Topps Tiles Profit Declines Less Than Expected

London, England, Nov. 24, 2009--Topps Tiles posted a better-than-expected 45-percent fall in annual profit to 16.3 million pounds but said there were signs of a return to stability in its new financial year.

Its shares have more than quadrupled over the past year on recovery hopes.

Group revenue fell 10.6 percent to 186.1 million pounds, with sales at stores open more than a year down 13.5 percent and gross margin down 3.5 percentage points to 58.3 percent.

The firm, which sells hardwood and tile, said same-store sales increased 0.5 percent in the first seven weeks of its new financial year, with Britain up 2.2 percent and the 12-store Dutch business down 42 percent.

The firm is placing up to 17 million new shares on the market to raise 15 million pounds for expansion and plugging debts.