Topps Tiles Plc. (TPT.L), a British tiles company, on Tuesday recorded a pre-tax loss for the full year, amidst a decline in revenue, reflecting lower volumes, which remained well below pre-pandemic levels.
The company noted that 2024 has been a challenging year for the UK tile industry and many businesses facing into the wider repairs, maintenance, and improvement sector. Following a period of strong growth during the two years after the pandemic, market activity started to decline in 2023 and this momentum accelerated in 2024.
For the 12-month period to September 28, the company posted a pre-tax loss of 16.232 million pounds, compared with a profit of 6.815 million pounds in the previous year.
This reflects 19.4 million pounds non-cash impairment, primarily of right-of-use assets, and 3.1 million pounds expense relating to the purchase of remaining Pro Tiler shares.
Adjusted profit before tax was 6.3 million pounds, lesser than 12.5 million pounds last year.
Net loss stood at 13.033 million pounds or 6.63 pence per share as against last year's profit of 3.206 million pounds or 1.61 pence per share. Excluding items, earnings were 2.39 pence per share, lower than 4.49 pence per share a year ago.
Operating loss was 11.417 million pounds, versus a profit of 11.106 million pounds in 2023.
Revenue was 251.756 million pounds, lower than prior year's 262.714 million pounds.
The company will pay a final dividend 1.2 pence per share on January 30, 2025. The final dividend will bring the total dividend for the year to 2.4 pence per share, lower than prior year's 3.6 pence per share.
Looking ahead, Rob Parker, CEO of Topps Tiles, said: "The start of the new financial year has seen a return to modest sales growth for the Group, helped by weaker prior year comparatives and the continued strength of our trade offer. Trading in the first eight weeks of the new financial year has seen the Group return to modest levels of sales growth. Group sales were up 1.2% year on year excluding CTD, with like-for-like sales in Topps Tiles down 0.4%."
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