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Topps Tiles predicts profits after UK DIY boom

Shares in the company surged after it told investors that like-for-like sales had jumped by 15.5% over the six weeks to August.

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Topps Tiles said it was boosted by ‘strong’ home improvement demand (Topps Tiles/PA)

Topps Tiles said it was boosted by ‘strong’ home improvement demand (Topps Tiles/PA)

Topps Tiles said it was boosted by ‘strong’ home improvement demand (Topps Tiles/PA)

Topps Tiles said it expects to post a profit for the financial year after it was boosted by a boom in DIY activity since coronavirus hit the UK.

Shares in the company surged after it told investors that like-for-like sales had jumped by 15.5% over the six weeks to August, compared to the same period last year.

It said it was boosted by “strong” home improvement demand, which buoyed customer activity from April lows, around the peak of the pandemic.

Our response to the pandemic has strengthened the business and fundamentally improved our liquidity position ...Rob Parker, Topps Tiles

But it said online sales had now moderated from peaks seen in April and May as more customers had ventured to stores.

Topps Tiles said that orders still being processed by the company were “significantly ahead of the prior year”, meaning it now expected to report “a modest level of adjusted pre-tax profit” for the year to September 26.

Sales in its commercial business remain “subdued” but had started to improve in recent weeks.

Rob Parker, chief executive of the company, said: “I am pleased with how well the business has navigated the crisis to date and feel that we are well positioned for whatever comes next.

“Our colleagues have responded brilliantly over the last five months and I would like to once again place on record my thanks for their dedication and endeavour.

“Our response to the pandemic has strengthened the business and fundamentally improved our liquidity position, providing further flexibility and putting us in a strong position both to benefit from the recovery in our markets and to meet any future challenges.”

Shares in the company moved 13% higher to 48.8p in early trading on Thursday.

PA