Topps Tiles' fortunes follow housing market

Topps Tiles, the UK's largest tile and wood floorings specialist, saw a 9.3 per cent jump in like-for-like revenues over the run up to Christmas - in the 13 weeks ending 28 December.

For a company that helps people refurbish their homes, how well Topps does is closely linked to the housing market (people do up homes to sell and when they move in). So with house prices in December up 8.4 per cent from a year earlier, and set to carry on rising this year, its positive results could well continue.

Homeware specialist Dunelm has also announced upbeat results today, with like-for-like sales rising 2.9 per cent in the second quarter following a decline in the first three months of its financial year, owing to warmer weather.

Topps Tiles has 328 stores across the country, and saw shares soar by more than 130 per cent last year, despite trading taking a turn for the worse in May, on the back of low consumer confidence levels.

Shares opened up over six per cent this morning, following the interim management statement.

The retailer said there have been no significant or unexpected changes in its financial position since September, when it published its annual financial report.

Matthew Williams, CEO, said that the previous quarter's results are encouraging, but the company remains cautious:

Topps traded strongly over the first quarter, with an acceleration in like for like sales growth over the final month of the period.

Whilst we are encouraged by this and remain optimistic about prospects for 2014, at this early stage in the year we remain cautious of projecting forward this level of performance.

Trading over the second quarter will be key in this regard.

Topps is holding its Annual General Meeting later in the month, with a trading update given on the 26 March.