First half profit of £4.7m was ahead of guidance (£4.3m), although continued weakness in current trading is the catalyst for forecast downgrades.
While disappointing, this does not change our view that Topps remains highly geared into any future consumer and housing-related recovery.
SANJAY VIDYARTHI ESPIRITO SANTO
Our view remains that this is a well run business that is gaining market share and will benefit from an upturn in housing transactions at some point. We think the market should look through weak current trade and would see any weakness in the shares as an opportunity to buy for the longer term.
PHILIP DORGAN PANMURE GORDON
Not unexpectedly, current trading conditions are tough and we are cutting our forecasts. Given that the tile sector remains highly fragmented and unlikely to disintermediate online, we think that Topps remains a good long term growth opportunity.