Topps Tiles (TPT) H1 2026 earnings summary

Executive summary

• Mission 365 targets 50% revenue growth over 2024 baseline and 8% PBT margin, with 40% of revenue and 12% of profit growth ambitions achieved by 2025; significant progress made on profitability and margin expansion through self-help initiatives.

• Outperformed a declining RMI market, with Group trade (ex CTD) up 4.1% and digital mix rising to 21%; new categories grew by 7%.

• CTD losses more than halved to £0.4m, on track for H2 profit; Fired Earth profitable within four months of acquisition and expanding internationally.

• Implemented major cost initiatives, including store closures and productivity improvements, targeting sustainable profit growth.

• Extended brand reach, consolidated Tile Warehouse, and launched new digital tools and CRM integration.

Financial highlights

• Adjusted revenue grew 11.6% to £142.6m, driven by CTD inclusion and digital/trade performance; pro forma revenue flat year-on-year (-0.2%), outperforming a market decline of 2.5%.

• Pro forma gross margin up 1.6ppts YoY to 53.4%, driving a 2.9% increase in gross profit.

• Pro forma adjusted operating profit up 17.3% YoY to £5.2m; PBT flat at £2.2m due to higher interest costs.

• Adjusted EPS at 0.83p (down 25.9% YoY); interim dividend of 1.0p per share declared.

• Net debt of £3.1m at half-year, with £30m RCF facility and robust balance sheet.

Outlook and guidance

• Modest full-year PBT growth expected, supported by cost-saving initiatives weighted to H2; profit and revenue expected to be H2-weighted.

• Self-help measures to add c.£3m benefit in H2 and c.£6m annualised; inflationary cost pressures of £0.8m anticipated.

• Gross margins anticipated to remain broadly in line with H1; profit growth in line with market expectations, assuming stable macro conditions.

• Like-for-like revenue in Topps Tiles up 0.6% in first seven weeks of H2; CTD up 3.0%.