By Joe Hoppe
Topps Tiles, the U.K. tiles retailer, has announced that it expects its full-year profits to meet market expectations, while also reporting record revenue. Although sales growth has moderated in the final quarter, the company remains confident in its ability to generate strong market-share gains.
Topps Tiles anticipates meeting the fiscal 2023 expectations for adjusted pretax profit, with estimates ranging from £11.3 million to £12.3 million ($13.6 million-$14.9 million). This follows last year's adjusted pretax profit of £15.6 million.
For the year ending on September 30, the company saw sales reach approximately £263 million, marking a 6.4% increase compared to the previous year. The impressive sales growth is viewed as a noteworthy outperformance in relation to the rest of the U.K.'s tiling market.
Although the final quarter experienced a moderation in sales growth, Topps Tiles attributes this to various factors impacting the residential repair, maintenance, and improvements (RMI) markets. These factors include a prolonged period of inflation, higher interest rates, and a slowing housing market.
Strong Market-Share Gains
Despite these challenges, Topps Tiles remains optimistic and expects to report significant market-share gains compared to last year's figure of 19%. The company is confident that its strengths in leading brands, world-class customer service, specialist expertise, and a strong balance sheet will drive sales, profitability, and cash generation in the years ahead.