Tale of two quarters for Topps Tiles
By Matt Hall | 19th May 2021
Tile specialist Topps Tiles has posted its latest financial results and remains hopeful for economic recovery throughout 2021.
But the during the six months to the end of March, the business with stores in Gloucester, Cheltenham, Stroud and Cirencester has revealed a tale of two quarters.
In the three months to December 31, Topps Tiles benefitted from shops being open as lockdown was lifted. But with the new lockdown beginning in January, the second quarter did not fare so well.
Overall revenues for the six-month period fell 2.8 per cent, but adjusted profits rose from £1.2m and £5.1m.
Chief executive Rob Parker said: "Inevitably, our first half results reflect two sharply contrasting periods of trading. An exceptionally strong performance in the first quarter demonstrated the ability of the business to bounce back following the initial lockdown.
"Our performance in the second half, while materially stronger than in the first lockdown, was heavily impacted by the re-imposition of COVID-19-related trading restrictions at the start of the period."
And with Topps Tiles being allowed to reopen from April 12, it said the business had seen a rapid increase in sales and remains confident for the months to come.
Mr Parker added: "The re-opening of our stores to all customers on 12 April has once again been received very positively and we have seen a strong recovery in sales and gross margins, with retail like-for-like sales 16.8 per cent ahead of the same period in 2019 in the five weeks since re-opening.
"We are confident of a much-improved performance in the second half and believe the group remains well positioned to take advantage of an expected increase in consumer spending."
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