Last close As at 05/08/2026
GBP0.36
▲ 1.90 (5.56%)
Market capitalisation
GBP71m
Research: Consumer
Topps Tiles’ (TPT’s) brand strength continues to shine through with ongoing market share gains versus a weak repair, maintenance and improvement sector. There is also some encouragement that overall revenue trends were relatively unchanged through Q324, with no deterioration versus what was reported for the first seven weeks, albeit it remains challenging overall. For the individual group companies, the trends and narrative are consistent with recent updates: Omni-channel remains weak given the difficult but slowly improving macroeconomic environment; Online Pure Play continues to grow strongly; and Parkside (Commercial) remains profitable despite the challenging backdrop. The trading update also indicates progress on the initiatives announced as part of the updated long-term strategy and new financial goal, Mission 365, which are expected to generate significant revenue (£365m) and profit growth (adjusted PBT margin of 8–10%) even with management’s assumption of limited recovery in the market. A cyclical recovery would be additionally helpful to estimates and, no doubt, for sentiment towards the share price. Our forecasts are under review and will be updated shortly.
Topps Tiles |
Signs of stabilisation in Q324 |
Q324 trading update |
Retail |
3 July 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) brand strength continues to shine through with ongoing market share gains versus a weak repair, maintenance and improvement sector. There is also some encouragement that overall revenue trends were relatively unchanged through Q324, with no deterioration versus what was reported for the first seven weeks, albeit it remains challenging overall. For the individual group companies, the trends and narrative are consistent with recent updates: Omni-channel remains weak given the difficult but slowly improving macroeconomic environment; Online Pure Play continues to grow strongly; and Parkside (Commercial) remains profitable despite the challenging backdrop. The trading update also indicates progress on the initiatives announced as part of the updated long-term strategy and new financial goal, Mission 365, which are expected to generate significant revenue (£365m) and profit growth (adjusted PBT margin of 8–10%) even with management’s assumption of limited recovery in the market. A cyclical recovery would be additionally helpful to estimates and, no doubt, for sentiment towards the share price. Our forecasts are under review and will be updated shortly.
Year end |
Revenue (£m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
09/22 |
247.2 |
15.9 |
6.2 |
3.6 |
6.6 |
8.8 |
09/23 |
262.7 |
13.8 |
4.6 |
3.6 |
8.9 |
8.8 |
09/24e |
249.6 |
7.9 |
2.7 |
3.6 |
15.0 |
8.8 |
09/25e |
263.8 |
11.9 |
4.3 |
3.6 |
9.4 |
8.8 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
At the group level, total sales were lower by 6.9% y-o-y in Q324, which is broadly in line with the 7.3% decline reported for the first seven weeks of the period when H124 results were published. This compares very well versus management’s estimate that the UK tile market, again at the time of the publication of H124 results, was down by 10–15% y-o-y.
The Topps Tiles brand (ie Omni-channel) continues to be heavily affected by the weak macroeconomic environment, with a 9.7% decline in sales versus a fall of 10.1% for the first seven weeks of the period. The implied slight improvement over the final weeks of the period is likely accounted for by a slightly easier comparative, hence management’s indication that sales stabilised through the quarter. The stated relative resilience of trade customers, which represented c 61% of sales in H124, versus homeowners is consistent with previously reported trends.
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Research: Consumer
Opportunity knocks at Kingsway Exchange Tunnels to participate in the proposed rejuvenation of a singular and significant national asset and its vast blank canvas for potentially lucrative commercial display. The prospect of a major visitor attraction based on heritage and culture in unusual confines begs comparison with the development of the London Eye, which was also challenging but has arguably over delivered. With full commercial launch not till 2027, protracted project risks such as execution and further funding are inevitable (planning approval is expected at the 11 July London Borough of Camden committee meeting). However, our high-level assumptions about possible year 1 returns at various attendance levels and if the site were in the hands of a content or theme park owner suggest a marked premium to the current share price.