Topps Tiles PLC (LSE: TPT) a constituent of the FTSE All Share index, is a specialist retailer of ceramic, porcelain, and natural stone tiles. It serves the UK market, supplying a diverse client base that includes homeowners, trade professionals, architects, designers, and contractors. This Report covers the Key Recommendation Rationale, Conclusion, and Recommendation on the stock.

Key Investment Rationale – Speculative Buy at GBX 44.70

• Consistent Profitability - Topps Group delivered a strong financial recovery in FY25, with adjusted revenue increasing to GBP 265.4 million, up 6.8% from GBP 248.5 million in FY24. Adjusted profit before tax rose substantially to GBP 9.2 million, representing a 46.0% increase from GBP 6.3 million in FY24. The Group also improved its adjusted gross margin to 53.8% in FY25, compared with 53.3% in FY24. This year-on-year improvement highlights the Group’s disciplined operational execution and continued resilience despite a weaker consumer environment.
• Strategic Growth Path- The Group’s medium-term strategic framework, Mission 365, targets GBP 365 million in revenue and an adjusted profit before tax margin of 8–10%. Importantly, by the end of FY25 the Group had already delivered approximately 40% of the revenue increase required to achieve this target. The multi-pillar growth strategy—including category expansion, digital enhancement for trader customers, B2B acceleration, Pro Tiler scaling, and Tile Warehouse growth—provides tangible and quantifiable upside, building on FY24’s adjusted revenue base of GBP 248 million.
• Premium Customer Base- The Group has strengthened its exposure to higher-quality trade customers, who now represent around 75% of total revenue in FY25, up meaningfully from FY24. Digital trade performance has also accelerated, supported by a new trade website and improved customer engagement platform. Online trade traffic increased 66% year-on-year, while online trade sales rose 70%. Pro Tiler Tools delivered GBP 35 million in revenue in FY25, up 22% from FY24 levels, and is approaching the Groupwide net margin target of 8%. These developments reflect structural improvements that support recurring, margin-accretive growth.
• Strategic Acquisitions- CTD contributed GBP 30.4 million revenue in FY25 versus GBP 3.3 million in FY24, marking its first full-year impact post-acquisition. Profitability is expected in FY26 as integration synergies materialise. The acquisition of Fired Earth and GBP 2.5 million of stock adds a premium, design-led proposition that enhances brand reach, deepens the portfolio, and strengthens long-term margin potential.

TPT Daily Chart & Valuation

Source: Trading View, Analysis: Kalkine Group, as of December 08, 2025

For conducting the valuation, the following peers have been considered: Works co uk PLC (LSE: WRKS), Moonpig Group PLC (LSE: MOON), etc.

As per the above-mentioned price action and technical indicators analysis, a ‘Speculative Buy’ rating has been given on Topps Tiles PLC (LSE: TPT) at the Current Market Price of GBX 44.70, as of December 08, 2025, at 8:25 AM GMT.

Markets are trading in a highly volatile zone currently due to certain Macro & Micro-economic data and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 08 December 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided have been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.