Sparks - Topps Tiles

Topps Tiles’ FY25 trading update indicates good momentum across all businesses, with group sales excluding CTD of £265m marginally ahead of our forecast of £262m, representing year-on-year growth of 6.8%. Including CTD, sales were £296m.

The tone of the statement is positive, with each part of the business reporting an improvement in H225 versus H125, driven by execution of the strategy. Management highlights like-for-like growth in H225 at the Topps Tiles brand of 7.7% in H225 versus 3% in H125 to give 5.3% growth for the full year. The 7.7% growth for H225 is slightly better than than the 7.3% growth reported for Q325, albeit it was against a marginally easier comparative from Q424 (-8.2% versus Q324’s -9.7%).

There is a nice shape to the income statement, with improving revenue growth and a higher adjusted gross margin in H225 versus H125, and management has done a good job of controlling costs in the face of inflationary pressures.

The CEO designate, Alex Jensen, has been in place since 15 September and will work alongside Rob Parker until the end of the calendar year.