Topps Tiles' (TPT) results were at the top end of expectations for FY2019, but retail like-for-like revenue fell 7.2 per cent in the first eight weeks of current financial period as the call for a snap election dented consumer confidence. The step backwards by the consumer was “in line with previous experience with elections”, according to chief executive Matthew Williams, but there's no guarantee that the retailer will be able to claw back sales, even if the election provides a definitive outcome.
Adjusted profit before tax was flat at £16m, excluding the new commercial division - which the group expanded through the acquisition of Strata Tiles this year. The division’s revenue grew by 133 per cent to £4.9m and management expects it to break even in FY2020. Broker Peel Hunt expects it will be able to contribute to group profits after this point.
Overall, like-for-like sales nudged up 0.6 per cent and although the top line is under pressure, Peel Hunt believes that sales will recover after the election. The broker expects adjusted pre-tax profits of £14.5m and EPS of 6.0p for the year to September 2020, against £16m and 6.9p in FY2019.
| TOPPS TILES (TPT) | ||||
| ORD PRICE: | 70p | MARKET VALUE: | £ 137m | |
| TOUCH: | 69-70p | 12-MONTH HIGH: | 85p | LOW: 58p |
| DIVIDEND YIELD: | 4.9% | PE RATIO: | 14 | |
| NET ASSET VALUE: | 15.5p | NET DEBT: | 37% | |
| Year to 28 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 212 | 17.0 | 6.75 | 3.00 |
| 2016 | 215 | 20.0 | 8.05 | 3.50 |
| 2017 | 212 | 17.0 | 6.98 | 3.40 |
| 2018 | 217 | 12.7 | 5.00 | 3.40 |
| 2019 | 219 | 12.5 | 5.18 | 3.40 |
| % change | +1 | -2 | +4 | - |
| Ex-div: | 19 Dec | |||
| Payment: | 31 Jan |
