Topps Tiles has reported a second record year for sales with trade up more than 10 per cent on 2021.
The tile specialist said customers had not dropped off following the pandemic home improvement boom, with sales reaching £247.3 million for the last 12 months. Pre-tax profit for the period is expected to be around £14.6 million.
The Leicester-based business said average weekly sales were 25 per cent up on pre-Covid 2019, partly due to rationalising its store network and improving store sales densities, and partly down to underlying growth, particularly in trade sales.
Chief executive Rob Parker said its strong balance sheet will help cushion the firm as it moves into a period of greater economic volatility.
In July, the group said that it was battling against lower consumer confidence, supply chain issues and inflation.
But Mr Parker assured investors that the tiles specialist still wants to take a 20 per cent share of the market in the next couple of years.
He said: “We are delighted to have delivered a second successive year of record sales for the group, with profits expected to be towards the upper end of market expectations.
“All parts of the group contributed to this performance and are making good strategic progress as we develop and diversify the business.
“Our market leading omni-channel retail business, Topps Tiles, has performed well against strong prior year comparatives and we are continuing to grow our base of loyal trade customers.
“Our expansion into the commercial market through our Parkside brand is now generating in excess of £10 million of sales, and we expect it to be profitable moving forwards.
“This year we have further expanded our activities into online pure play through the acquisition of Pro Tiler Tools and the creation of Tile Warehouse – both of which present further opportunities for profitable growth.
“The group has worked hard to achieve a strong balance sheet with positive net cash and this will serve us well as we move into a period of macroeconomic volatility, leading to a more uncertain environment for consumers.
“In this context, our 20 per cent market share goal of ‘1 in 5 by 2025’ and our growth strategy to deliver this will remain our primary focus, and we are confident that we will deliver against them both.”
Topps Tiles acquired a majority stake in digital tools business Pro Tiler in March and could take over the entire company’s shares by March 2024.
It has also moved to reach the commercial market through its specialist Parkside brand – aimed at architects, designers and contractors – which has begun to break even in profits in the last three months, and is expected to boost group profitability next year.
Topps Tiles was hit hard by the third English lockdown in the first three months of 2021 but enjoyed a rebound after stores reopened.
The business is based in Grove Park Enderby, near Junction 21 of the M1, just outside Leicester. Launched in 1963 it is now the UK's biggest specialist supplier of tiles and tiling products, serving homeowners, trade customers, architects, designers and contractors from 304 stores, four commercial showrooms and six websites.
