Topps Tiles — Improving revenue growth through Q225

Topps Tiles’ H125 trading update indicates improving volume and revenue trends through Q225, with an exit rate of high-single-digit revenue growth in March 2025. There is a clear message that the Mission 365 initiatives to grow revenue (category extensions, greater trade and digital sales) are coming through against a subdued backdrop for the homeowner. In addition to good revenue growth, there is positive news on gross margin, helped by pricing, mix and discount structures to counter the dilution from growing trade sales. Our FY25 estimates are unchanged but they need the March trends to continue in order to deliver the required c 7% underlying revenue growth excluding the contribution from CTD Tiles in H225. The statement highlights there is good progress in identifying potential candidates to succeed Rob Parker as chief executive, with a high degree of interest expressed.