Topps Tiles profits down by almost a fifth

Profits were lower at Topps Tiles after the retailer took a hit from property costs and its commercial business.

Profit before tax declined by 18.8% to £5.2 million in the 26 weeks to March 30.

Group revenue was broadly stable at £110.3 million.

Topps Tiles said its performance in the first half was “resilient” in the face of a challenging consumer backdrop, with adjusted pre-tax profits increasing 11.1% to £8 million.

This measure strips out some property costs as well as the impact of Parkside, the commercial tile business which the company acquired in 2017.

The unit made a loss of £1 million during the period, but was excluded from adjusted figures as Topps said it was still investing in growth.

Chief executive Matthew Williams said: “Our commercial tile business continues to grow rapidly, with first-half sales more than tripling year-on-year.

“Expansion of the commercial division was accelerated by the acquisition of Strata Tiles in April.

“Strata is highly complementary to our existing Parkside commercial business and, together, the two brands provide the group with a strong base for further expansion into this large and attractive market segment.”

Shares in the company were down 3.8% in early trading on Tuesday.

Analysts at Liberum said: “The group’s strategic focus continues to cement its market-leading position, while its long-term growth prospects supported by opportunities with the UK Commercial tile sector remain very much intact.”