(RTTNews) - Tile and wood flooring company Topps Tiles Plc (TPT.L: News ) Tuesday reported a sharp decline in pre-tax profit for the full year 2009, reflecting lower revenues across all business segments and higher distribution and other operating costs. Separately, Topps Tiles also announced its intention to place up to 17.11 million new ordinary shares of 3 1/3 pence each in capital of the company with existing and new institutional shareholders.

For fiscal 2009, the UK-based company's profit before taxation was GBP 4.90 million compared with GBP 27.72 million in the same period prior year. On an adjusted basis, pre-tax profit slumped to GBP 16.3 million from GBP 29.5 million in the year-ago period.

Profit for the period attributable to shareholders plummeted to GBP 1.72 million or 1.00 pence per share from GBP 16.35 million or 9.55 pence per share a year ago. Adjusted profit for the year was GBP 11.33 million versus GBP 19.08 million in the 2008-year period.

Topps Tiles' revenues for the full year declined 10.6% to GBP 186.06 million from GBP 208.08 million in fiscal 2008, with like-for-like revenue for the period showing a decline of 13.5%, compared to a decline of 5.4% last year.

On a segmental basis, revenues from Topps were GBP 158.64 million versus GBP 175.31 million, revenues from TCH fell to GBP 20.15 million from GBP 23.98 million in the prior year, and Topps Floorstore segment generated revenues of GBP 7.27 million compared to GBP 8.80 million a year earlier.

During the year, distribution expenses rose to GBP 69.17 million from GBP 66.14 million, and other operating costs for the year were GBP 7.99 million versus GBP 7.02 million in the same period last year. Administrative expenses slipped to GBP 7.04 million from GBP 8.08 million, and sales and marketing costs were GBP 2.60 million compared with GBP 6.17 million in the previous year.
In the 2009-year period, the company had one-time charges of GBP 3.05 million with regard to impairment of plant, property and equipment, and one-time restructuring and other one-off costs amounting to GBP 2.16 million.

Gross margin for the year was 58.3% as compared with 61.8% in the comparable period prior year. Topps Tiles stated that retail environment continues to be challenging and the outlook for consumer confidence remains uncertain.

In order to reduce net debt and further improve its financial flexibility, the board said it has decided, consistent with the last financial period, not to pay a final dividend for the financial period.

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