Topps Tiles warns on profits, shares slide

(Sharecast News) - Topps Tiles warned on profits on Wednesday, sending shares in the retailer sharply lower, after soaring temperatures compounded already tough market conditions. Updating on third-quarter trading, the tile specialist said group revenues had fallen by more than expected, down 1.8% to £75.6m in the 39 weeks to 27 June. Like-for-like revenues were flat.

Topps Tiles said trading had been affected by prior year store closures, "challenging" market conditions - with macroeconomic concerns leading to greater demand for lower margin products - and the recent heatwave temporarily halting work among some housebuilders and traders.

As a result, the FTSE 250 firm now expects annual adjusted pre-tax profit to come in "above £6.5m", sharply down on last year's £9.2m. At the interim results, Topps Tiles had forecast "modest" profit growth for the full year.

The stock had fallen 8% to 33p by 0930 BST.

Alex Jensen, chief executive, said: "Topps continues to outperform the wider market despite weaker consumer sentiment and an increased focus on lower priced products. We're making significant strategic progress across our priorities and the self-help actions we are taking to support profitability are working and will position the business for long-term sustainable growth."

See latest RNS on Investegate