Topps Tiles hit by consumer downturn

Home improvements retailer Topps Tiles this morning warned that its half-year revenues and profits will fall below last year’s totals after “weaker than expected demand”.

In a short pre-close update ahead of its interim results, the firm said turnover for the six months to 30 March will be down 0.9 per cent to £87.4 million.

Underlying pre-tax profit is expected to be down to £4.3m from £5.6m, although the firm still expects to hit full-year profit targets.

Independent retail analyst Nick Bubb said: “The update is quite disappointing.

“Topps hopes to claw back the shortfall in the second half by cost-cutting, in order to meet full-year profit expectations, but it is hard work out there trying to sell tiles to a struggling consumer.

“Despite the new tile range at B&Q that Kingfisher was boasting about yesterday and the cold weather, the main problem seems to simply be a lack of activity and confidence in the housing market.”