Topps Tiles (TPT) AI Stock Analysis

• Market Cap: £74.67M
• Dividend Yield: 6.27%
• Average Volume (3M): 285.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: 6.55%
• EPS Growth: -1914.81%
• Country: UK
• Employees: 1,854
• Sector: Consumer Cyclical
• Sector Strength: 76
• Industry: Home Improvement
• EPS (TTM): 0.01
• Shares Outstanding: 196,500,900
• 10 Day Avg. Volume: 511,193
• 30 Day Avg. Volume: 285,031
• PEG Ratio: -1.33
• Price to Book (P/B): 10.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.47
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £42.00
• Price Target Upside: 10.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: ―

Topps Tiles is currently experiencing financial challenges with declining revenue and high leverage. However, stable cash flow and positive corporate events, such as sales growth and strategic acquisitions, provide a positive outlook. The technical analysis suggests stability, and a high dividend yield offers some appeal to investors. Overall, the company needs to address its profitability and leverage issues to improve its financial health.

Topps Tiles Business Overview & Revenue Model

Company Description

Topps Tiles (TPT) is a leading UK-based retailer specializing in the sale of tiles and associated products. The company operates primarily in the retail sector, offering a wide range of wall and floor tiles, as well as tiling tools, accessories, and underfloor heating solutions. With a network of stores across the United Kingdom, Topps Tiles serves both retail customers and trade professionals, providing high-quality products for various home improvement and construction projects.

How the Company Makes Money

Topps Tiles generates revenue primarily through the sale of tiles and related accessories to both retail and trade customers. The company operates an extensive network of physical stores, as well as an online platform, allowing it to reach a wide customer base. Revenue streams include direct sales from its retail outlets, online sales through its e-commerce website, and sales to trade professionals who rely on Topps Tiles for their building and renovation needs. The company benefits from partnerships with leading tile manufacturers, ensuring a diverse product offering that caters to various styles and budgets. Additionally, Topps Tiles' focus on customer service and in-store expertise helps drive repeat business and customer loyalty, further contributing to its earnings.

Topps Tiles Financial Statement Overview

Summary

Topps Tiles faces a challenging financial position with declining revenues and profitability pressures. The high leverage and low equity position present significant risks. While cash flow generation remains relatively stable, the company must address its profitability and leverage to improve its financial health.

Income Statement

Topps Tiles experienced a notable decline in revenue and profitability compared to the previous year. The company reported a negative EBIT and net income, indicating significant challenges in maintaining profitability. Additionally, gross profit margin decreased slightly, reflecting potential cost pressures or pricing challenges.

Balance Sheet

The balance sheet highlights high leverage with a rising debt-to-equity ratio, indicating increased financial risk. Stockholders' equity has significantly declined, which could limit financial flexibility. The equity ratio is very low, highlighting potential solvency concerns.

Cash Flow

Despite challenges in profitability, Topps Tiles demonstrated a stable operating cash flow, which exceeds net income, providing some liquidity cushion. However, free cash flow has declined from the previous year, indicating potential constraints on capital allocation.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
255.18M	251.76M	262.71M	247.24M	228.00M	192.81M
	Gross Profit
135.24M	134.32M	139.25M	126.57M	122.17M	107.97M
	EBIT
9.53M	-11.42M	11.11M	21.14M	28.37M	8.70M
	EBITDA
31.34M	12.23M	35.46M	39.28M	45.08M	22.77M
	Net Income Common Stockholders
529.00K	-13.03M	3.21M	9.01M	10.65M	-7.97M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.32M	23.68M	23.37M	16.24M	27.79M	31.02M
	Total Assets
164.38M	167.40M	174.40M	180.82M	188.07M	205.08M
	Total Debt
89.41M	100.96M	94.50M	102.93M	111.34M	129.14M
	Net Debt
70.09M	77.28M	71.13M	86.69M	83.55M	98.12M
	Total Liabilities
144.64M	161.82M	148.01M	151.78M	163.11M	191.03M
	Stockholders Equity
16.35M	5.58M	23.21M	26.58M	24.96M	14.08M
Cash Flow		Free Cash Flow
23.93M	19.30M	32.98M	19.71M	22.09M	44.38M
	Operating Cash Flow
28.00M	23.77M	37.23M	22.92M	26.50M	51.09M
	Investing Cash Flow
-3.47M	-12.95M	-3.61M	-6.50M	-1.84M	12.11M
	Financing Cash Flow
-25.12M	-10.51M	-26.50M	-27.97M	-27.89M	-50.93M

Topps Tiles Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TPT, the sentiment is Positive. The current price of 38 is above the 20-day moving average (MA) of 33.93, above the 50-day MA of 32.88, and above the 200-day MA of 37.95, indicating a bullish trend. The MACD of 1.41 indicates Negative momentum. The RSI at 71.48 is Negative, neither overbought nor oversold. The STOCH value of 85.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:TPT.

