Image source: Shutterstock

Highlights

  • In FY24, Topps Tiles reported a 5.8% YoY drop in adjusted revenue, reaching GBP 122.80 million
  • Topps Tiles posted a loss before tax of GBP 16.20 million in FY24, compared to a profit of GBP 6.80 million in FY23
  • The company is cautiously optimistic for FY25, with sales growth in the first eight weeks and a focus on the ‘Mission 365’ plan targeting GBP 365 million in sales

Topps Tiles PLC (LSE:TPT) is a retailer of tiles headquartered in the United Kingdom. It supplies tiles and associated accessories to both trade and retail customer bases for the refurbishment of domestic housing.

In the fiscal year 2024 (FY24), Topps reported adjusted revenue of GBP 122.80 million, a 5.8% decrease from GBP 130.30 million in FY23, reflecting a GBP 7.50 million drop. During the reported period, the company witnessed a significant post-pandemic downturn in the tile market, driven by weakened consumer demand and a challenging macroeconomic environment, particularly within the repairs sector.

The company reported a loss before tax of GBP 16.20 million in FY24, compared to a profit of GBP 6.80 million in FY23. The loss was primarily due to GBP 19.4 million in non-cash impairments, mainly related to right-of-use assets and fixtures & fittings, as well as additional costs, including GBP 3.1 million for acquiring the remaining Pro Tiler shares.

Recent Business Update

On 03 March 2025, Topps Group announced that the UK's Competition and Markets Authority (CMA) approved its proposed remedies for the acquisition of CTD Tiles, preventing a Phase II investigation. The acquisition includes CTD's brands, 30 retail stores, selected stock, and intellectual property, and was reviewed by the CMA under UK merger control regulations.

Company Outlook

The company’s outlook for the future is cautiously optimistic, as sales have started to show growth in the first eight weeks of FY25. Although consumer confidence, particularly in the tile market, remains somewhat weak, Topps Tiles is concentrating on strategic initiatives aimed at positioning the company for recovery. Key to this strategy is the ‘Mission 365’ plan, which aims for GBP 365 million in sales and an adjusted profit before tax margin of 8-10% over the medium term.

Top 10 Shareholders

The top 10 shareholders of TPT collectively account for approximately 63.96% of the total shareholdings in the company. MS Galleon AG holds the largest portion, with around 29.81% of the shares, while Aberforth Partners LLP follows closely with a shareholding of about 14.71%.

Stock Information

The stock has experienced a decline of approximately 23.12% over the past three months and a further drop of around 34.64% over the last six months. Its 52-week low and high are GBX 30.50 and GBX 49.60, respectively. As of 05 Mar 2025, the stock is trading below the average of its 52-week high and low, with a closing price of GBX 30.75.

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 05 March 2025. The reference data in this report has been partly sourced from EODHD/Others.

 Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.