Topps Tiles PLC (LSE:TPT) expects to report record full-year sales despite a moderation of growth in the final quarter.
In a trading update for the 52 weeks to 30 September 2023, the firm said group sales in the year were around £263 million, up 6.4% year on year, and around £40 million higher than the last financial year before the Covid pandemic.
The company said it was “a significant outperformance relative to the UK tiling market”.
In the fourth quarter, sales grew by 3.2%, Topps Tiles said.
“As expected, sales growth moderated in the final quarter, reflecting the impact on residential RMI [repair, maintenance and improvement] spend of the prolonged period of inflation, higher interest rates and the slowing housing market,” the firm added.
Profitability improved in the second half as expected and adjusted pre-tax profit for the year is expected to be in line with market expectations.
Rob Parker, chief executive, said: “It was also a year of strong strategic progress, in which Topps Tiles continued to take significant market share, Parkside was set-up for profitable growth and Pro Tiler's performance went from strength to strength.
“As a result of this progress, we anticipate delivering our goal of '1 in 5 by 2025' significantly ahead of schedule,” he added.