Topps Tiles reports slump in sales

The group expects revenue for the 52 weeks to September 30 to fall from £215m to £211.6m after like-for-like sales declined 2.9 per cent over the year.

For the final quarter of the year, like-for-like revenues decreased 3% as Topps pointed to “challenging” market conditions.

As a result, the firm said that it expects profits to come in at the lower end of market expectations.

Chief executive Matthew Williams said: “The tougher market conditions we first highlighted in Q2 continued into the final quarter and, as a result, we are taking a prudent view on market conditions for the year ahead.”

Last year, the firm notched up comparable sales growth of 4.2 per cent, when housing transactions were on the up ahead of stamp duty changes which came into effect in April 2016.

It has since pointed to a slowing housing market and a more “challenging macro-economic environment”, which have impacted its performance.

But Mr Williams concluded on an upbeat note: “We remain focused on our strategy of ‘Out Specialising the Specialists’ and are beginning to gain traction with a number of new initiatives.

“We have made progress in the commercial tile market, completing a small acquisition during the period and building more commercial capability internally.

“We will update shareholders on this initiative in more detail at the time of our full-year results in November.”