Topps Tiles Plc

On a pro forma basis, revenue was GBP 142.6 million, down 0.2% year-on-year and broadly flat against a market that declined 2.5%. Pro forma gross margin rose 1.6 percentage points, driving a 2.9% increase in gross profit and a 17% increase in pro forma operating profit. Adjusted PBT was GBP 2.2 million, flat year-on-year on a pro forma basis, and EPS was 0.83p. The interim dividend was set at 1p per share. Looking ahead, management expects modest year-on-year full-year profit growth and said gross margins should be broadly in line with the first half; H2 self-help actions are expected to add GBP 3 million of benefit.

Alexandra Jensen framed the period as evidence that Mission 365 is progressing, with the company achieving 40% of its revenue ambition and 12% of its profit-growth ambition. Her focus was on improving bottom-line conversion, saying gross margin had expanded but PBT margin remained too low, so the company is acting on cost structure and store productivity. She sounded constructive and action-oriented, emphasizing trade growth, digital acceleration, stronger sales execution, and fixing unprofitable parts of the business.

Robert Swales highlighted the pro forma comparison, noting revenue of GBP 142.6 million, gross margin up 1.6 percentage points, operating profit up 17%, adjusted PBT of GBP 2.2 million, and EPS of 0.83p. He said operating costs rose 1.8%, including more than GBP 2 million of government-driven inflation, but self-help savings offset that pressure, while GBP 1.4 million of investment went into digital, the ERP upgrade, and the trade app. On cash, he said the period ended with net debt of GBP 3.1 million versus net cash of GBP 7 million at year-end, but the group still has a GBP 30 million RCF and expects a modest cash build in H2 and a small net cash position at year-end.

Analysts focused on trade growth, the role of CTD, supplier pricing pressure, Fired Earth’s early outperformance, M&A discipline, and whether Topps is becoming a more data-enabled platform. Management said trade matters because it is frequent, high-value spend, and described the trade app and CRM as a key second-half growth driver; they also said CTD is aimed at the housebuilder market and Fired Earth is already profitable and benefiting from group capabilities. On supplier inflation, management said they are seeing some pressure from oil-linked and freight-related costs but are managing it case by case using their diversified supply base and product knowledge.