It's been a depressing year for Topps Tiles' (TPT) shareholders. But chief executive Matt Williams is focused on "what [he] can control". This means pursuing the group's 'out specialising the specialists' strategy, developing new product ranges and improving convenience options for both trade and retail customers. If last year's numbers are any indication, it appears to be working. Like-for-like revenue grew 4.2 per cent - albeit compared with a 5.4 per cent growth rate last year - while gross margins nudged up 70 basis points, leading to a 7.8 per cent improvement in adjusted pre-tax profit to £22m.
But news that sales growth has slowed at the start of the current financial year means attention has turned back to margins. Mr Williams is confident he can hold the bottom line this year, despite cost inflation pressures following the recent devaluation of sterling. The group is hedged until the end of the calendar year, but further negotiations with suppliers and a shift in the sales mix should help protect profit in FY2017 as a whole.