Last close As at 05/08/2026
GBP0.36
▲ 1.90 (5.56%)
Market capitalisation
GBP71m
Research: Consumer
Topps Tiles’ (TPT’s) Q124 update indicates that trading was a little softer towards the end of the quarter than was reported for the first eight weeks, ie at the time of the FY23 results. However, the end of Q124 had a more challenging comparative than the start of the period since TPT enjoyed stronger sales as Q123 progressed. The ongoing revenue weakness is not surprising given the weak repairs, maintenance and installation market backdrop, but management believes the strength of its offer and customer service has translated into further market share gains in the period. Our forecasts for FY24 and FY25 are unchanged. The shares continue to look attractively valued versus historical multiples, relative growth rates and expected profitability.
Topps Tiles |
Outperforming weak market in Q124 |
Q124 trading update |
Retail |
4 January 2024 |
Share price performance
Business description
Analysts
Topps Tiles is a research client of Edison Investment Research Limited |
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Topps Tiles’ (TPT’s) Q124 update indicates that trading was a little softer towards the end of the quarter than was reported for the first eight weeks, ie at the time of the FY23 results. However, the end of Q124 had a more challenging comparative than the start of the period since TPT enjoyed stronger sales as Q123 progressed. The ongoing revenue weakness is not surprising given the weak repairs, maintenance and installation market backdrop, but management believes the strength of its offer and customer service has translated into further market share gains in the period. Our forecasts for FY24 and FY25 are unchanged. The shares continue to look attractively valued versus historical multiples, relative growth rates and expected profitability.
Year end |
Revenue (£m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
09/22 |
247.2 |
15.9 |
6.2 |
3.6 |
8.3 |
7.1 |
09/23 |
262.7 |
13.8 |
4.6 |
3.6 |
11.1 |
7.1 |
09/24e |
267.0 |
13.2 |
4.6 |
3.6 |
11.0 |
7.1 |
09/25e |
280.1 |
14.7 |
5.4 |
3.6 |
9.5 |
7.1 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
For the 13 weeks ending 30 December 2023, total group sales declined by 4% year-on-year, which compares with a decline of 3% after the first eight weeks of the period.
Within the overall change in group sales, the relative trends for the individual businesses in the 13 weeks are consistent with the first eight weeks. Online Pure Play continues to lead the pack with ‘significant’ year-on-year growth, Topps Tiles (stores) like-for-like sales have declined by 7.1% (6.1% in first eight weeks) and Commercial is in line with management expectations and trading profitability. The softer performance for Topps Tiles at the end of Q124 reflects a more difficult comparative: in the first eight weeks, like-for-like revenue increased by 3.4%, but stronger growth through December 2023 took Q123 like-for-like growth to 5.1%.
Management continues to expect that FY24 profit will be weighted to H224 given the softer trading early in the year (implying that it believes trading will improve as the year progress and comparatives ease) and the phasing of costs such as heating and holiday pay.
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Research: Healthcare
IRLAB Therapeutics has scheduled an end-of-Phase II (EoP2) meeting (on 20 February 2024) with the US FDA for the mesdopetam programme. This marks an important milestone for IRLAB as it will evaluate the clinical data generated to date and aim to reach a conclusion for the design of the planned Phase III programme. The meeting should also outline a clear path to a possible new drug application (NDA), including if any other information is required to support an NDA submission. Management will announce the outcome of the EoP2 meeting within Q124 as feedback from the regulatory authority is provided up to 30 days afterwards.