Topps Tiles (LSE:TPT), the UK's leading tile specialist, said it expects to deliver profit upside in the second half and modest year-on-year profit growth for the 26 weeks to 28 March versus the prior 26 weeks to 29 March 2025.
Adjusted revenue rose 11.6% year-on-year to £142.6m while adjusted profit before tax fell to £2.2m, statutory profit before tax was £0.5m (H1 2025: £1.9m) and adjusted net debt was £3.1m at period end.
On a proforma basis that includes CTD in both years, adjusted revenue was marginally down 0.2%, proforma adjusted operating profit rose 17.3% and proforma adjusted gross margin improved 1.6ppts driven by Topps Tiles and Pro Tiler.
Trade mix increased to 74.6% of revenue, Pro Tiler sales were £18.4m (c.20% growth), online sales rose to c.21% of revenue and CTD's H1 trading loss improved by £0.6m and is expected to be profitable in H2.
Statutory results were affected by store impairment, one-off property closure costs, CTD residual non-recurring costs and management succession, and the board declared an interim dividend of 1.0p.
The group has launched three self-help cost programmes, including the planned closure of 23 loss-making stores, which are expected to deliver c.£3m benefit in H2 and c.£6m of sustainable annual savings, and it holds a £30m banking facility committed until October 2027.
"These actions are designed to support modest year on year profit growth and provide a stronger financial platform for 2027," said Alex Jensen, Chief Executive.
