Topps Tiles PLC (LSE:TPT) shares were on the back foot on Tuesday, down 3.6%, changing hands at 41.65p, after it reported financial results for its year ended 27 September.
The company reported higher revenue and profit for the twelve months, showing record sales of £295.8 million, and adjusted revenue rose 6.8% to £265.4 million, and adjusted profit before tax increased 46% to £9.2 million.
It told investors that each part of the business delivered growth, with digital penetration rising to 21.1% and trade sales now representing about 75% of group revenue.
At the same time, it flagged that the integration of the acquired Ceramic Tile Distribution (CTD) business continues following the conclusion of the CMA investigation, with a profit expected in FY26.
Topps Tiles noted that new product categories, digital improvements and expansion of its Pro Tiler Tools division supported growth. It also acquired the Fired Earth brand in November for £3 million, adding a complementary premium offering across its portfolio.
"In what will be my final year with the business, I am pleased to deliver a strong set of financial results and strategic progress. The business has delivered a new record year of sales, combined with a strong increase in profits and dividends," outgoing chief executive Alex Jensen said in the statement.
Meanwhile, incoming chief executive Rob Parker commented: "This is a very encouraging set of results, and the team worked hard to ensure each business delivered strongly against the prior year. I am grateful to Rob for the foundations he's laid down, and I look forward to working with the team to build on this progress."
Parker fully takes the reins at Topps Tiles from 8 December.