Topps Tiles Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KGF	73 Outperform	£5.23B	29.35	2.86%	4.13%	-1.51%	-45.51%
WIX	70 Outperform	£515.53M	29.19	11.73%	4.94%	-0.97%	-36.95%
MRK	65 Neutral	£61.40M	―	-9.63%	1.64%	9.57%	-129.76%
Sector *	62 Neutral	$6.84B	11.22	2.83%	3.93%	2.65%	-21.93%
TPT	53 Neutral	£74.67M	―	-93.27%	6.27%	6.55%	-1914.81%
HEAD	50 Neutral	£74.66M	―	-12.15%	10.75%	-9.66%	-425.03%

Topps Tiles Corporate Events

Topps Tiles Reports Strong Interim Results and Strategic Growth Initiatives

Topps Tiles Plc announced its interim financial results for the first half of 2025, highlighting significant growth in its digital trade experience and new product categories. The company reported a 4.1% increase in adjusted sales to £127.8 million and a 3.2% rise in adjusted profit before tax to £3.2 million. The acquisition of CTD has expanded its business-to-business sales focus, although it is not yet fully integrated. The company is optimistic about its growth prospects, expecting improved profitability by the year’s end, supported by strategic initiatives like Mission 365 and a strong start to the second half with a 9.5% increase in group adjusted sales.

Topps Tiles to Present Interim Results in Live Investor Session

Topps Tiles plc announced that its CEO, Rob Parker, and CFO, Stephen Hopson, will present the Group’s Interim Results in a live session via Investor Meet Company on 22 May 2025. This presentation is accessible to all existing and potential shareholders, allowing them to engage directly by submitting questions before or during the event, which could enhance transparency and stakeholder engagement.

Topps Tiles Updates Share Capital and Voting Rights

Topps Tiles announced its total issued share capital consists of 196,681,818 ordinary shares, with a total of 196,500,902 voting rights. The company’s employee benefit trust holds 180,916 shares, which are reserved for employee share plans and have waived voting and dividend rights. This update is crucial for shareholders to determine their notification obligations under the Financial Conduct Authority’s rules.

Topps Tiles Concludes CMA Investigation on CTD Tiles Acquisition

Topps Tiles has successfully concluded a Competition and Markets Authority (CMA) investigation regarding its acquisition of CTD Tiles. The CMA approved Topps Tiles’ proposed undertakings, allowing the company to proceed without a Phase II investigation. Topps Tiles will divest four CTD retail locations due to competition concerns but will retain the remaining stores and businesses. This resolution lifts previous restrictions on management oversight and integration, enabling Topps Tiles to review and strategize the CTD business ahead of its Interim Results announcement.

Topps Tiles Reports Strong Sales Growth and Strategic Progress in First Half of 2025

Topps Tiles Plc reported a 4.0% increase in group sales for the first half of 2025, with a notable acceleration in like-for-like sales growth in the second quarter. The company experienced strong trade sales and significant progress in digital initiatives, contributing to a 12% rise in trade sales and a 15% increase in digital channel sales. Despite challenges in the external cost environment, Topps Tiles improved gross margins through strategic pricing and product mix adjustments. The company is also advancing its ‘Mission 365’ growth strategy, including new product categories and enhanced digital platforms, while preparing for a leadership transition with the search for a new CEO.

Topps Tiles’ Acquisition of CTD Tiles Cleared by CMA

Topps Tiles announced that the Competition and Markets Authority (CMA) has approved in principle the company’s proposed remedies regarding the acquisition of the brand and certain assets of CTD Tiles, avoiding a Phase II investigation. This development is expected to positively impact Topps Tiles’ operations by facilitating the acquisition process and potentially strengthening its market position.