Tile specialist Topps Tiles has announced a fifth consecutive quarter of sales growth, with its new chief executive hailing a period of significant strategic progress for the group.
Steady Sales Performance and Market Outperformance
The Leicestershire-based retailer reported a 2% increase in like-for-like sales for its core Topps Tiles brand in the first quarter, covering the period to 27 December. This steady growth helped the company navigate ongoing cost pressures. On a group level, total sales – excluding the recently acquired CTD brand – rose by 3.7% compared to the same period last year.
This performance means Topps Tiles continued to grow faster than the wider tile market, although the rate has moderated from the 5.3% like-for-like growth it achieved in the full year to 27 September. The positive trading update prompted a 2% rise in the company's share price during morning trading on Wednesday.
New Leadership and Strategic Milestones
The results coincide with the start of Alex Jensen's tenure as chief executive, who took over from long-serving boss Rob Parker on 8 December. Jensen pointed to several key achievements during the quarter that position the group for future growth.
A major development was the completion of the Competition and Markets Authority (CMA) disposal programme, a requirement following Topps Tiles' acquisition of the CTD brand from administration in 2024. The group will now operate 22 CTD outlets, reduced from an initial 31. Jensen stated that closing this process provides a solid foundation to return the CTD division to profit in the 2026 financial year.
The CTD business itself showed promising signs, with like-for-like sales increasing by 4.7% in the quarter, though it had recorded losses in the previous financial year due to costs linked to the CMA enquiry.
Acquisition of Fired Earth Assets
In another significant move, the group expanded its brand portfolio last month by acquiring the assets of failed competitor Fired Earth in a £3 million rescue deal. The Oxfordshire-based rival entered administration in October, resulting in the closure of its 20 UK showrooms and 133 job losses.
Jensen highlighted that the first quarter saw growth across all existing businesses alongside these strategic steps, which also included appointing both an interim and a permanent chief financial officer.
"We are confident of delivering another year of progress both strategically and financially," the new CEO said. The group's confidence is underpinned by a strong turnaround in profitability; Topps Tiles posted a statutory pre-tax profit of £8.3 million for the year ending September, a sharp recovery from a £16.2 million loss the previous year.
