- Topps Tiles swings to a loss in “challenging” market
- The retailer booked a GBP 4 million statutory pre-tax loss during the 26 weeks to March 28
- This compared to a GBP 5.2 million profit the prior year
By guest author Elias Jahshan from Retail Gazette
Topps Tiles swung to a half year loss after its revenue was hit by the Covid-19 crisis and also a tough trading environment before the pandemic even started.
In its trading update for the six months to March 28, the flooring retailer suffered a whopping GBP 4 million statutory pre-tax loss.
This compares to a GBP 5.2 million half-year profit the prior year.
However, statutory measures pre-IFRS 16 saw half-year pre-tax loss come in at £400,000.
Sales fell 3.7 % to GBP 106.2 million during the period and were down 6.1 % on a like-forlike basis, including week 26, when all of Topps Tiles’ stores were closed due to the lockdown.
With that particular week excluded from the numbers, like-for-like sales still fell 4.3 %, which the retailer blamed on a “challenging trading environment”.
Topps Tiles also scrapped its interim dividend and warned that it was unlikely to pay a final dividend as the coronavirus pandemic continues to impact sales.
Meanwhile, trials of new safe operating procedures commenced April 22, 2020, with 250 Topps Tiles stores currently offering a click-and-collect services amid the lockdown.
Topps Tiles said the gradual re-opening of stores was generating an improving trend, and it expected to have 250 stores fully opened by end of May, with a remaining 100 stores fully opened by the end of June.
The retailer highlighted that it had a robust liquidity position with option for further funding “through asset sales in event of extended disruption”.
Cash headroom as at March 28 stood at GBP 21.7 million, and was currently at GBP14 million.