Topps Tiles PLC Pre Close Trading Update (5890A)
September 30 2015 - 2:00AM
UK Regulatory
TIDMTPT
RNS Number : 5890A
Topps Tiles PLC
30 September 2015
30 September 2015
Topps Tiles Plc
Pre-close Trading Update
Record revenue and continued growth in market share
Topps Tiles Plc (the "Company"), the UK's largest tile
specialist, reports on trading for the 53 week period ending 3
October 2015.
Trading
Revenues for the 53 week period are expected to be in the region
of GBP212 million (2014: GBP195.2 million over 52 weeks).
Like-for-like revenues are expected to show an increase of c.5.3%
on the prior year (2014: +8.1%), reflecting continued growth in
market share. On a two year basis LFL sales have grown by
c.14%.
Analysis of LFL sales by quarter
Qtr 1 Qtr 2 Qtr 3 Qtr 4
--------- ------ ------ ------ ------
FY 2015 6.0% 4.5% 5.9% 5.0%
--------- ------ ------ ------ ------
FY 2014 9.3% 11.1% 6.3% 5.9%
--------- ------ ------ ------ ------
Management remain comfortable with current market estimates for
adjusted pre-tax profits for the year.
Strategic Progress
We continue to make good progress with our strategy of
out-specialising the specialist, with specific initiatives in the
period including:
-- Inspiration - further development of our
industry leading online "visualiser";
and plans in place for a roll-out of new
merchandising treatments across the existing
store estate during the year ahead following
a successful trial in our latest lab store
in Worcester.
-- Range - in the last quarter 17 new ranges
have been launched, with a focus on collaborative,
exclusive innovations with leading manufacturers.
Recent own brand developments have included
a complete tile care range, and a unique
new tile range, "Regional Reflections",
which replicates natural stone from around
the UK.
-- Convenience - we opened 3 new core stores
and 2 Boutiques in the fourth quarter.
We are currently trading from 348 stores,
including 13 Boutique stores, and expect
to finish the year with 348 stores in
total (2014: 335).
Matthew Williams, Chief Executive Officer, said: "I am pleased
to report that Topps will complete a successful year, with good
growth in profits and a record level of turnover, both of which are
directly attributable to our strategy of out-specialising the
specialist.
"As a result of this, we are confident of hitting our one third
market share goal* by the end of this year and are well advanced on
developing our next strategic goal for the organisation."
Business Simplification Initiatives
The Group is progressing two key initiatives to simplify and
streamline its operations moving forwards, with the principal
actions being:
i. The centralisation of its support functions on to one site at Leicester; and
ii. The closure of the nine remaining clearance stores, with all
stores now trading under a unified Topps Tiles store fascia
These changes will result in a non-cash charge of c.GBP3 million
in the current financial year. Annual cost savings of at least
GBP0.5m will be realised from the second half of 2015/16 year
onwards and the business will also benefit from operational
efficiencies as a result of this simplification. Full details of
these initiatives will be provided in the final results
announcement.
Topps Tiles will report its final results for the 53 week period
ended 3 October 2015 on Tuesday 1 December 2015.
* Market share goal was GBP1 in every GBP3 spent of the domestic
UK tile market. The domestic segment of the market constitutes
approximately 50% of the total market.
- 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 tools and accessories, targeting the UK domestic
refurbishment market and serving a retail and trade customer base
from 348 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.
This focus has established Topps as market leader in the UK, and
underpins its successful strategy of taking profitable market
share, which has increased from 22% in 2007 to 30.3% in 2014.
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
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