Topps Tiles shares dipped on Thursday after saying full-year profit would be in line with expectations, as the tile specialist weathered a challenging market and completed a cost-cutting programme.
The company expects adjusted pre-tax profit in line with the roughly £6.6m analysts had forecast for the year to 26 September.
Group revenue, including its CTD business, slipped around 1.3% to about £292m, reflecting store closures, though revenue excluding CTD edged up 0.7%.
Like-for-like sales at its core Topps Tiles brand were broadly flat, held back by extreme summer heat but improving in September, and the company said it had outperformed a wider market that fell around 1.7%.
Its trade-focused Pro Tiler Tools business stood out, with record revenue up more than 18%. Online sales grew to account for nearly 23% of group revenue, and newer product categories such as acoustic panels and outdoor tiles grew 9%.
The company said it had completed a self-help programme, including store closures, a more flexible labour model and head office cuts, to support profitability, while its recent acquisition of Fired Earth had added to profit.
Although the company is doing a great job of saving money where possible, the weight of a soft market is proving too much for some investors and shares lost 3% on Thursday.