Topps Tiles on track as it comes to year-end

Like-for-like revenues rose four per cent in a better-than-expected fourth quarter, prompting at least two City analysts to raise their full-year forecasts.

Leeds businessman Victor Watson is a former director of the company, stepping down in January 2009 after 10 years.

The group, which trades from 313 stores in the UK after opening 12 sites and closing or relocating eight shops in the year to September 30, said annual revenues would be in the region of 182.4m, a two per cent increase.

It is on course for profits within the City's range of between 14.5m and 17.1m.

The fourth quarter improvement followed a tough summer for the Leicester-based company after like-for-like sales dropped 1.2 per cent in the quarter to July 3.

David Jeary, a retail analyst at Investec Securities, said he now expected profits of around 16m this year, close to the level seen last year.

He added: "This is a pleasing end to the year, after what has been a difficult period for Topps in recent years."

Freddie George, a retail expert at Seymour Pierce, raised his profits target from 14.5m to 16m but said the current state of the housing market meant Topps was a long way from a return to the 40m in profits it achieved during the property boom in 2004/5.