Topps Tiles

Overview
Price performance
Financials
Research
Thematics

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

Consumer |
Update

03.04.24

Topps Tiles — Market tough through H124

Consumer |
Flash note

04.01.24

Topps Tiles — Outperforming weak market in Q124

Consumer |
Update

30.11.23

Topps Tiles — Early delivery

Consumer |
Update

04.10.23

Topps Tiles — Share gains with easing cost pressures in FY23

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Sector

Consumer

Equity Analyst

Russell Pointon

Director, Consumer

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	(7.0)	(9.3)	(18.7)
Relative	(8.6)	(13.7)	(18.5)
52 week high/low	56.4p/41.0p

Financials

Topps Tiles’ (TPT’s) H124 update shows that trading deteriorated further in Q224, following the weakness that began in Q124. Management attributes the decline to the soft external environment as noted by others in the repairs, maintenance and improvement market, other home improvement/DIY retailers and data from the Office for National Statistics. For the individual businesses, the trends remain consistent with previous updates: strong revenue growth for Online Pure Play offset by weakness in Topps Tiles stores, and Parkside continues to see a significant improvement in its financial performance. The company is well positioned for the upturn when it comes given its leading brand, breadth of product and customer service. The share price looks extremely undervalued with a prospective EV/sales multiple of 0.25x versus historical multiples of 0.7x and above in years when TPT reported operating margins that are consistent with current estimates.