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Highlights

  • Revenue growth: Group sales (excluding CTD) rose 4% year-on-year to £127.7 million in H1 2025.

  • Trade sales: Trade sales in Topps Tiles brand increased 12%, with active traders rising 11% to 146,000.

  • Digital expansion: Online trade traffic surged four-fold, with digital sales up 15%.

     

Topps Tiles Plc (LSE:TOPS), the UK’s leading tile specialist, has reported 4% year-on-year growth in group sales (excluding CTD) for the 26-week period ending 29 March 2025. The company experienced progressive sales improvement throughout the first half, driven by trade performance, digital expansion, and strategic pricing initiatives.

Sales Recovery Strengthens in Q2

Despite a slow start in January, sales volumes picked up momentum, culminating in high single-digit percentage growth in March compared to the previous year. Underlying sales growth, adjusted for holiday timing, rose from 3.3% in Q1 to 4.4% in Q2.

Within the Topps Tiles brand, like-for-like sales increased 3.7% in Q2 and 3% overall in the first half. While homeowner demand remained subdued, the company saw significant trade sales, aligning with its 'Mission 365' growth strategy.

Trade Sales and Digital Growth Drive Performance

Trade sales were a key growth driver, rising 12% year-on-year. The company also saw a significant increase in digital engagement, with online trade traffic expanding four-fold and digital sales growing 15%.

Topps Tiles continues to invest in technology, with plans to launch a new customer engagement platform in 2025 and a dedicated trade app in 2026. The company’s Pro Tiler Tools and Tile Warehouse divisions also delivered year-on-year sales growth.

Profitability and Operational Enhancements

Topps Tiles focused on rebuilding profitability, implementing a review of product pricing, product mix, and discount structures. These efforts resulted in an improvement in gross margins, despite the rising proportion of trade sales.

Operationally, the new 140,000-square-foot warehouse in Northampton has significantly enhanced supply chain efficiency, particularly supporting Pro Tiler Tools’ growth. Additionally, the CTD supply chain operation was successfully relocated to this facility, enabling the closure of existing CTD warehouses.

Outlook

The company acknowledged ongoing cost pressures, including increases in National Living Wage and National Insurance, which will raise annual costs by approximately £4 million from April 2025. Additionally, higher seasonal energy costs and strategic investments will result in profitability being more weighted towards the second half of FY 2025.

Topps Tiles has also made significant progress in its search for a new Chief Executive, following Rob Parker’s planned departure.

CTD Acquisition Progress

Regarding its acquisition of CTD, Topps Tiles confirmed that the Competition and Markets Authority (CMA) has approved its proposed undertakings to sell four stores, avoiding a Phase II investigation.