Topps Tiles PLC (LSE:TPT) said trading in the third quarter was encouraging with sales, margins and operating costs all remaining in line with expectations.
Group sales in the 13 weeks to 2 July 2022 rose 9.2% on the same period in 2021, benefitting from a full quarter of trading by the Pro Tiler Tools business, which saw sales growth of 26% in the period.
Chief executive Rob Parker said the growth in sales was achieved despite the continuing headwinds from lower consumer confidence, supply chain challenges and high inflation.
Like-for-like sales at the group’s omni-channel business, Topps Tiles, rose 2.9% in the third quarter. However, in the most recent 11 weeks, like-for-like sales dropped 0.9% against “a very strong” comparative period in 2021, when pandemic trading restrictions had been lifted.
Average weekly sales per trading store were 28% higher than in pre-pandemic full-year 2019.
The Commercial operation achieved a third-quarter sales increase of 26% despite a subdued market, and the company forecast that the business will break even in the second half of this year and then move into profitability in full-year 2023.
Topps Tiles said it remains strongly cash generative and that cash balances have increased since the half year.
"Whilst we are mindful of the current economic pressures and their impact on the outlook for consumers, we are confident that our successful strategy, multiple growth drivers and strong balance sheet leave us well-positioned to deliver medium term growth and our 20% market share goal of '1 in 5 by 2025'," Parker concluded.