Topps Tiles optimistic with improved trading
Published: 11 January, 2012
CHEADLE HULME: Topps Tiles posted an improved performance this week like-for-like revenues in the first 13 weeks of its financial year down 4.2%. Topps previously reported a 6.9% slump in the first seven weeks of the period, indicating a stronger performance in the last six weeks' trading.
Michael Jack, chairman of Topps Tiles said: "Looking ahead, the board remain very conscious of the difficult outlook for the consumer in 2012 but we believe that our strategy of offering outstanding value for money combined with exceptional levels of service will continue to deliver the best results for both our customers and our shareholders."
Topps, which trades from 320 stores, anticipates opening five more branches this financial year, he said.
Analysts David Jeary and Bethany Hocking of Investec Securities said they continue to believe consumer spending on big-ticket items will remain subdued and left their forecasts for the retailer's full-year results unchanged.
They predict pre-tax profits of £13m for the 12 months to September 30 against £13.9m last year. Topps' improved performance in the last six weeks was against weaker comparatives, due to last year's big freeze, they said.
"While the shares have rallied from their November lows, it remains too early in the year in our view to become more optimistic," they said.