Topps Tiles bullish on prospects despite Brexit confidence slump

Topps Tiles has moved to reassure skittish investors worried about a Brexit-induced slump in consumer confidence, striking a bullish tone for the year ahead.

The tiles seller’s shares have plunged more than 40% since the EU referendum on fears that uncertainty sparked by the result had rattled consumers.

Today boss Matt Williams admitted confidence had deteriorated in recent months but insisted opportunities remained for the retailer. For example, customers choosing to put off buying a new home could renovate their existing property instead.

“We’d all prefer if the market improved but no doubt there are opportunities if we continue to see tougher markets,” Williams said.

His comments came as Topps reported record sales of £215 million, up 1.3% year-on-year, and a 17.6% rise in pre-tax profit to £20 million in the year to October 1. The final dividend is up 11% to 2.5p.

Same-store sales in the first eight weeks of its new financial year were up by 0.8% versus a 3.3% rise last year, which Williams described as “robust” given the current circumstances.

The shares ticked up by 2.25p to 89.18p.