Tile specialist Topps Tiles Plc has reported a decline in half year sales as well as announcing an updated strategy for growth.

According to its unaudited consolidated interim financial results for the 26 weeks ended 30 March 2024, total sales fell 5.8% to £122.8m, with a pre-tax loss of £1.5m.

Commenting on the results, Rob Parker, Chief Executive said: “Trading conditions in the first half have been challenging in a tile market which is down 20% on 2019. Against this backdrop, we are continuing to take market share, our online pure play businesses are growing strongly and the Group remains in a robust financial position. 

“Lead indicators of market activity such as mortgage approvals, consumer confidence and smaller ticket DIY spend are improving, and while we are yet to see this feed through into our customer’s spending patterns, as market leader Topps Group remains well-positioned for recovery.

“Notwithstanding the challenges of current market conditions, we believe that Topps Group has a substantial opportunity to increase sales and profitability over the medium term through our new growth strategy of Mission 365.

“Mission 365 includes the development of new digital platforms for Topps Tiles trade customers; an increase in our addressable market of 75% by entering new product areas adjacent to our core tile specialism; a drive for accelerated growth in B2B markets through a more co-ordinated Group-wide approach; and continued momentum in our high growth online pure play businesses, Pro-Tiler and Tile Warehouse. Together these initiatives represent an opportunity to grow sales to £365 million over the medium term, while delivering profit before tax margins in the range of 8-10%.”

Group sales over the first seven weeks of the second half were 7.3% lower year-on-year. Topps Tiles like-for-like sales were 10.1% lower year-on-year, with no material changes to trends seen in H1 2024.