Topps Tiles warns of sales hit from new lockdown
Topps Tiles this morning warned that it would take a sales hit from the new lockdown, which has forced the firm to close its aisles to customers.
The warning came as the London-listed firm said that sales had increased 20 per cent on a like-for-like basis for the first three months of the new financial year.
Over the same period in 2020, sales dropped 5.4 per cent. The company said that the growth was shared among its two main consumer groups, professional fitters and homeowners.
Through the new lockdown, customers will still be able to purchase items via click-and-collect or direct delivery.
In a trading update, Topps Tiles said: “We expect to see an impact on sales during the period of tighter restrictions and trading margins will come under some pressure due to the additional delivery costs associated with higher levels of online sales.”
It added that it was in a stronger financial position then at the start of the previous lockdown, with net cash of £28.5m.
During the first quarter it repaid a £5m term loan drawn as part of the Coronavirus Large Business Interruption Loan Scheme, and cancelled an unused £5m revolving credit facility under the same scheme.
As a result, Topps Tiles is now debt-free heading into the new year.
Chief executive Rob Parker said: “I am encouraged by our performance over the first quarter with our Retail business performing very strongly, with like-for-like sales up by 19.9 per cent, and our commercial business on track with our plans.
“As we have done throughout the pandemic, we are continuing to put colleague and customer welfare first.
“While the latest lockdown restrictions will impact sales, at this stage it is very difficult to estimate the level of impact or how long this may last.”