Topps Tiles confounds Covid-19 with 15.5% y-o-y growth
Topps Tiles Plc's trading update for the six week period ended 8th August 2020 reveals that retail trading over the first six weeks of the final quarter has been robust, with like-for-like retail revenues growing by 15.5% year-on-year.
Home improvement demand has been strong across the period, with DIY activity increasing sharply and trade customer activity recovering steadily from April lows. While online sales have moderated from the peaks seen in April and May they remain above previous levels, leveraging the Group's recent online investments.
The business is now operating as normal with all stores open and the vast majority trading a full seven day week. As a result, the Group has ceased to make use of the UK Government's Job Protection Scheme.
The retail performance over the last six weeks, combined with an order bay that is significantly ahead of 2019, means that the Board now expects that the Group will generate a modest level of adjusted profit before tax for the 52 weeks ending 26th September 2020.
Commercial sales remain subdued but activity levels are starting to improve. Topps Tiles is not expecting a sudden increase in sales but believe the Group can continue to take market share and remains committed to the goal of building a market leading commercial business over the medium term.
The combination of strong trading and receipt of the proceeds from the sale and lease back of the Group's head office and warehouse buildings at Enderby in June, have had a material impact on the Group's liquidity position. The Group currently has c. £9 million of net cash and available cash headroom of £58 million within its financing facilities.
Rob Parker, Chief Executive, said: "I am pleased with how well the business has navigated the crisis to date and feel that we are well positioned for whatever comes next. Our colleagues have responded brilliantly over the last five months and I would like to once again place on record my thanks for their dedication and endeavour. I am also very grateful to our loyal customers who have continued to support us during this period. Our response to the pandemic has strengthened the business and fundamentally improved our liquidity position, providing further flexibility and putting us in a strong position both to benefit from the recovery in our markets and to meet any future challenges."
More at: http://www.toppstilesplc.com/