Topps Tiles hits back after major shareholder calls out ‘costly blunders’
Topps Tiles has hit back after a major shareholder called for an overall of its top team and strategy following a series of “costly blunders”.
The London-listed company has issued a statement in the wake of the managing director of Austrian investment company MS Galleon, Piotr Lipko, writing to Topps Tiles’ chair Paul Forman last week arguing that the firm had shown a “complete failure” to adapt to the changing retail landscape.
However the business, which is headquartered near Leicester, has come out this morning stressing its long-term commitment to digital growth strategies.
Following the firm’s full-year results on 26 November, Topps Tiles told markets today that it will “continue to take market share” as it engages with “larger shareholders on a regular basis”.
The firm revealed last week that its pre-tax profit for the year nearly halved, down to £6.3m from £12.5m the year prior.
Full year revenue was at £248.5m for the year ending 28 September, down from £262.7m in 2023.
Recovery for the business, which has battled through a “weaker” market amid homeowner reluctance to DIY, will be difficult.
Topps Tiles also warned that the post-Budget hike in National Living Wage and employers’ National Insurance Contributions (NICs) will add £4m to its costs.
However, Topps Tiles chairman Paul Forman said its “further expansion” to a digital strategy will be at the core of its many growth initiatives moving forward.
Over the last five years, the firm said it has invested heavily in “omni-channel” operations, resulting in a total of 18 per cent in revenue coming from online.
He added: “Our latest results show that we continue to take market share, consistently outperforming the wider tile market despite very challenging trading conditions.
“We believe this demonstrates the effectiveness of our strategy, which has the full support of the Board.”