Topps Tiles Plc, the UK’s largest tile specialist with 330 stores, has announced its interim results for the 26 weeks to 29th March 2014.
First half sales reached £97.7 million, up from £87.4 million in the corresponding period in the previous year, up 11.7% year on year.
Like-for-like revenue growth year on year was 10.2%, achieving a gross margin of 60.8%, reflecting a strategic focus on market share gains and stronger levels of consumer confidence. The improvement in gross margin reflects further supply chain efficiencies and proactive management of the cost base.
Topps Tiles believes that its sales growth is ahead of theoverall tile market, further strengthening its market leading position.
Topps also reported encouraging initial results from trial of new smaller format Topps Tiles Boutique stores. The trial is to continue in H2, with a further two stores to be opened in and around the M25
Like for like sales over the seven weeks to 17th May 2014 increased by 5.6%.
Commenting on the results, Matthew Williams, Chief Executive said: “The Group has delivered a very successful first half performance, with strong sales growth, improving gross margins and overall growth in profits. While trading conditions undoubtedly improved during the period, helped by a higher level of consumer confidence, we believe our first half sales growth was significantly ahead of the overall tile market.”
“Our strategy continues to focus on market share gains driven by offering an authoritative and differentiated range, outstanding service, and multichannel convenience, resulting in excellent overall value for money.”
“We have made a good start to the second half with a healthy level of sales growth in the initial seven weeks of the period. We believe we continue to grow sales ahead of the market and remain confident that our strategy will continue to deliver profitable market share gains, against a backdrop of a steady improvement in UK economic indicators.”