topps tiles

Topps Tiles shares (LON:TPT) rallied on Wednesday morning, after the company issued a promising trading update for the year.

According to the update, the tile specialist said that it expects adjusted revenues to be in the region of £215 million, compared £211.8 million reported a year previously.

It said that like-for-like revenues during the 52-week period were flat, compared to 2.9 percent the year before.

Moreover, like-for-like revenues for the 13 week period ending 29 September 2018 increased by 1.2 percent.

Topps Tiles attributed the improved performance to effective strategy, with the firm continuing to outperform the market.

It now expects profits to fall at the top-end of previously forecasted expectations.

Nevertheless, it said it remains cautious with regards to future outlook in light of continual uncertainty in the UK.

As a result, Topps Tiles closed six sites across the period whilst opening an additional two.

The company now operates 370 locations across the UK.

Matthew Williams, the Chief Executive Officer, said: “I am pleased to report an improvement in trading over the final quarter which has enabled the Group to post a full year sales result which is slightly ahead of the top end of market expectations and which represents an outperformance of the overall tile market.”

He continued: “Our core Topps Tiles business is a well invested, cash generative market leader with a proven strategy and we continue to make good progress with our expansion into the commercial segment of the UK tile market which will be an important source of future growth for the Group.”

Shares in the Topps Tiles are currently trading +11.64 percent as of 11.41AM (GMT).