Topps Tiles PLC (LSE:TPT) posted record revenues as the UK continued its obsession with home improvement and DIY.
“As a result, adjusted profit before tax is now expected to be slightly above consensus forecasts [£13.6mln] for the financial year,” the retail and wholesale distributor of ceramic tiles, wood flooring and related products said.
However, it is monitoring the impact of rising levels of input cost inflation and supply chain disruption closely.
“Mitigation or pass-through of the associated cost pressures remain a key focus for the business as it begins the new financial year,” it said.
Group revenues in the 53-weeks to 2 October were approximately 18% higher than a year ago at £227.5mln even with one quarter of the year in lockdown.
Omni-channel retail sales did well said the tiles specialist, and in the final quarter rose on a like-for-like sales by 21.7% compared and by 3% against a year ago when there was a strong bounce-back following the initial lockdown.
Margins were lower, said the retailer due to higher shipping costs, product mix changes though costs were well controlled.
In the commercial business, sales were approximately 15% higher than last year at £8.6mln.
Topps reiterated it expects to resume dividend payments at the end of the year, with a final dividend payment for the full financial year, rather than just the second half.