Topps Tiles (TPT) AI Stock Analysis

• Market Cap: £67.63M
• Dividend Yield: 5.81%
• Average Volume (3M): 142.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: 6.55%
• EPS Growth: -1914.81%
• Country: UK
• Employees: 1,854
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Home Improvement
• EPS (TTM): 0.01
• Shares Outstanding: 196,612,170
• 10 Day Avg. Volume: 106,234
• 30 Day Avg. Volume: 142,230
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £35.00
• Price Target Upside: 1.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: 35.00p ▲(1.74% Upside)

Topps Tiles is facing significant financial challenges with declining revenues and profitability, high leverage, and low equity. Technical indicators suggest a bearish trend, and the negative P/E ratio highlights valuation concerns. The high dividend yield is a positive aspect but may not be sufficient to offset the overall risks.

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 its extensive range of tiles and flooring products. The company operates a multi-channel retail model, which includes physical stores, an online shopping platform, and trade sales to contractors and builders. Key revenue streams include direct sales from retail locations, online orders, and bulk sales to business customers. Additionally, TPT benefits from strategic partnerships with suppliers and manufacturers, enabling them to offer exclusive products and competitive pricing. The company also engages in promotional activities and customer loyalty programs to drive repeat business and enhance customer retention, contributing significantly to its overall earnings.

Topps Tiles Financial Statement Overview

Summary

Topps Tiles faces a challenging financial position with declining revenues, negative EBIT, and decreased gross profit margins. High leverage and low equity present significant risks, though stable operating cash flow provides some liquidity cushion.

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
EBITDA	12.23M	35.46M	39.28M	45.08M	22.77M
Net Income	-13.03M	3.21M	9.01M	10.65M	-7.97M
Balance Sheet
Total Assets	167.40M	174.40M	180.82M	188.07M	205.08M
Cash, Cash Equivalents and Short-Term Investments	23.68M	23.37M	16.24M	27.79M	31.02M
Total Debt	100.96M	94.50M	102.93M	111.34M	129.14M
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: Negative
• Last Price: 34.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 34.4 is below the 20-day moving average (MA) of 36.08, below the 50-day MA of 36.99, and below the 200-day MA of 35.22, indicating a bearish trend. The MACD of -0.35 indicates Positive momentum. The RSI at 40.54 is Neutral, neither overbought nor oversold. The STOCH value of 20.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:TPT.

Topps Tiles Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LIKE	70 Neutral	67.41M	50.00	1.95%	1.39%	9.26%	31.71%
KGF	64 Neutral	4.36B	24.75	2.92%	4.93%	-1.51%	-45.51%
MRK	58 Neutral	63.49M	-43.84	-12.82%	1.59%	2.55%	-445.00%
WIX	54 Neutral	492.34M	21.28	12.66%	4.24%	3.98%	-22.94%
TPT	46 Neutral	£67.63M	―	-93.27%	5.81%	6.55%	-1914.81%
HEAD	46 Neutral	47.03M	-1.03	-13.09%	―	-11.65%	-273.57%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Topps Tiles Corporate Events

Topps Tiles Engages Shareholders Post-AGM and Announces New CEO

Topps Tiles Plc has provided an update following its 2025 Annual General Meeting, where several resolutions, including the remuneration report and the re-election of certain board members, passed with less than 80% approval. The company has engaged with shareholders to address their concerns and will consider their feedback in future policy reviews. Additionally, Topps Tiles announced the appointment of Alex Jensen as CEO designate, effective from September 15, as part of its executive succession planning.

Topps Tiles CFO Exercises Share Options, Alters Voting Rights

Topps Tiles PLC announced that its Chief Financial Officer, Stephen Hopson, exercised nil-cost share options for 111,272 ordinary shares under the company’s Long Term Incentive Plan. He sold 52,294 shares to cover tax liabilities and costs, retaining the rest. This transaction affects the company’s total voting rights, now standing at 196,612,174, as the Employee Benefit Trust adjusted its holdings accordingly. This adjustment in voting rights is significant for shareholders monitoring their stakes under regulatory requirements.

Topps Tiles Reports Strong Q3 Growth and Strategic Progress

Topps Tiles Plc reported strong trading momentum in the third quarter of 2025, with a 10.1% increase in group adjusted sales, surpassing the growth seen in the first half of the year. The company experienced improved sales across all divisions, particularly in trade sales, and saw an increase in active trade customers and online sales. Despite a challenging cost environment, the company expects gross margins to improve and operating costs to grow at a slower rate than gross profits. The company is also making strategic progress with its Mission 365 plan, focusing on digital enhancements and expanding its business-to-business sales, positioning itself for continued growth in sales and profits.

Topps Tiles Announces New CEO and CFO Transition

Topps Tiles Plc has announced significant leadership changes, appointing Alex Jensen as the new CEO following Rob Parker’s retirement. Jensen, with a robust background in retail and digital transformation, is expected to drive the company’s growth and value creation initiatives. Additionally, CFO Stephen Hopson will be leaving, with Mike Killick stepping in as interim CFO, ensuring a smooth transition. These changes are poised to impact the company’s strategic direction and stakeholder value positively.