Topps Tiles (TPT) saw adjusted fill-year pre-tax profit rise by a modest 1.6 per cent year-on-year to £13m, helped by £1.6m in gains from the sale of three freehold properties - but group like-for-like sales fell by 0.5 per cent. Topps did, however, push through a decent dividend hike and the tile retailer also managed to further grow its market share.
Topps boosted its share of its core UK market by 150 basis points to 28.5 per cent. Moreover, and despite discounting across the industry, Topps also grew its gross margin slightly - from 60 per cent to 60.2 per cent. Management renewed its focus on cost controls through the year, too - the impact of which should become "increasingly apparent through 2014", according to chief executive Matthew Williams. Trading in the new financial year appears to be improving as well - like-for-like sales in the eight weeks since the period ended, for instance, have risen by 7.4 per cent. Topps also grew its store numbers in the period - from 324 to 327 sites - and, during the second quarter of this year, it plans to trial trading from a smaller store format, called Topps Tiles Boutique.
Broker Peel Hunt expects adjusted pre-tax profit of £14.5m for 2014, giving adjusted EPS of 5.7p (from 5.5p in 2013).
| TOPPS TILES (TPT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 101p | MARKET VALUE: | £194m | |
| TOUCH: | 100p-101p | 12-MONTH HIGH: | 104p | LOW: 47p |
| DIVIDEND YIELD: | 1.5% | PE RATIO: | 21 | |
| NET ASSET VALUE: | * | NET DEBT: | £36.6m | |
| Year to 28 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 179 | 9.88 | 3.90 | nil |
| 2010 | 182 | 12.4 | 4.56 | 1.00 |
| 2011 | 176 | 7.91 | 3.04 | 1.00 |
| 2012 (restated) | 178 | 12.5 | 5.14 | 1.25 |
| 2013 | 178 | 10.6 | 4.76 | 1.50 |
| % change | - | -15 | -7 | +20 |
Ex-div: 23 Dec Payment: 31 Jan *Negative equity shareholders' funds | ||||
