Tile specialist Topps Tiles has revealed an increase in sales during its first quarter.
According to its latest trading update for the 13 week period ended 26 December 2020, retail like-for-like sales increased by 19.9% with good growth in sales across both of its main customer groups, professional fitters and homeowners.
“We expect to see an impact on sales during the period of tighter restrictions and trading margins will come under some pressure due to the additional delivery costs associated with higher levels of online sales,” Topps said.
The markets served by its Commercial business are seeing a more protracted recovery from the impact of Covid-19 when compared to that witnessed in domestic RMI, however Topps expects to make progress within Commercial this year.
“Our performance in Commercial is in line with our plans and we remain committed to our strategy of disrupting the commercial market and constructing a market leader over the medium term,” the company added.
The Group’s balance sheet is in a fundamentally stronger position compared with the first national lockdown in Spring 2020 and, as at 26 December 2020, adjusted net cash was £28.5 million.
Rob Parker, CEO, said: “I am encouraged by our performance over the first quarter with our Retail business performing very strongly, with like-for-like sales up by 19.9%, and our Commercial business on track with our plans.
“As we have done throughout the pandemic, we are continuing to put colleague and customer welfare first. While the latest lockdown restrictions will impact sales, at this stage it is very difficult to estimate the level of impact or how long this may last. The business remains well funded, is debt free, has a market leading offer and a clear strategic focus on achieving our goal of ‘1 in 5 by 2025’*. The combination of these factors gives me confidence that Topps is well-positioned for growth as we emerge from the restrictions of the pandemic and the economy recovers.”