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The Markets
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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Retail

Topps Tiles drops dividend, “well-positioned” to recover

The retailer dropped financial guidance for the second half but said it has “good levels of liquidity”

Topps Tiles PLC (LON:TPT) rose on Thursday as it said it is “well-positioned” to recover once the coronavirus situation normalises.

The tiles seller said it will not pay an interim dividend this year and dropped financial guidance for the second half.

READ: Topps Tiles warns on profits as post-election benefits lag

All shops are closed as of Tuesday though online operations carry on following governmental guidelines.

In the 12 weeks to 21 March, like-for-like sales dipped 3%.

The retailer said its cash reserves will provide “good levels of liquidity” for the rest of the current financial year, even in the event of a three-month closure.

The flooring specialist said it drew down a £39mln revolving credit facility and has £20mln cash immediately available.

Total net debt at the half-year ended 28 March is expected to be £19mln.

The firm added a year-long business rates holiday, the deferral of quarterly tax payment and the governmental job retention scheme will save £9.5mln, £3mln and £2mln respectively.

House broker Liberum put its 'hold' recommendation and the 65 target price under review, withdrawing forecasts for the upcoming months.

Shares advanced 4% to 36.2p on Thursday morning.

--Adds broker's comment, shares--

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