Topps Tiles PLC (LON:TPT) have given a confident outlook to shareholders despite tough retail trading.
The firm today said that it expects to deliver growth over the medium term as it hailed its performance in the second half of 2019.
The tile firm said that like for like retail revenue slumped for the thirteen weeks period to December 28 by 5.4%.
The firm also added that it saw a reduction in like for like revenue of 1.4% in the five weeks prior to December 28, which was a positive note.
Topps said that performance had “improved significantly” towards the end of the quarter. They previously had reported that retail like-for-like revenue in the first eight weeks of the quarter had decreased by 7.2%.
Overall customer satisfaction score in its retail division improved over the period, with a figure of 88% of customers being highly satisfied.
Additionally, a noteworthy figure was that the firm was managing its retail stores ending the period with 361 stores, with one store closure.
“Our first quarter performance reflects the full impact of the heightened political and economic uncertainty evident in the run up to December’s general election” in the UK, explained Chief Executive Rob Parker. “As expected, the retail like-for-like sales decline began to return to its pre-election trend towards the end of the quarter.”
Parker added: “As we enter 2020, we remain confident that our market-leading retail offer and growing commercial operations give us a strong platform from which to deliver sustainable growth over the medium and long term.”
Topps make some recovery after tough few months
At the start of October, the firm saw its Q4 results hit by weak consumer confidence.
The British retailer said that, in the fourth quarter, like-for-like sales decreased by 1.9%, blaming the “more challenging economic backdrop”, with uncertainty hitting consumer sentiment.
Topps Tiles added that it expects adjusted revenues for the full year to be in the region of £214 million, and adjusted pre-tax profits for the year are expected to be within the range of current market estimates (£15.5 million to £16.0 million).
Just one month on, the CEO of the company departed and was replaced by the CFO.
The company revealed that Group Chief Executive Matt Williams has decided to leave his position with effect from 29th November 2019.
Matt Williams said that he will leave the business in order to “pursue a new challenge”.
“Topps is, and will always remain, a very special company to both me and my family. It is a quality business with enormous strength in its specialism which it derives from its people and culture. It has been an honour and privilege to lead and work alongside everybody within the Topps family and I wish them all well for the future,” Matt Williams continued.
Finally, the firm saw its shares slip on the warning of a December election. Shares slipped over 3% at the end of November, over political concerns.
“At the start of the new financial year, trading conditions have become more challenging, with consumer demand weakening further since the General Election was called in late October,” the CEO warned.
“Against this backdrop of heightened political and economic uncertainty, like-for-like sales in the first eight weeks have declined,” the CEO added.
Certainly, Topps have made an good bounce back after a tough period of trading.
Shareholders will hope that 2020 can bring more stability and allow the firm to pursue its growth and expansion plans.
Shares in Topps Tiles trade at 76p (+0.79%). 8/1/20 10:48BST.
