Topps Tiles profits fall as Britain’s biggest tile retailer issues Brexit warning

Britain's largest tile retailer Topps Tiles reported a fall in profits and said it will stockpile supplies ahead of March next year after issuing a Brexit warning.

The figures

Topps Tiles said its adjusted profit before tax dropped 14 per cent to £16m for the year ending 30 September from £18.6m the previous year due to costs of new stores and inflationary pressures.

Group revenue rose 2.4 per cent to £216.9m from £211.8m and net debt reduced by £11.3m year-on-year to £16.2m.

Like-for-like sales for the year were flat as the company it delivered a robust performance against a “challenging” market backdrop.

In the first eight weeks of the new financial year this sentiment it continued, it said, with like-for-like sales decreasing 1.9 per cent.

Why it's interesting

The company issued a Brexit warning and said it would begin stockpiling goods ahead of potential disruptions to its supply chain.

The board also said Britain leaving the EU could bring about a reduction in consumer confidence, sending sales lower, and predicted possible staffing issues.

What Topps Tiles said

Chief executive Matthew Williams said: “Against a challenging market backdrop, the group delivered a robust trading performance for the year with flat like-for-like sales and market-leading gross margins in retail, and the foundations laid for significant sales growth in commercial in the year ahead.

“Whilst retaining a cautious view on the outlook, we remain confident that our expansion into the commercial tile market, coupled with our market-leading retail operation, gives us a solid platform for future growth.”