Topps Tiles upbeat as LFL sales turn positive in Q3

(Sharecast News) - Topps Tiles delivered a double-digit increase in revenues over the first half to 28 March, helped by the inclusion of sales from newly acquired CTD Tiles, and reported a return to growth in underlying sales early into the third quarter. However, profits were lower year-on-year due to trading losses at the CTD brand, though the company assured that the bolt-on business is on track to turn a profit in the second half. Meanwhile, Fired Earth, the brand acquired from administration in November, is already profitable.

Adjusted profit before tax came in at £2.2m, down 31.3% from the year before, though flat on a proforma basis, given CTD trading was a loss of £1.0m in the first half of 2025. The adjusted gross margin fell to 53.0% from 53.4%.

However, the company said that self-help cost savings and "profit-driving initiatives" will further underpin profit delivery in the second half, lifting margins.

Group adjusted revenues showed an 11.6% improvement over the year before to £142.6m, helped by £12.3m of revenues from CTD.

Highlights during the half included the trade business rising to 74.6% of group revenues, and online revenues rising to 21% of total sales from 18% the year before.

"Topps remains a market outperformer despite a softer backdrop of weaker consumer sentiment, geopolitical uncertainty and the cumulative impact of cost inflation," said chief executive Alex Jensen.

"We are making good progress in delivering our strategic agenda, including a programme of self-help measures weighted towards the second half, and we are accelerating growth in digital, trade and category extensions."

Looking ahead, the firm reported a 0.6% increase in like-for-like sales over the first seven weeks of the second half, compared with a 2% fall in the second quarter.

Topps said it expects to deliver "modest year-on-year profit growth" this current financial year.

The stock was down 0.2% at 33.94p by 0931 BST.

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