Topps Tiles (TPT) AI Stock Analysis

• Market Cap: £69.76M
• Dividend Yield: 0.04%
• Average Volume (3M): 330.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: 6.55%
• EPS Growth: -1914.81%
• Country: UK
• Employees: 1,854
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Home Improvement
• EPS (TTM): 0.01
• Shares Outstanding: 196,500,900
• 10 Day Avg. Volume: 265,319
• 30 Day Avg. Volume: 330,497
• PEG Ratio: -0.53
• Price to Book (P/B): 2.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.82
• 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: 13.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 59 Neutral
• Price Target: 39.00p ▲(5.12%Upside)

Despite financial challenges, strong corporate events and positive technical analysis contribute positively to the score. The company's strategic growth initiatives and improved gross margins are significant positives, though financial health remains a concern.

Topps Tiles Business Overview & Revenue Model

Company Description

Topps Tiles Plc engages in the retail and wholesale distribution of ceramic and porcelain tiles, natural stone, and related products for residential and commercial markets in the United Kingdom. The company offers bathroom, kitchen, floor, wall, and mosaic tiles, under floor heating products, wet room tools, and hand tools and accessories, as well as fixing and finishing products, including adhesives and primers, grouts, silicone, trims, doorbars, and matting and leveling products. It also engages in the property management and investment activities, retail and wholesale of wood flooring products, and provision of warehousing services. As of September 26, 2020, the company operated 342 retail stores. It also sells its products online. The company was founded in 1963 and is headquartered in Leicester, the United Kingdom.

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

Topps Tiles Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 37.1 is above the 20-day moving average (MA) of 36.63, above the 50-day MA of 33.59, and above the 200-day MA of 36.69, indicating a bullish trend. The MACD of 0.82 indicates Positive momentum. The RSI at 56.38 is Neutral, neither overbought nor oversold. The STOCH value of 27.73 is Neutral, 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
WIX	67 Neutral	£530.13M	30.12	11.73%	6.39%	-0.97%	-36.95%
KGF	66 Neutral	£4.81B	27.14	2.86%	6.21%	-1.51%	-45.51%
MRK	65 Neutral	£61.92M	―	-9.63%	1.02%	9.57%	-129.76%
Sector *	62 Neutral	$6.90B	11.05	2.80%	4.27%	2.67%	-24.92%
TPT	59 Neutral	£69.76M	―	-93.27%	0.04%	6.55%	-1914.81%
HEAD	50 Neutral	£79.15M	―	-12.15%	6.45%	-9.66%	-425.03%
LIKE		£54.94M	70.31	1.96%	2.22%	―	―

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.