Topps Tiles's (TPT) full-year like-for-like sales did fall 0.7 per cent - but that's a big improvement on last year's 2 per cent decline. Moreover, it masks a significant second half recovery, when underlying sales rose 3.5 per cent, compared to 4.7 per cent slide in the fist half.
Traditionally, housing transactions have been a big demand driver in Topps' market - which, amidst today's tough housing market conditions, has meant bad news. But chief executive Matthew Williams says consumers now seem less concerned with selling homes and more focused on home improvement. Topps grew its share of the tile market by 1 per cent in the period to 27 per cent and management has responded to that shift in sentiment with a focus on higher-end products and a wider range of tiles. Store numbers have risen to 325 from 320 a year ago, too. And while total operating costs did rise by 0.5 per cent in the period to £90.6m, underlying store costs have fallen by roughly £1.5m - reflecting a variety of cost-cutting initiatives.
The group's net debt pile was cut by £5.3m in the year and broker Seymour Pierce has kept its estimates for 2013 unchanged - for pre-tax profit of £14m, giving EPS of 5.5p.
TOPPS TILES (TPT) | ||||
---|---|---|---|---|
ORD PRICE: | 47p | MARKET VALUE: | £90.2m | |
TOUCH: | 47-47.2p | 12-MONTH HIGH: | 52p | LOW: 22p |
DIVIDEND YIELD: | 2.7% | PE RATIO: | 9 | |
NET ASSET VALUE: | * | NET DEBT: | £45.6m |
Year to 29 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2008 | 208 | 27.7 | 9.60 | 3.00 |
2009 | 179 | 9.88 | 3.90 | nil |
2010 | 182 | 12.4 | 4.56 | 1.00 |
2011 | 176 | 7.91 | 3.04 | 1.10 |
2012 | 178 | 12.5 | 5.14 | 1.25 |
% change | +1 | +58 | +69 | +14 |
Ex-div: 24 Dec Payment: 31 Jan *Negative equity shareholders' funds |