Topps Tiles (TPT.L), the UK’s tile specialist, has reported a record year of sales in the year ending September 2025, boosted by a 28% increase in trade sales but its share price remained in the red.
The company said it had delivered a market-beating performance and continued to move toward its “Mission 365” target, achieving sales of £295.8m and reaching 40% of its revenue growth goal.
Trade sales rose 28.3% year-over-year, or 14.3% excluding CTD, and now represent around 75% of the total group revenue. Digital penetration excluding CTD increased to 21.1%, up from 18.5% in the prior year.
Adjusted revenue rose 6.8% to £265.4m, with growth reported across all parts of the business. Adjusted profit before tax increased 46% to £9.2m, and adjusted EPS grew 43.5% to 3.43 pence.
The board proposed a final dividend of 2.1 pence, bringing the full-year dividend to 2.9 pence, an 85% payout ratio and a 20.8% increase on last year. The company said the dividend was supported by a solid balance sheet, with adjusted net cash of £7.4m at year end and a £30m banking facility committed until October 2027.
Statutory revenue rose 17.5% to £295.8m, including £30.3m of sales from CTD. Statutory profit before tax was £8.3m, compared with a £16.2m loss in FY24, reflecting CTD-related costs, write-backs of IFRS 16 impairments and management transition expenses.
Adam Vettese, market analyst at eToro said: “Topps Tiles has delivered exactly the sort of bounce‑back investors wanted to see: record sales, a near‑50% jump in adjusted profits and a return to the black after last year’s loss signal that the self‑help story is working. Growth is broad‑based, the trade channel is powering ahead, digital is gaining share and the group is steadily marching towards its Mission 365 revenue and margin ambitions, all while supporting a growing dividend.
“However, the market reaction underlines that this is still a cyclical, consumer‑exposed name. Management is candid that early year trading has softened as weaker confidence hits discretionary home improvement spend, and the shares sold off sharply this morning, reminding investors that earnings momentum could be bumpy from here.”
The company stated that the CMA’s investigation into CTD Tiles has been concluded, resulting in the closure of four stores. Three disposals have been completed and the fourth is imminent. CTD now operates 22 stores, with integration complete, growth plans in place and the business expected to return to profit in FY26.
Topps also acquired the Fired Earth brand, its intellectual property, website and around £2.5m of stock for £3m in November 2025, adding what it described as a complementary premium brand to the group.
Leadership changes will see Alex Jensen take over as chief executive on 8 December following the retirement of Rob Parker. Caroline Browne will join as CFO in spring 2026, moving from Watches of Switzerland Group. She has previously held senior finance roles at Next (NXT.L) and Boots.