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Topps hits market share target early

Slowing growth in the tile market impacted like-for-like sales, but Topps Tiles continues to gain market share.
December 1, 2015

The tile market might be growing at a slower pace than last year, but Topps Tiles (TPT) is still taking market share. A report covering the tile industry by research provider MBD says growth in 2015 is likely to be 3.6 per cent, compared with the 5.5 per cent seen in 2014. This is reflected in the group's like-for-like sales: up 5.4 per cent for the year to 3 October, compared with 8.1 per cent the previous year. But the figures still suggest the company has achieved its target of taking £1 out of every £3 spent in the UK domestic tile market ahead of schedule. And, crucially, market share is not coming at the expense of margins, which rose 30 basis points to 61.2 per cent at the gross level.

IC TIP: Hold at 163p

Chief executive Matt Williams said the key driver of the year's performance was Topps' range of products. The company has "forged forward in terms of the differentiated and exclusive ranges" it has available, and he argues that this helped attract customers. Topps launches at least one product every week, and sales of new ranges in the past 12 months accounted for more than £12m - or 9.3 per cent of tile sales.

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