Topps Tiles has seen a slight decline in first-half revenues but says it expects sales to bounce back once trading restrictions ease in April.
According to its latest trading update, total revenues for the 26 weeks ending 27 March 2021 were £103.6 million, down from £106.2 million in 2020.
The challenging backdrop of lockdown restrictions and the closure of its retail stores were said to have had a ‘significantly’ impact on sales and margins in the second quarter.
However, thanks to a strong first quarter start to the financial year, when sales increased 19.9 per cent, it noted that on a like-for-like basis, retail sales rose by two per cent overall.
The tiling specialist predicts a ‘sharp increase in sales’ when restrictions lift in mid-April, much like the boost it enjoyed following the end of the first lockdown in July 2020.
The company says its well positioned for growth, with the aim of increasing its market share to 20 per cent (it’s said to be around 17 per cent at present). The target in its sights: is to account for £1 in every £5 spent on tiles and associated products in the UK by 2025.
Rob Parker, CEO, said: “Our revenues for the first half reflect a very strong first quarter followed by a period over the majority of the second quarter when sales, particularly to homeowners, were significantly impacted by the trading restrictions imposed on our stores during the third national lockdown. The Group adapted to the changed environment swiftly and effectively, producing a resilient performance in the circumstances.
“We are looking forward to the lifting of lockdown restrictions in April and are concentrating on being well prepared for the return of all customers to our stores. We have a strong balance sheet, are debt-free, and are well positioned for growth this financial year as we move towards our goal of ‘1 in 5 by 2025’*.”
The group will announce its Half Year Results on 18 May 2021.
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