Topps Tiles PLC reported on Wednesday said it was on target to meet its annual profit guidance, following a strong sales performance in its third quarter.

Topps Tiles, a Leicestershire-based retailer, said its sales remained strong in an update on its first three quarters ended July 1, with total sales growth for the year-to-date being 7.6% year-on-year.

The company said like-for-like sales in its third quarter were 2.5% higher year-on-year, and 3.7% on a year-to-date basis.

Topps Tiles said that it has continued to improve sequentially quarter-on-quarter, with inflationary pressures on the cost of goods and shipping costs reduced.

‘Operating costs and profits remain in line with our expectations,’ said the company.

Topps Tiles said it remains confident that its adjusted pretax profit in the second half of its financial year would be materially higher than the first half. It expects to perform in line with market expectations for the year as a whole.

Current market expectations for adjusted pretax profit in financial 2023 are within a range of £11.3 million to £12.3 million, with consensus at £11.8 million, Topps Tiles said.

‘The group remains well positioned for future growth in the important business-to-business market, which is almost as large as the domestic repair, maintenance, & improvement market,’ the company said.

Chief Executive Officer Rob Parker commented: ‘Looking ahead, we are confident that our core strengths of leading brands, world class customer service specialist expertise and a strong balance sheet will enable us to continue to deliver value for all stakeholders.’

Shares in Topps Tiles were up 2.1% at 49.50 pence in London on Wednesday morning.

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