Topps Tiles (TPT) hits record sales. Is this small cap a good buy?

October 07, 2021 07:17 AM BST | By Suhita Poddar
Follow us on Google News:


  • British tile retailer Topps Tiles’ FY 2021 revenues surged to a record of £227.5 million for the 53-week period ending on 2 October
  • The group now forecasts its profits for FY 2021 to be slightly higher than analyst estimates of £13.6 million

UK-based retail company Topps Tiles PLC (LON: TPT) reported record turnover in FY 2021 in its Q4 trading update.

The company’s results were boosted by a boom in the home improvements DIY sector amid the pandemic. The group also increased its FY 2021 forecasts due to this strong performance.

Topps Tiles PLC (LON: TPT) share price performance

Topps Tiles’ shares were closed at GBX 64.00, up by 2.24 per cent on 6 October 2021, while the FTSE All-Share index, which it is a constituent of, ended at 3,995.37, down by 1.20 per cent.

Topps Tiles share price and volume

(Image source: Refinitiv)

The company’s market cap stands at £122.32 million, and it has a one-year return of 37.63 per cent as of 6 October 2021.

Topps Tiles’ record FY 2021 sales results

The tiles retail company reported record revenue of £222.5 million for the 52-week comparable period in FY 2021 from £192.8 million in FY 2020.

The group’s revenues touched a record of about £227.5 million for the 53-week period ending on 2 October.

The company attributed the record sales to a boom in the home improvements products space as British citizens undertook DIY projects around their homes amid the pandemic.

Also, the company’s Q4 2021 retail sales rose to 21.7 per cent on a two-year like-for-like basis and rose by 3 per cent on a one-year like-for-like basis.

Comparatively, in Q3 2021, its 2 years like for like retail sales growth was 12.9 per cent, and 132 per cent for a one-year like-for-like basis.

The company’s commercial business sales segment rose by 15 per cent to about £8.6 million, compared to £7.5 million in FY 2020. The growth was due to several of its key markets reopening following the easing of restrictions.

Topps tiles now forecast its FY 2021 adjusted profit before tax to be marginally higher than analyst estimates of £13.6 million.

It also plans to resume dividend payouts by the end of 2021. The group plans to report its results for the 53-week period ending 2 October 2021, on 30 November.

Bottom Line

The DIY sector has witnessed a boom during the pandemic. The global DIY and home improvement market is set to reach the US$ 1 trillion mark by 2027, according to the data website Statista.

Also, DIY companies in the UK have recently witnessed increased deal activity amidst this boom.  London based online DIY and home improvement products focused retail firm Plan Hardware recently raised £2 million in its latest fundraising round. The fundraising was led by venture capital company Beringea.


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Top LSE Listed Companies