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.
Consumer |
Update
Consumer |
edison tv
Consumer |
Initiation
Paul Forman
Chairman
Robert Parker
CEO
Stephen Hopson
CFO
Forecast net cash (£m)
15.1
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (4.2) | (2.6) | 25.7 |
Relative | (7.0) | (3.5) | 16.6 |
52 week high/low | 56.4p/38.1p |
Topps Tiles’ (TPT’s) Q323 trading update was reassuring with an acceleration in growth in Online Pure Play and continued revenue growth in Omni-channel with sequential gross margin improvement. The business improvement plan in the previously loss-making Commercial vertical has been completed quickly, which will remove a historic drag on profits. Following this restructuring, management believes the operating businesses and their parts position TPT well for growth in the B2B market. Our profit estimates, which are in the middle of management’s indicated consensus range, were unchanged. This is reassuring in the wider sector context where demand remains volatile and profits remain under pressure.
Y/E Oct | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (fd) (p) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2021A | 228.0 | 47.6 | 16.5 | 6.73 | 7.2 | 2.0 |
2022A | 247.2 | 44.6 | 16.4 | 6.37 | 7.6 | 2.1 |
2023E | 261.3 | 40.8 | 13.2 | 4.77 | 10.1 | 2.3 |
2024E | 272.9 | 42.1 | 14.2 | 5.04 | 9.6 | 2.3 |