UK’s Topps Tile Sees Downturn as Good for Business

London, England, September 27, 2007--Tile and flooring group Topps Tiles says it is well placed to withstand any housing market slowdown as customers invest in the home rather than moving, according to the Liverpool Daily Post.

The group said yesterday it expected like-for-like sales in the UK to grow 4.5% in the year to September 30, with revenues set to rise by more than 11%.

Chief executive Nick Ounstead said he also expects to have grown market share in the period as Topps’ wide choice and customer service helped it combat growing competition from do-it-yourself shops.

He said the group should perform well in a tougher housing market as people who put off moving homes often opt to make improvements or extensions to their homes.

Topps, which is the UK’s largest tile specialist, expects annual pre-tax profits across the group to slip slightly from £39.1m in 2006 to £38m in the current year, after an interest charge following a share buy-back last year.

The company, which operates the Topps Tiles and the cheaper Tile Clearing House brands, hit its target of opening 30 new stores in the UK during the year and now has a total of 302 sites. It said it is looking to open around 24 new sites in the next year.

It also has 20 stores in Holland after it opened five new sites in the year. Mr Ounstead said the group is looking to grow its Dutch business to around 80 stores.