Topps Tiles cements recovery amid boom in DIY home improvements
◆ Topps Tiles has been buoyed by Britons spending more time and cash on DIY projects at home, so it now expects to make a “modest” profit this year, writes Laura Onita.
The tile specialist has also seen a return of tradesmen to its stores and website as the construction sector becomes more active after lockdown.
Sales for the last six weeks rose 15.5pc year-on-year. This means the year to the end of September will be a profitable one, despite a slump in sales in April and May. The company agreed a sale and leaseback of its head office in Leicester and central warehouse buildings to shore up its finances. It has £9m of net cash and access to a further £58m if necessary. It said it has stopped claiming furlough money for its staff as all 300 stores are now open.
Chief executive Rob Parker said he was pleased with the business.
Matt Walton, a retail analyst at GlobalData, said: “Topps’ larger stores and more limited footfall mean it will be less impacted by social distancing and a recovery in trade and commercial will further support performance.”