Topps Tiles (LSE: TPT)

Last close As at 21/05/2024

GBP0.44

0.20 (0.46%)

Market capitalisation

GBP85m

Topps Tiles is the market-leading specialist retailer/distributor of wall and floor tiles, and associated products such as tools, grouts and adhesives, to its retail, trade and commercial customers in the UK.

Changes in consumer confidence and the health of the housing market are important indicators for the outlook on spend on residential repairs, maintenance and improvement. With increasing exposure to the corporate market, Topps Tiles is also exposed to the expansion and maintenance capital plans of those customers, specifically in the retail, leisure and travel sectors, which are also affected by changes in consumer spending.

Latest Insights

View More

Consumer | edison tv

Topps Tiles – executive interview

Consumer | Flash note

Topps Tiles — Looking to the future

Consumer | Update

Topps Tiles — Market tough through H124

Consumer | Flash note

Topps Tiles — Outperforming weak market in Q124

Sector

Consumer

Equity Analyst

Russell Pointon

Russell Pointon

Director of Content, Consumer and Media

Key Management

  • Paul Forman

    Chairman

  • Robert Parker

    CEO

  • Stephen Hopson

    CFO

Balance Sheet

Forecast net cash (£m)

20.7

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 6.9 (0.6) (15.1)
Relative 0.1 (8.9) (21.8)
52 week high/low 56.4p/40.5p

Financials

Topps Tiles’ (TPT’s) H124 results demonstrate the effects of the general market softness of spend on repairs, maintenance and improvement, as evidenced by other companies and external data. Of more importance is TPT’s updated strategy, which includes targeting new markets and further/better leverage of existing brands, and ‘medium-term’ financial goals, the most notable being an indicated more than quadrupling of adjusted PBT from our FY24 estimates. Management points to more encouraging forward indicators for customer spend (including mortgage approvals and consumer confidence), albeit current trading remains weak. With a prospective FY24 EV/sales multiple, excluding leases, of 0.25x, the shares look primed to provide strong returns when the market backdrop becomes more supportive, and if management delivers on its strategy (as it has previously) and new financial goals. Our forecasts are under review.

Y/E Oct Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2022A 247.2 44.2 15.9 6.15 7.1 1.9
2023A 262.7 42.0 13.8 4.59 9.5 2.0
2024E 249.6 35.6 7.9 2.70 16.1 2.4
2025E 263.8 40.0 11.9 4.35 10.0 2.1

Research

Flash note

Consumer

Topps Tiles — Outperforming weak market in Q124

Update

Consumer

Topps Tiles — Early delivery

edison tv

Consumer

Topps Tiles – executive interview

Initiation

Consumer

Topps Tiles — Grout expectations

Thematics

thematic

Consumer

ConsumerWatch – At least someone loves me

thematic

Consumer

ConsumerWatch – Falling into the fall

thematic

Consumer

ConsumerWatch – Making the most of the summer

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