Topps Tiles (TPT.L), the UK’s tile specialist, has announced a record year of sales for the year ending September 2025, primarily driven by a 28% surge in trade sales. Despite this impressive performance, the company’s share price remained subdued in early trading.
The company reported sales of £295.8 million, achieving 40% of its revenue growth target as part of its “Mission 365” initiative. This performance outpaced market expectations, with trade sales accounting for approximately 75% of total group revenue. Excluding CTD, trade sales increased by 14.3% year-over-year, while digital penetration also saw a rise, climbing to 21.1% from 18.5% the previous year.
Adjusted revenue rose 6.8% to £265.4 million, with growth evident across all business segments. Adjusted profit before tax surged by 46% to £9.2 million, and adjusted earnings per share improved by 43.5% to 3.43 pence. In light of this strong performance, the board proposed a final dividend of 2.1 pence, bringing the full-year dividend to 2.9 pence, reflecting an 85% payout ratio and a 20.8% increase from the prior year.
The company also highlighted a robust financial position, reporting adjusted net cash of £7.4 million at year-end and a £30 million banking facility secured until October 2027. Statutory revenue increased by 17.5% to £295.8 million, which includes £30.3 million in sales from CTD. Statutory profit before tax was recorded at £8.3 million, a turnaround from a £16.2 million loss in the previous fiscal year, largely due to costs related to CTD, write-backs of IFRS 16 impairments, and management transition expenses.
Adam Vettese, market analyst at eToro, commented, “Topps Tiles has delivered exactly the sort of bounce-back investors wanted to see: record sales, a near-50% jump in adjusted profits and a return to the black after last year’s loss signals that the self-help story is working. Growth is broad-based, the trade channel is powering ahead, digital is gaining share, and the group is steadily marching towards its Mission 365 revenue and margin ambitions, all while supporting a growing dividend.”
However, Vettese noted that the market’s reaction underscores Topps Tiles’ status as a cyclical, consumer-exposed entity. Management acknowledged that early-year trading has softened, attributed to declining consumer confidence affecting discretionary home improvement spending. This led to a sharp sell-off in shares on the day of the announcement, a stark reminder to investors that earnings momentum may experience fluctuations moving forward.
Additionally, the company reported the conclusion of the CMA’s investigation into CTD Tiles, which resulted in the closure of four stores. Three disposals have been finalized, with the fourth expected to follow soon. CTD now operates 22 stores, with integration complete and growth plans underway, positioning the business to return to profitability in FY26.
In a strategic move to enhance its brand portfolio, Topps Tiles acquired the Fired Earth brand, along with its intellectual property, website, and approximately £2.5 million in stock for £3 million in November 2025. This acquisition is viewed as a complementary addition to the group’s premium offerings.
Leadership changes are on the horizon, with Alex Jensen set to take over as chief executive on December 8 following the retirement of Rob Parker. Caroline Browne will join as CFO in the spring of 2026, transitioning from Watches of Switzerland Group, where she held senior finance roles, including at Next (NXT.L) and Boots.
As Topps Tiles continues to navigate challenges and capitalize on growth opportunities, its focus on trade sales, digital expansion, and strategic acquisitions positions the company for further development in an evolving market landscape.
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