8
January 2025
Topps Tiles
Plc
Q1 Trading Update and CEO
Succession
Topps Tiles Plc ("Topps Group", or
the "Group"), the UK's leading tile specialist, announces a trading
update for the 13-week period ended 28 December 2024 and an update
on CEO succession.
Trading Update
Building on the return to sales
growth in the early weeks of the new financial year, as reported in
the 2024 Annual Financial Results, the Group is pleased to report a
further improvement in trading over the first quarter of the
year. Group sales in the 13 weeks ended 28 December were 4.6%
higher year-on-year excluding CTD1, with sales in the most recent
five-week period up 12.9% year-on-year, supported by the timing of
the period end2. Like-for-like sales in
Topps Tiles were up 3.5% year-on-year in the 13 weeks ended 28
December 2024 and up 12.5% in the most recent five-week
period. Sales in the Online Pure Play part of the Group were
strongly positive.
The Group plans to deliver its
'Mission 365' goal through five key growth areas:
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1.
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Improving the trade digital
experience
|
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2.
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Expanding into new coverings
categories
|
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3.
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Increasing its B2B sales
focus
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4.
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Continuing to expand Pro Tiler
Tools
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5.
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Building Tile Warehouse to
maturity
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Good further progress was made with
each of these initiatives during the first quarter.
The sales improvement in the first
quarter was driven by the ongoing strengthening of the Group's
trade offer, with robust growth in trade revenues at both Topps
Tiles and Pro Tiler Tools. In Topps Tiles, the total number
of active registered traders3 at the end of the period was
up 7% year on year to 141,000, with the number of new traders
registering in the quarter more than doubling year-on-year, both in
store and online. Trade growth has been supported by
developments in the Topps Tiles brand's digital channels, clearer
pricing and excellent stock availability, leading to total
year-on-year trade sales growth in Topps Tiles over the quarter of
13.5%. The strong sales growth in Pro Tiler Tools continues,
up 20% year-on-year in the first quarter.
As well as trade, the other key
theme of the Mission 365 growth areas is digital, and the Group
made particularly good progress in this area in the first
quarter. Total traffic to Topps Tiles' digital channels was
up 17% year-on-year, including organic
traffic4 growth of 13%, and sales transacted online were up 8%.
In particular, the Topps Tiles trade digital experience has
continued to develop at pace. Online trade traffic was up
more than five-fold, and online trade sales were up c. 60% in the
Topps Tiles brand in the period. Tile Warehouse sales were up
c. 140% in the first quarter.
The Group's new 140,000 square foot
warehouse at Pro Logis Park in Northampton was also opened in the
period. This warehouse is the new base for Pro Tiler Tools
and was fully operational at the start of January. The Pro
Tiler relocation was completed ahead of schedule and on budget, and
will unlock the opportunity for the brand to continue its strong
rate of growth and extend its product range as well as adding
operational efficiency.
The Group noted the launch of the
merger inquiry by the CMA on 18 December 2024 and looks forward to
working with the CMA as they continue their review. A
decision by the CMA on the phase 1 enquiry is due to be made by 17
February 2025.
As previously disclosed in the 2024
results, the timing of holiday pay accruals, seasonally higher
energy usage in the first half and investment in strategic growth
will result in the Group's profits in 2025 being weighted towards
the second half of the financial year.
Rob Parker, Chief Executive, said:
"We are pleased to see the Group return to sales growth in the
first quarter of the new financial year, supported by our strong
trade offer and continued strategic progress, particularly with our
digital and omnichannel growth initiatives. Whilst it is
early in the financial year and macroeconomic indicators remain
mixed, we are pleased that our growth strategy is delivering strong
results, which leaves us well positioned to deliver our goal of
Mission 365."
CEO
Succession
The Group announces that following
an extended period of consideration, Rob Parker, CEO, has notified
the Board of his intention to retire from the business after 18
years with the Group. Rob joined the Group in 2007 and served
as CFO for 12 years before becoming CEO in 2019.
The Nominations Committee has
therefore activated its succession plan and, with the support of
external consultants, has commenced the search process for a new
Chief Executive Officer.
Rob will remain in post until an
appropriate successor has been appointed, to ensure an orderly
transfer of responsibilities, which is expected to be towards the
end of 2025.
Paul Forman, Chairman, said: "Rob
has made an enormous contribution to the development and success of
the business over the last 18 years. During his time as CEO,
he has overseen a period of significant diversification and growth
of the business, and has led the Group through a particularly
volatile period for the UK economy, including the Covid pandemic.
He will leave with the Group well-positioned and we are
grateful for his continuing leadership and commitment while we
complete a managed transition to his successor. On a personal
note, I would like to thank Rob for the support, professionalism
and insight he has given me as a newly appointed Chair."
A further update will be given in
due course.
Note 1 - The Group's acquisition of
the brand and certain assets of CTD Tiles, as announced on 19
August 2024, remains under investigation by the Competition and
Markets Authority, and the Group is therefore unable to report on
the financial performance of this part of the Group.
Note 2 - The first quarter ended on
28/12/24, compared to 30/12/23 in the last financial year,
therefore more of the quieter holiday period was included in the
first quarter of the last financial year when compared to this
year. The estimated impact of the period end movement on
Group sales is shown below:
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Group sales excluding CTD
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Weeks 1-8
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Weeks 9-13
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Weeks 1-13
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Reported year-on-year sales
growth
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1.2%
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12.9%
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4.6%
|
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Estimated impact of period end
timing
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4.5%
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1.3%
|
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Underlying year-on-year sales
growth
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1.2%
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8.4%
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3.3%
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The impact of the change in period
end date on the Topps Tiles like-for-like sales growth is estimated
at approximately +5.0 percentage points in week 9-13 and +1.5
percentage points in week 1-13.
Note 3 - Active registered traders
are registered trade customers in Topps Tiles who have spent with
the brand in the last twelve months.
Note 4 - Organic traffic refers to
digital traffic generated from unpaid sources, in comparison to,
say, pay per click advertising.
For further information please
contact:
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Topps Tiles Plc
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Rob Parker, CEO
Stephen Hopson, CFO
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0116 282
8000
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Citigate Dewe Rogerson
|
|
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Kevin Smith
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020 7638
9571
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Notes to Editors
Topps Tiles Plc is the UK's largest
specialist supplier of tiles and associated products, targeting the
UK domestic and commercial markets and serving homeowners, trade
customers, architects, designers and contractors from 300
nationwide Topps Tiles stores, a commercial showroom in London and
nine customer-facing websites: www.toppstiles.co.uk,
www.parkside.co.uk,
www.protilertools.co.uk,
www.northantstools.co.uk,
www.premiumtiletrim.co.uk,
www.warmfloorstore.co.uk
www.flooringmaterials.co.uk,
www.tilewarehouse.co.uk
and www.ctdtiles.co.uk.
Since opening its first store in
1963, Topps has maintained a simple operating philosophy
‐ inspiring customers with
unrivalled product choice and providing exceptional levels of
customer service. For further information on the Group,
please visit www.toppsgroup.com