Topps Tiles cements its place

Caitlin Morrison
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ANALYSTS were pleased with the half-year update from Topps Tiles yesterday, although shares in the company dipped 3.66 per cent.

The tile specialist said revenues for the 26 weeks would be around £104m, up by 5.2 per cent from £97.7m in the same period of last year.

Matthew Williams, the chief executive at Topps, said the results were up against a “particularly strong period in the prior year” and reflected a two-year like-for-like growth in excess of 15 per cent.

“Looking ahead, while experience tells us that the forthcoming UK General Election may add some short term uncertainty to trading patterns, rising levels of disposable income should support increased consumer spending on home improvements,” he said.

“The group is well positioned to continue to grow market share as we accelerate our plans to extend the appeal of the Topps brand.”

George Scott, the senior consultant at retail research agency Conlumino, said: “Even though there is some degree of uncertainty over the future scope for growth in the DIY market, Topps is tuning its proposition well to the changing nature of consumer demand. Indeed, its balanced offer remains more distinctive than specialist rivals.”

Meanwhile, analysts at Cantor Fitzgerald said the company is well placed to benefit from a rise in consumer spending, “and attractive valuation considering its track record and prospects”.