'Improve not move' wins for Topps Tiles

Tile and wood flooring firm Topps Tiles said recent sales gave it "cause for confidence" as it benefits from householders' decision to "improve not move".

The group, which trades from 312 outlets across the UK, said like-for-like sales in the first seven weeks of its new financial year were up 3.2 per cent on the previous year.

The improved sales represent a turnaround after a decline in like-for-like revenues over the summer as consumers delayed home improvements amid the uncertainty surrounding the general election and emergency budget.

Home furnishing businesses - such as wallpaper and fabric firm Walker Greenbank - have put decent sales down to homeowners choosing to improve their homes rather than moving house.

Pre-tax profits before exceptional items were 12.4 million in the year to October 2, up from 9.9m the previous year. The firm also resumed its final dividend at 1p per share.

Chairman Barry Bester said: "The business is performing in line with expectations and current trading figures also offer cause for confidence."

Bester said, while the firm was aware government spending cuts could have an impact on consumer demand, it remained confident its business was well-positioned for future growth.

The company, which hopes to increase the number of its stores to potentially more than 400, plans to open ten stores in the coming year after opening 12 in the last 12 months.

To support the plans, Topps is building a 3m warehouse at its Leicestershire headquarters.