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Buy into Topps Tiles' rebound

Having bolstered its balance sheet, the tiling specialist should benefit from the stamp duty holiday
Buy into Topps Tiles' rebound

The fortunes of Topps Tiles (TPT) and the housing market are inextricably linked – people often renovate their homes before attempting to sell or after moving in. The UK’s leading tiling retailer could therefore benefit from government efforts to kickstart the housing market, namely the temporary cut in stamp duty. That helping hand could add to an improving post-lockdown trajectory – with all stores back up and running in the last week of June, the recovery in sales has been better than expected.

IC TIP: Buy at 42.5p
Tip style
Speculative
Risk rating
High
Timescale
Medium Term
Bull points

Strong recovery since store reopenings

Potential stamp duty holiday boost

Net cash

Commercial opportunity

Bear points

Weaker economic times ahead

Traditional reliance on physical stores

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