Topps Tiles is the market-leading specialist retailer/distributor of wall and floor tiles, and associated products such as tools, grouts and adhesives, to its retail, trade and commercial customers in the UK.
Changes in consumer confidence and the health of the housing market are important indicators for the outlook on spend on residential repairs, maintenance and improvement. With increasing exposure to the corporate market, TPT is also exposed to the expansion and maintenance capital plans of those customers, specifically in the retail, leisure and travel sectors, which are also affected by changes in consumer spending.
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Paul Forman
Chairman
Robert Parker
CEO
Stephen Hopson
CFO
Forecast net cash (£m)
20.7
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (5.7) | (5.7) | (17.0) |
Relative | (4.5) | (9.0) | (25.0) |
52 week high/low | 56.4p/40.5p |
Topps Tiles’ (TPT’s) H124 results showed the effects of the general market softness of spend on repairs, maintenance and improvement, as evidenced by other companies and external data. Of more importance is TPT’s updated strategy, which includes targeting new markets and further/better leverage of existing brands, and ‘medium-term’ financial goals, the most notable being an indicated more than quadrupling of adjusted PBT from our FY24 estimates. Management points to more encouraging forward indicators for customer spend (including mortgage approvals and consumer confidence), albeit current trading remains weak. Our forecasts are under review.
Y/E Oct | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (fd) (p) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2022A | 247.2 | 44.2 | 15.9 | 6.15 | 6.6 | 1.8 |
2023A | 262.7 | 42.0 | 13.8 | 4.59 | 8.9 | 1.9 |
2024E | 249.6 | 35.6 | 7.9 | 2.70 | 15.1 | 2.3 |
2025E | 263.8 | 40.0 | 11.9 | 4.35 | 9.4 | 2.0 |