Topps Tiles profits rise as it integrates acquisition
reported a rise in adjusted profit for the first half of its financial year on Tuesday, as disciplined cost control and strategic execution helped offset inflationary pressures and integration costs linked to its CTD acquisition.
For the 26 weeks ended 29 March 2025, adjusted sales rose 4.1% to £127.8m, while adjusted profit before tax increased 3.2% to £3.2m.
Statutory revenue grew 16.4% to £142.9m, including CTD sales, with statutory profit before tax of £1.9m compared to a loss a year earlier.
The group said it delivered sequentially higher gross margins, aided by strong operational control despite a greater mix of trade sales.
Online trade sales rose 85% year-on-year, while Pro Tiler Tools and Tile Warehouse continued to outperform, with sales up 17.6% and 100%, respectively.
Pro Tiler's growth contributed to an 8.7% increase in adjusted earnings per share, and CTD annualised sales reached £30.3m.
Although CTD recorded a £1m loss in the period, integration was ongoing and Topps said it expected breakeven by the fourth quarter.
Topps said its balance sheet remained robust, with adjusted net debt at £1.2m and a committed banking facility in place until October 2027.
An interim dividend of 0.8p was declared, in line with policy.
The group said it expected full-year profit and sales growth, noting a strong start to the second half with adjusted sales up 9.5% in the first seven weeks and like-for-like growth of 6.2% at Topps Tiles.
"I am pleased with the progress we have made over the first half, which has included an improving sales trend, offsetting the majority of our inflationary cost pressures, and continuing to deliver our strategy; while also delivering a small increase in underlying profitability," said chief executive officer Rob Parker.
"We have recently announced the conclusion of the CMA investigation into our acquisition of CTD, which will form a major part of the business-to-business element of our growth strategy moving forwards."
Looking to the second half, Parker said current trading showed a strong improvement in both Topps Tiles and in the newer parts of the group.
"We have a clear plan to move CTD into profitability by the final quarter of our financial year and into growth beyond that.
"As a result, we expect our full year profits to show a meaningful improvement over the prior year."
At 0953 BST, shares in Topps Tiles were up 5.39% at 35.62p.
Reporting by Josh White for Sharecast.com.
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