018.

Total revenues for the 26 week period were GBP109.4 million (2017: GBP106.6 million).

Like-for-like revenues for the 26 week period increased by 0.6%.

The Group ended the period with 376 stores, having opened 5 and closed 3 stores during the first half.

Trading in the second quarter has seen a slow down from the levels reported in Q1, with like-for-like sales down by 2.2%. While we estimate that short term weather factors in late February and March, and the timing of an earlier Easter, account for around 1.6% of the second quarter like-for-like sales reduction, it is also clear that that there has been a softening of the underlying market. We believe that we have continued to outperform the market which we attribute to the execution of our strategy and continued strong promotional positioning.

Analysis of LFL sales by quarter

 
             Q1      Q2     First Half 
---------  ------  ------  ----------- 
 FY 2018    +3.4%   -2.2%     +0.6% 
---------  ------  ------  ----------- 
 FY 2017    +0.3%   -4.1%     -1.9% 
---------  ------  ------  ----------- 
 

Strategic Progress

We continue to invest in the business and to make good progress with our core strategy of "Out-Specialising the Specialists" to extend our market leading position in the UK tile market. Specific strategic progress in the period includes:

 
      --   Commercial - we are investing in our 
            Parkside business with an ambition 
            to develop this into a leading brand 
            in the commercial tile market. We have 
            launched a new website, parkside.co.uk, 
            and are very encouraged by the response 
            we have received in our drive to build 
            a talented sales team. 
      --   Range - we are seeing encouraging signs 
            that we can leverage our buying scale 
            and range advantage into the commercial 
            segment, effectively almost doubling 
            the size of our addressable market 
            while staying within our specialism 
            of tiles. 
      --   Stores - we have commenced our all 
            store improvement programme which will 
            involve us implementing the latest 
            customer merchandising treatments, 
            such as our design advice area, across 
            our entire estate over the next two 
            years. 
      --   Digital - Toppstiles.co.uk, has been 
            voted a top 50 UK retail website by 
            InternetRetailing. The classification 
            was for customer experience and was 
            based on ease of navigation, usability, 
            speed and customer service response 
            times. 
 

Matthew Williams, Chief Executive Officer, said: "After a strong start to the year, market conditions have become more challenging over the second quarter. While the business has responded well with a performance ahead of the overall tile market, we are retaining a cautious view of market conditions for the remainder of the year."

The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").

- Ends -

Enquiries:

 
 Topps Tiles Plc                        0116 282 8000 
 Matthew Williams, Chief Executive 
  Officer 
 Rob Parker, Chief Financial Officer 
 
 Citigate Dewe Rogerson                 020 7638 9571 
 Kevin Smith / Nick Hayns 
 

Note to editors

Topps Tiles Plc is the UK's largest specialist supplier of tiles and associated products, targeting the UK domestic refurbishment and commercial market and serving a retail and trade customer base from 376 stores nationwide.

Since opening its first store in 1963, Topps has maintained a simple operating philosophy - inspiring customers with unrivalled product choice and providing exceptional levels of customer service.

For further information, please visit www.toppstiles.co.uk/media-centre/investors.asp

This information is provided by RNS

The company news service from the London Stock Exchange

END

TSTQXLFBVZFZBBE

(END) Dow Jones Newswires

April 04, 2018 02:00 ET (06:00 GMT)