Topps Tiles investor stages revolt as shares nose dive
A major investor in Topps Tiles has staged a revolt against the retailer as its share price continues to nose dive towards a new historic low.
Private equity firm MS Galleon used its near 30 per cent stake to vote against the company’s remuneration report at this year’s annual general meeting, resulting in 40 per cent of votes cast against the report.
Nearly the same number of votes were also cast against the reappointment of outgoing chief executive Robert Parker and remuneration committee chair, Diana Breeze, as a non-executive director.
Despite the large number of votes in the against column, all three motions passed.
Topps Tiles’ AGM comes as its share price continues a decline which dates back to September last year.
Shares in the Leicester-headquartered company are now trading at around 35p, well down from the 81p value they commanded a month before the Covid-19 pandemic.
Since the pandemic, shares in Topps Tiles have never been as high as the 74.9p price they achieved in May 2021.
In November, the business revealed its group revenue fell from £262.7m to £251.7m in the 12 months to 28 September, 2024, while it slumped to a pre-tax loss of £16.2m.
Topps Tiles had previously reported a pre-tax profit of £6.8m in its prior year.
Because of its declining financial performance, the firm’s remuneration committee slashed the bonuses of its executive directors to just 11 per cent of their salaries.
However, Topps Tiles’ annual report revealed that its CEO was handed a two per cent pay rise to £450,007 from October 2024.
Its chief financial office also received a pay rise to £280,500 from the same date.
Earlier this month, City PM reported that Robert Parker was to step down as chief executive towards the end of 2025.
It was also revealed that Topps Tiles had enjoyed a return to sales growth during the Golden Quarter driven by trade demand.
In response to the AGM votes, the company said: “The board would like to thank shareholders for their engagement and support ahead of the AGM and throughout the year.
“Whilst the majority of the resolutions were passed with majorities in excess of 50 per cent, the board notes that resolution three, resolution seven, resolution nine and Resolution 13, passed with a majority of less than 80 per cent.
“In accordance with provision four of the UK Corporate Governance Code, the board confirms that it will consult and engage with the relevant shareholders to understand and discuss their views with respect to these resolutions.
“An update will be provided within six months of the AGM, in accordance with the code.”