Topps Tiles (TPT) Trading Update summary

Sales and trading performance

• Group sales (excluding CTD) reached £127.7 million in H1, up 4.0% year-on-year, with Q2 underlying sales growth accelerating to 4.4% after adjusting for holiday timing.

• Underlying like-for-like sales for Topps Tiles brand rose 3.7% in Q2 and 3.0% for H1 overall; trade sales grew 12% year-on-year, with trade customer numbers up 11% to 146,000.

• Digital channels saw strong momentum, with online trade traffic up four-fold and continued development of a new customer engagement platform and trade app set for 2025 launch.

• Pro Tiler Tools and Tile Warehouse maintained strong year-on-year sales growth.

Operational and strategic initiatives

• New 140,000 sq ft Northampton warehouse performed well, supporting Pro Tiler Tools' growth.

• CTD supply chain operation consolidated into a single facility, enabling closure of existing CTD warehousing.

• Investments made in core systems and marketing platforms to support future sales growth.

• Progress made in identifying candidates to succeed Rob Parker as Chair, with strong interest expressed.

Profitability and cost environment

• Focus on rebuilding profitability through product pricing, mix, and cost actions led to improved gross margins despite ongoing cost pressures.

• External cost environment remains challenging, with National Living Wage and National Insurance increases expected to add about £4 million to annual costs in 2025.

• Profitability in 2025 expected to be weighted towards the second half due to timing of holiday pay accruals, higher energy usage, and strategic investments.