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Highlights

  • In FY24, Topps Tiles reported a loss before tax of GBP 16.20 million, compared to a profit of GBP 6.80 million in FY23
  • A final dividend of GBX 1.2 per share is scheduled to be paid on 30 January 2025

Topps Tiles PLC (LSE:TPT) is a retailer based in Leicestershire, United Kingdom. It supplies tiles and related accessories to both trade and retail customers. Topps Tiles is a member of the FTSE All-Share index.

In the financial year 2024 (FY24), Topps Tiles reported an adjusted revenue of GBP 122.80 million, a 5.8% decrease from the previous year's GBP 130.30 million. This decline was primarily attributed to weakened consumer demand in the tile market, which experienced a significant downturn after the pandemic, along with a challenging macroeconomic environment and reduced market activity in repairs.

The company also reported a loss before tax of GBP 16.20 million, versus a profit of GBP 6.80 million in FY23. This loss was driven by GBP 19.4 million in non-cash impairments, mainly related to right-of-use assets and fixtures & fittings, reflecting the impact of weaker trading conditions. Additional expenses, including GBP 3.1 million for acquiring the remaining Pro Tiler shares, further contributed to the loss.

However, in FY24, the company had a higher gross margin of 53.9% and an asset turnover ratio of 1.47x, compared to the industry median of 44.7% and 1.26x, respectively.

Dividend Distribution

The company's management has announced a final dividend of GBX 1.2 per share. This dividend is slated for payment on 30 January 2025. This brings the annualised dividend yield to approximately 6.02%, based on the stock price on 04 December 2024.

Company Outlook

Topps Tiles saw a modest 1.2% year-on-year growth in Group sales (excluding CTD) during the first eight weeks, although like-for-like sales were down by 0.4%. Despite ongoing weakness in consumer confidence, some housing indicators have begun to shown signs of improvement. Looking ahead, the company faces potential cost pressures due to increases in the National Living Wage and National Insurance in April 2025.

The company banks on its self-help initiatives under Mission 365 and core strengths, robust strategy and balance sheet position to drive medium-term growth. TPT’s mission 365 aims for GBP 365 million in medium term sales with an adjusted profit margin of 8-10%.

Top 10 Shareholders

The top 10 shareholders of TPT own around 63.05% of the total shares. MS Galleon AG and Aberforth Partners LLP holds the largest share, with shareholding of about 29.78% and 14.69%, respectively. The chart below illustrates this.

Price Information

The stock price of TPT has dropped by approximately 16.29% in the last three months and by around 11.75% over the past six months. The stock's 52-week low is GBX 38.00, while the 52-week high is GBX 56.65. As of 06 December 2024, the stock closed at GBX 39.8, which is below the average of the 52-week high and low.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 06 December 2024. The reference data in this report has been partly sourced from EODHD/Others.