Q3 Trading Update

Topps Tiles Plc ("Topps Group", or the "Group"), the UK's leading tile specialist, announces a trading update for the 39-week period ended 29 June 2024.

The trading environment in the period was broadly unchanged from that described in the Group's Interim Results on 21 May 2024. Total Group sales in the third quarter were 6.9% lower year-on-year, and in the 39-week period, Group sales were 6.2% lower than the prior year. As stated in the Interim Results, we believe that the UK tile market is down 10-15% year-on-year, with the Group continuing to take market share.

Market conditions have remained challenging overall, with subdued demand in the domestic Repair, Maintenance and Improvement ("RMI") sector, especially for bigger ticket projects. Like-for-like sales1 in Topps Tiles were 9.7% lower year-on-year in the third quarter, similar to the 9.2% decline seen in the first half, however sales levels in Topps Tiles stabilised through the quarter. Sales to trade customers continued to be more resilient than sales to homeowners.

Online Pure Play continues to perform well with significant year-on-year sales growth as the Group continues to grow market share. Trading conditions in the commercial market are challenging although Parkside remains in a marginally profitable position year to date following the restructuring actions taken last year.

Positive macroeconomic data on inflation, real wage growth, improving consumer confidence and increased activity in the housing market provides some confidence in a cyclical recovery, and the Group is well-positioned to benefit from this due to its growing market share, leading brands, specialist expertise and world-class service, underpinned by its strong balance sheet. However, with this recovery yet to feed through into our end markets, the Group is progressing the self-help opportunities described in the Interim Results statement as part of its 'Mission 365' goal. Work on the delivery of these plans, which will deliver significant medium-term benefits to both sales and profits, is continuing at pace, and further updates will be provided in future statements.

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