TPT Topps Tiles Plc

TIDMTPT

RNS Number : 6614L

Topps Tiles PLC

05 October 2016

5 October 2016

Topps Tiles Plc

Pre-close Trading Update

Record revenue and further strategic progress

Trading

Topps Tiles Plc (the "Group"), the UK's largest tile specialist, announces a trading update for the 52 week period ending 1 October 2016.

Revenues for the 52 week period are expected to be in the region of GBP215 million (2015: GBP212.2 million over 53 weeks). Like-for-like revenues are expected to show an increase of c.4.2% on the prior year (2015: +5.4%).

Like-for-like revenues in the 13 weeks ended 1 October 2016 were ahead by 1.4%. We estimate that the previously announced strategic decision to exit from the low margin wood flooring category during the quarter reduced Q4 like-for-like sales by c.1.5%. This impact will reduce over Q1 FY2017 as sales from our new range of larger format tiles build.

Adjusted pre-tax profits for the year ending 1 October 2016 are expected to be within the range of current market estimates.(*)

* The current range of analyst forecasts for adjusted pre-tax profits for the 52 week period ending 1 October 2016 is GBP22.0 million to GBP22.7 million, with a consensus of GBP22.3 million

Analysis of LFL sales by quarter

 
                Q1        Q2       H1        Q3       Q4      H2      FY 
------------  ------  ---------  ------  ---------  ------  ------  ------ 
   FY 2016     +4.4%   +4.9%(1)   +4.7%   +6.2%(1)   +1.4%   +3.8%   +4.2% 
------------  ------  ---------  ------  ---------  ------  ------  ------ 
 FY 2015(2)    +5.2%    +5.2%     +5.2%    +6.0%     +5.2%   +5.6%   +5.4% 
------------  ------  ---------  ------  ---------  ------  ------  ------ 
 

(1) LFL sales growth was impacted by the earlier Easter in 2016. We estimate this decreased reported LFL sales growth in Q2 by c.0.6% and increased Q3 reported LFL sales growth by the same amount.

(2) Prior year numbers have been restated on a consistent reporting week basis due to the inclusion of a 53(rd) week in H2 FY2015.

Strategic Progress

We continue to make good progress with our strategy of "Out-Specialising the Specialists", with specific initiatives in the period including:

 
   Inspiration - Topps trade loyalty scheme 
    continued to grow with over 40,000 traders 
    now regularly participating. We have now 
    launched our new digital loyalty scheme 
    which will increase opportunities to capitalise 
    further on the "do it for me trend" in 
    the UK tile market. 
   Range - As a result of in-store space 
    freed up from the exit of the wood flooring 
    category we are introducing new and exclusive 
    ranges of tiles, such as our new XL range, 
    which will meet the growing demand for 
    even larger tiles and also allow us to 
    improve overall returns. In total, more 
    than 50 new ranges have been launched 
    this year with sales from recently launched 
    lines accounting for 12.8% of total sales 
    in the period. 
   Convenience - In the core estate we opened 
    5 stores during the quarter. The group 
    is currently trading from 351 stores including 
    15 Boutique stores (2015: 348 stores including 
    13 Boutique stores). 
 

Matthew Williams, Chief Executive Officer, said: "I am pleased to report on a successful year for Topps, where we grew sales to a new record, through our proven strategy of 'Out Specialising the Specialists'. Whilst market conditions weakened over the final quarter as a result of reduced levels of consumer confidence we remain confident in our ability to outperform the market and deliver our goal of further profitable sales growth."

Topps Tiles will report its final results for the 52 week period ended 1 October 2016 on Tuesday 29 November 2016.

- 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 351 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 growing profitable sales.

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

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