Topps Tiles Q4 trading update: record sales, rising like-for-like growth, and momentum into 2026
Topps Tiles has delivered another record year for sales, with the Group reporting approximately £265 million of adjusted sales, up 6.8% year-on-year for the 52 weeks to 27 September 2025. Including CTD, total Group sales were around £296 million, up 17.7% year-on-year. That makes 2025 a milestone as the company moves towards its “Mission 365” target of £365 million in total Group sales and an adjusted profit before tax (PBT) margin of 8% to 10% in the medium term.
Importantly, trading improved across every part of the Group in the second half, and Topps expects to end the year in a net positive cash position. Adjusted profit is guided to be within market expectations at £8.3 million to £9.2 million.
Headline numbers at a glance
| Metric | FY25 | Change |
|---|---|---|
| Adjusted Group sales (excludes CTD) | c. £265 million | +6.8% year-on-year |
| Total Group sales (including CTD) | c. £296 million | +17.7% year-on-year |
| Topps Tiles like-for-like sales – H1 | +3.0% | – |
| Topps Tiles like-for-like sales – H2 | +7.7% | – |
| Topps Tiles like-for-like sales – Full year | +5.3% | – |
| Adjusted PBT guidance (market expectations) | £8.3 million to £9.2 million | In line |
| Year-end net cash | Positive (exact figure not disclosed) | – |
Notes on definitions:
- Adjusted sales are stated before year-end accounting adjustments (such as revenue recognition, loyalty scheme accounting and customer returns provisions) and exclude CTD in FY24 and FY25.
- Like-for-like (LFL) compares sales from Topps Tiles stores trading more than 52 weeks, plus online through Topps Tiles’ digital channels, against the same period last year.
- Adjusted gross margin in FY25 excludes CTD.
Like-for-like acceleration and margin mix: what stood out
The sharp improvement in like-for-like growth in H2 to 7.7% (from 3.0% in H1) is the star of the update. That takes the full-year LFL to 5.3% and confirms the second half was notably stronger. Management also expects higher adjusted gross margins in H2 than H1, which suggests better pricing, product mix or sourcing benefits coming through in the core business.
There is a counterweight: costs rose in H2 due to increases in the National Living Wage, National Insurance Contributions and performance-related pay (the latter tied to stronger trading). The net effect is that adjusted profit for the year is expected to land within the market’s £8.3 million to £9.2 million range rather than ahead of it. A good outcome, but not a beat.
Mission 365 progress: getting closer on sales, margin journey to come
Including CTD, total Group sales reached approximately £296 million this year, moving closer to the £365 million target under “Mission 365”. The margin side of that mission – an adjusted PBT margin of 8% to 10% – is not disclosed today. Given profit is described as in line with expectations and margin commentary is directional only (H2 better than H1), the heavy lifting on profitability still lies ahead.
Still, the Group highlights four record sales years out of the last five and a broad-based improvement across Topps Tiles, Parkside, Online Pure Play and CTD in H2. That breadth matters: it reduces reliance on any single channel and supports the medium-term plan.
CTD and the CMA: disposals nearly done, strategic rationale intact
CTD, acquired on 19 August 2024, remains strategically important for building relationships with larger contractors, commercial partners and housebuilders. Of the four CTD sites required for disposal by the Competition and Markets Authority (CMA), two were completed in September with two more expected imminently. Once they are finished, the CMA’s involvement will formally conclude.
In plain terms, that removes a regulatory overhang while preserving the strategic intent behind CTD – expanding the Group’s presence in larger-scale B2B markets. The update also flags continued growth in Pro Tiler Tools and a stronger business-to-business sales focus, supported by a modernised trade digital experience.
Cash and balance sheet: a welcome positive
The Group expects to finish the year in a net positive cash position. While the exact cash figure is not disclosed, this is a reassuring marker given the investment cycle and the recent CTD acquisition. For a retailer with 297 nationwide Topps Tiles stores, a London commercial showroom, the CTD estate and nine customer-facing websites, positive cash at year-end strengthens flexibility heading into 2026.
Leadership transition: new CEO designate, CFO search underway
Alex Jensen joined as CEO designate on 15 September and will work alongside Rob Parker through year-end to ensure an orderly transition. The process to recruit a permanent CFO is well advanced, with an announcement expected before the end of the calendar year. Smooth execution here will matter, given the operational push behind Mission 365 and the B2B growth agenda.
What to watch next: December results and key proof points
Topps will announce preliminary results for the year ended 27 September 2025 on 2 December 2025. Here is what I will be looking for based on today’s update:
- Final gross margin detail for H2 vs H1, and any commentary on input costs and pricing.
- Confirmed adjusted PBT within the £8.3 million to £9.2 million range and any colour on start-of-year trading in FY26.
- Year-end net cash figure and working capital movements.
- Update on completion of the remaining two CTD site disposals and post-CMA integration plans.
- Evidence of traction in B2B – larger contractors, commercial partners and housebuilders – and continued growth in Pro Tiler Tools.
- Progress metrics on the modernised trade digital experience and Online Pure Play performance.
My take: positive momentum, broad-based strength, profit “in line” the caveat
This is a bullish trading update on sales: record adjusted Group sales of about £265 million (ex-CTD), record total Group sales of around £296 million including CTD, and a clear acceleration in like-for-like growth in H2 to 7.7%. The breadth of improvement across Topps Tiles, Parkside, Online Pure Play and CTD is a real positive, and the shift towards B2B, plus Pro Tiler Tools growth, adds resilience.
The two watch-outs are margin and costs. Adjusted gross margins improved in H2, but higher wage, National Insurance and performance-related pay costs in the half offset some of that benefit. With adjusted PBT guided within, not above, market expectations, this reads as strong top-line momentum with disciplined – but not yet transformative – bottom-line progress.
Overall, the direction of travel is favourable. CTD regulatory tidy-up is close to done, cash is positive, operational initiatives are landing, and the company has racked up four record sales years out of the last five. Execution in FY26 now turns to converting that momentum into margin expansion as Topps pushes on towards Mission 365.
