Topps Tiles sales slump
The group said like-for-like sales fell 4.7 per cent in the third quarter as “weaker macro-economic conditions” begin to bite.
Chief executive Matthew Williams said trading in the period reflected “a more challenging” environment, and the group pointed to tough comparatives last year when housing transactions were on the up ahead of stamp duty changes which came into effect in April 2016.
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Hide AdHe added: “At the time of our interim results in May we pointed to a more challenging macro-economic environment and this has persisted through the remainder of the third quarter.
“Tougher comparatives resulting from the changes to stamp duty in the prior year were a feature throughout the period and we have seen a modest improvement in trading over recent weeks as they have begun to ease.”
On a brighter note, Mr Williams said Topps is evaluating a number of small acquisition opportunities.
Adam Tomlinson, analyst at Liberum, said Topps “remains a clear market leader”.
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Hide AdHe added: “We expect medium-term growth to be driven by improving UK residential repairs, maintenance and improvement spend, ongoing store roll-outs and the nascent opportunity within the UK commercial tile market.”