Topps Tiles (TPT) H1 2025 earnings summary

Executive summary

• Mission 365 targets £365m annual sales with 8–10% net margin, with strong H1 progress across all five strategic growth areas, including B2B expansion via CTD acquisition and digital trade.

• Group sales returned to growth, up 4.1% YoY in H1 to £127.8m, with Q2 outperforming Q1 and profitability improving despite inflationary pressures.

• Online sales rose to 19.8–20% of group sales, growing steadily, and customer service metrics remain world-class.

• CTD acquisition strengthens B2B, with integration underway post-CMA and four store disposals pending.

Financial highlights

• Adjusted group revenue (ex-CTD) up 4.1% YoY to £127.8m; total statutory revenue including CTD was £142.9m, up 16.4%.

• Adjusted operating profit up 19.2% to £6.2m; adjusted PBT up 3.2% to £3.2m; adjusted EPS up 8.7% to 1.12p.

• Adjusted gross margin 53.4%, down 0.5ppts YoY but up 0.7ppts sequentially; statutory gross margin diluted to 51.9% due to CTD's low margin.

• Interim dividend of 0.8p declared; full-year dividend expected to be at least in line with last year (2.4p).

• Net cash position moved to net debt of £1.2m, mainly due to working capital outflow, higher CapEx, and CTD inclusion.

Outlook and guidance

• Group sales up 9.5% YoY in first seven weeks of H2; Topps Tiles LFL sales up 6.2%.

• Full-year profits expected to show meaningful improvement, with gross margins anticipated to trend higher in H2.

• Macro environment improving but consumer sentiment remains volatile; inflationary cost pressures of ~£4m annually expected.