Topps Tiles (TPT) H2 2025 earnings summary

Executive summary

• Mission 365 targets £365m sales and 8–10% net margin; 40% of sales target achieved after 18 months, with strong progress in FY 2025, especially in H2.

• Achieved 6.8% year-on-year adjusted sales growth to £295.8m, with adjusted PBT up 46% to £9.2m and adjusted EPS up 43.5%.

• Leadership transition: Rob Parker steps down as CEO, succeeded by Alex Jensen, who brings international retail and B2B experience.

• Acquisition of CTD and Fired Earth brands expands B2B and premium market reach; Fired Earth acquired for £2.5m–£3m.

• Appointment of new CFO, Caroline Browne, joining in spring 2026.

Financial highlights

• Adjusted pre-tax profit rose 46% year-on-year to £9.2m, at the top end of analyst expectations.

• Adjusted group sales rose 6.8% YoY to £295.8m; gross margin improved by 0.5 percentage points to 53.8%.

• Adjusted EPS up 43.5% to 3.43p; proposed full-year dividend up 20.8% to 2.9p per share, with a 21% higher dividend equating to 85% payout of adjusted EPS.

• Net cash at year-end was £7.4m, supported by £15m operating cash flow and £30m RCF.

• CapEx £5.5m, including £2.8m for new warehouse.

Outlook and guidance

• Confident in delivering further financial and strategic progress in FY 2026, with CTD expected to move into profit.

• Group revenue (ex-CTD) up 3.3% in first nine weeks of FY 2026; Topps Tiles like-for-like up 2%.

• Focus on digital acceleration, sales excellence, and sustainable profitability for CTD and Tile Warehouse.