Topps Tiles swings to a loss and announces plan to reopen all stores next month
Topps Tiles has outlined plans to reopen all of its stores by the end of next month, as the retailer announced it swung to a loss in the first half of the year.
The tile retailer reported a loss before tax of £4m in the 26 weeks to 28 March, compared to a profit of £5.2m the previous year, as the coronavirus crisis exacerbated an already challenging trading environment.
Group revenue fell 3.7 per cent from £110.3m in 2019 to £106.2m.
Topps Tiles will not pay an interim dividend and warned that a full year payout was also unlikely due to the losses expected from store closures during the coronavirus lockdown.
The company, which began reopening some stores last month, is aiming to have a total of 250 branches open for business by the end of May.
All Topps Tiles stores are expected to be open by the end of June, it said this morning.
The retailer has secured a £10m loan from its lenders backed by the government’s Coronavirus Large Business Interruption Loan Scheme.
At the peak of the crisis around 90 per cent of the company’s employees were furloughed through the government’s Coronavirus Job Retention Scheme, and it has also benefited from business rates relief and VAT deferral.
Chief executive Rob Parker said: “Covid-19 has created a complex and extremely challenging trading environment and I am pleased by the way the group has responded to this crisis so far.”
He added: “Having taken steps to strengthen our financial liquidity over recent weeks we believe our resources are sufficient to address the current challenge.
“Looking further ahead, as the UK’s leading tile specialist, Topps remains well-positioned as the economy begins to recover.”