Topps Tiles PLC Trading Update (6172S)
October 04 2017 - 2:00AM
UK Regulatory
TIDMTPT
RNS Number : 6172S
Topps Tiles PLC
04 October 2017
4 October 2017
Topps Tiles Plc
Trading Update
Trading
Topps Tiles Plc (the "Group"), the UK's largest tile specialist,
announces a trading update for the 52 week period ending 30
September 2017.
Revenues for the 52 week period are expected to be in the region
of GBP211.6 million (2016: GBP215.0 million). Like-for-like
revenues in the 52 weeks decreased 2.9% on the prior year (2016:
+4.2%).
Like-for-like revenues in the 13 weeks ended 30 September 2017
decreased by 3.0%.
Whilst we have seen a moderate improvement in trading in our
final quarter, market conditions remain challenging and the Group
expects adjusted pre-tax profits for the 52 week period ended 30
September 2017 will be at the lower end of the current range of
market expectations.
The Group is now trading from 372 stores (2016: 351), having
opened a net five stores during the quarter.
Analysis of LFL sales by quarter
Q1 Q2 First Q3 Q4 H2 Full
Half Year
--------- --------- ------ ------ --------- ------ ------ ------
-4.1% -1.9%
FY 2017 +0.3%(1) (2) (3) -4.7%(4) -3.0% -3.9% -2.9%
--------- --------- ------ ------ --------- ------ ------ ------
FY 2016 +4.4% +4.9% +4.7% +6.2% +1.4% +3.8% +4.2%
--------- --------- ------ ------ --------- ------ ------ ------
(1) Quarter 1 in 2017 included one additional trading day due to
the timing of public holidays which we estimate increased LFL sales
growth by c.0.6%. This effect reversed during the second
quarter.
(2) Quarter 2 2017 included the loss of a trading day explained
in (1) above and also the effect of a later Easter which generated
one additional trading day. These two adjustments broadly offset
each other over the quarter.
(3) The net impact of (1) and (2) over the first half of 2017
was one additional trading day which benefited LFL sales growth by
c.0.3%.
(4) Quarter 3 2017 includes the loss of a trading day, due to a
later Easter, when compared to the prior year. The impact of this
is to reduce LFL sales by approximately 0.6%.
Strategic Progress
We continue to invest in the business and to make good progress
with our strategy of "Out-Specialising the Specialists" to
strengthen our market leading position. We have also maintained
good control over gross margins and effective cost management over
the year. Specific strategic initiatives in the period include:
* Inspiration - Our aim is to continue to inspire our
customers and deliver competitive advantage by
evolving both our online experience and the store
environment. Our customer service ratings were at
record levels during the period and we continue to
build strong customer engagement with our industry
leading online visualiser.
* Range - We have launched 34 new tile ranges over the
last 12 months. New products accounted for 9.2% of
our tile sales for the year. Continued focus on
increasing the contribution of in-house developed
ranges, together with more own brand and owned brand
ranges, means that more than 83% of our tiles are now
exclusive to us.
* Trade - Our Rewards+ loyalty scheme is now 12 months
old and has been a great success. We have 55,000
traders registered, an increase of around 35% year on
year.
* Commercial - We completed a small acquisition in the
commercial tile market during the period and continue
to build our capability for addressing commercial
opportunities originating through our store network.
* People - This quarter we have finalised our
business-wide service training for all store
management and further developed the use of our new
learning management system, "theHub", which has
resulted in the business being shortlisted for an
external award.
Matthew Williams, Chief Executive Officer, said: "It has been an
important development year for the Group. Significant strategic
progress has been made and we remain excited by the growth
opportunities open to us. Despite this, the tougher market
conditions we first highlighted in Q2 continued into the final
quarter and, as a result, we are taking a prudent view on market
conditions for the year ahead.
"We remain focused on our strategy of "Out Specialising the
Specialists" and are beginning to gain traction with a number of
new initiatives. In particular, we have made progress in the
commercial tile market, completing a small acquisition during the
period and building more commercial capability internally. We will
update shareholders on this initiative in more detail at the time
of our full year results in November."
Topps Tiles will announce its final results for the 52 week
period ended 30 September 2017 on Tuesday 28 November 2017.
- 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 372 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
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