Revenue has declined and profits have slumped at Topps Tiles, the tile specialist, with 2024 a challenging year for RMI (repairs, maintenance and improvement).
According to unaudited consolidated annual financial results for the 52 weeks ended 28 September 2024, group revenue decreased to £251.8 million at Topps Tiles, down from £262.7 million.
Meanwhile, the Leicester business posted a loss before tax of £16.2 million, in comparison to a £6.8 million profit in the year prior. Topps Tiles noted this to be a result of a £19.4 million non-cash impairment, primarily of right-of-use assets, and a £3.1 million expense relating to the purchase of remaining Pro Tiler shares.
Rob Parker, Chief Executive, said: “2024 has been a challenging year for RMI (repairs, maintenance and improvement) and especially bigger ticket spend.
“In the tile market, volumes remain well below pre-pandemic levels. Whilst Topps Group is not immune to these pressures, our growth strategy has served us well and we have continued to outperform the wider tile market.
“The start of the new financial year has seen a return to modest sales growth for the Group, helped by weaker prior year comparatives and the continued strength of our trade offer.
“Whilst pleasing, the forward macro indicators for our market remain mixed, in particular weaker consumer confidence, and we need to see a sustained improvement in these metrics before we can be confident of a consumer recovery.
“‘Mission 365’, which sets ambitious revenue and profit medium-term goals, has focused the business around key areas of growth and we have delivered good progress against these over the second half – notably our trade digital offer, our plans to significantly expand our addressable market into hard surface coverings, trade business to business opportunities with the acquisition of CTD Tiles and the strong growth in online pureplay.
“The robust strategic progress being made now to position the business for the future leaves us well-placed for a recovery in market volumes and underpins our confidence in the medium term outlook.”
