Topps Tiles (GB:TPT) reported its fourth quarter trading update on Wednesday – and the group’s total sales for the quarter jumped by 4.3% and by 10.6% for the full year, to £247.3 million.
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More and more customers are looking for home improvement options after the pandemic, the company says.
The company is positive about its full-year performance and expects adjusted profits to be at the upper end of the expectations. This makes it the second consecutive year for the company with record sales and profits.
Like-for-like sales for the quarter were down by 1.2% but increased by 9.4% for the full year.
Pro Tiler Tools, a company acquired by Topps Tiles in March 2022, witnessed the highest growth in sales at 43%.
Dudley Shanley, an equity analyst at Goodbody, said, “Amidst growing uncertainty across the industry as we head into 2023, these are a reassuring set of results for the Group, which remains focused on achieving its goal of securing a 20 percent market share by 2025.”
The company’s shares reacted positively to the update but were down by 6.4% by day’s end yesterday. Overall, the shares have fallen by 30% in the last year.
Topps Tiles is the largest tile company in the UK, supplying all kinds of tiles and natural stones for indoor and outdoor spaces in your homes.
Is Topps Tiles a good dividend stock?
The company has a dividend yield of 10.43% as compared to the sector average of 2.18%. It resumed paying a dividend in the first half of 2022 at 1.0p per share.
Conclusion
Topps Tiles has successfully navigated the cost-of-living crisis despite difficult economic conditions. The encouraging numbers are an indication that the company has grown and retained its customer base, leading to good overall progress.
