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Highlights
- The company’s online pure play businesses posted 38.3% year-on-year sales growth in H1 FY24
- The company reported a higher net margin of 2.4% in H2 FY23 versus 0.5% in H1 FY23
- In February, the company paid a final dividend of GBX 2.4 per share, marking an annualised dividend yield of approx. 8.50%
Topps Tiles PLC (LSE: TPT) is an FTSE All-Share index-listed retailer of tiles. With more than 300 stores in the United Kingdom, the company supplies tiles and related accessories to both trade and retail customer base.
The company’s online pure play businesses, such as Pro Tiler and Tile Warehouse, exhibited strong trading performance, achieving a noteworthy 38.3% year-on-year sales growth in the first half of fiscal year 2024. The group is in the final stages of acquiring the remaining 40% stake in Pro Tiler Limited. It has confirmed plans to retain the co-founders, thereby strengthening its dedication to nurturing and enlarging the brand.
In the second half of FY23, the company demonstrated improved profitability. EBITDA margin of the group was 14.8% in H2 FY23 as compared to 12.4% in H1 FY23. The company reported a higher net margin of 2.4% in H2 FY23 versus 0.5% in H1 FY23.
Overall, the group’s revenue demonstrated a year-over-year growth of 6.3% in FY23. It was driven by increased revenue from the online pure play business which was due to improved demand and increased pricing. Similarly, FY23’s profit surged by around 3% compared to the previous year.
Recent business update
On 02 February 2024, the company paid a final dividend of GBX 2.4 per share, marking an annualised dividend yield of approx. 8.50% as per the closing of the stock price on 08 May 2024.
Company outlook
According to TPT, various factors such as a softer market, timing of holiday pay accrual, and seasonally elevated energy usage will affect group profitability in the first half of the year. It anticipates profits for 2024 to be skewed towards the latter half. The group intends to address its new objectives and prospects for profit growth during the Interim results presentation on May 21, 2024.
Top 10 shareholders
Around 63.96% of the total shareholding in the company is held by the top ten shareholders. MS Galleon AG and Aberforth Partners LLP hold maximum stake in the company at ~29.78% and ~14.69%, respectively.
Stock performance
The stock price of TPT has experienced a downside of ~2.73% over the last three months and ~11.74% over the last six months. The stock’s 52-week low and 52-week high stand at GBX 38.67 & GBX 57.80, respectively. It is currently trading below the average of its 52-week high-low.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 08 May 2024. The reference data in this report has been partly sourced from EODHD/Others.
