Topps Tiles (LSE: TPT)

Last close As at 27/03/2024

GBP0.45

0.55 (1.25%)

Market capitalisation

GBP87m

Topps Tiles is the market-leading specialist retailer/distributor of wall and floor tiles, and associated products such as tools, grouts and adhesives, to its retail, trade and commercial customers in the UK.

Changes in consumer confidence and the health of the housing market are important indicators for the outlook on spend on residential repairs, maintenance and improvement. With increasing exposure to the corporate market, Topps Tiles is also exposed to the expansion and maintenance capital plans of those customers, specifically in the retail, leisure and travel sectors, which are also affected by changes in consumer spending.

Latest Insights

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Consumer | Flash note

Topps Tiles — Outperforming weak market in Q124

Consumer | Update

Topps Tiles — Early delivery

Sector

Consumer

Equity Analyst

Russell Pointon

Russell Pointon

Director, Consumer

Key Management

  • Paul Forman

    Chairman

  • Robert Parker

    CEO

  • Stephen Hopson

    CFO

Balance Sheet

Forecast net cash (£m)

23.7

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (0.6) (11.3) (7.8)
Relative (3.6) (13.6) (13.8)
52 week high/low 56.4p/43.1p

Financials

Topps Tiles’ (TPT’s) Q124 update showed that trading was a little softer towards the end of the quarter than was reported for the first eight weeks (ie at the time of the FY23 results). However, the end of Q124 had a more challenging comparative than the start of the period since TPT enjoyed stronger sales as Q123 progressed. The ongoing revenue weakness is not surprising given the weak repairs, maintenance and installation market backdrop, but management believes the strength of its offer and customer service has translated into further market share gains in the period. Our forecasts for FY24 and FY25 are unchanged.

Y/E Oct Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2022A 247.2 44.2 15.9 6.15 7.2 2.0
2023A 262.7 42.0 13.8 4.59 9.7 2.1
2024E 267.0 40.9 13.2 4.63 9.6 2.1
2025E 280.1 42.8 14.7 5.37 8.3 2.1

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