Topps Tiles PLC (GB:TPT)
LSE:TPT
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Topps Tiles
(LSE:TPT)
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Rating:64Neutral
Price Target:
37.00 p
▲(2.78% Upside)
Action:Reiterated
Date:05/26/26
The score is driven primarily by improving financial performance and strong cash generation, supported by a reasonably constructive earnings outlook and cost-savings program. Offsetting these positives are high balance-sheet leverage, a weak technical trend (negative MACD and below key moving averages), and a demanding P/E despite an attractive dividend yield.
Positive Factors
Free Cash Flow Strength
Topps Tiles' substantial free cash flow growth and strong cash conversion materially improve its ability to fund operations, service debt, and invest in digital/trade initiatives without needing frequent external equity. This enhances financial resilience and supports sustainable capital allocation and dividends over the medium term.
Negative Factors
High Financial Leverage
The company's very high leverage and low equity base constrain financial flexibility and increase refinancing and covenant risk. Elevated debt magnifies the impact of interest rate moves and limits room for discretionary investment, making strategy execution more sensitive to cash‑flow volatility over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Topps Tiles' substantial free cash flow growth and strong cash conversion materially improve its ability to fund operations, service debt, and invest in digital/trade initiatives without needing frequent external equity. This enhances financial resilience and supports sustainable capital allocation and dividends over the medium term.
Read all positive factors
Topps Tiles (TPT) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£71.20M
Dividend Yield6.86%
Average Volume (3M)625.29K
Price to Earnings (P/E)13.2
Beta (1Y)0.42
Revenue Growth8.67%
EPS GrowthN/A
CountryUK
Employees1,854
SectorConsumer Cyclical
Sector Strength84
IndustryHome Improvement
Share Statistics
EPS (TTM)0.02
Shares Outstanding196,681,820
10 Day Avg. Volume789,180
30 Day Avg. Volume625,290
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)8.93
Price to Sales (P/S)0.23
P/FCF Ratio3.79
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£33.00Price Target Upside-8.33% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.04
Revenue Forecast (FY)£295.53M
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, a...
How the Company Makes Money
TPT makes money primarily by selling tiles and tile-related products to customers through its retail stores and e-commerce operations. Its main revenue stream is product sales, including (1) tiles (e.g., ceramic/porcelain/natural stone or other ti...
Topps Tiles Earnings Call Summary
Earnings Call Date:May 19, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 01, 2026
Earnings Call Sentiment Positive
The call presented a cautiously constructive picture: the group delivered notable margin expansion, operating profit improvement (pro forma +17%), strong digital and trade momentum (Pro Tiler +20%, online now 21% of mix), rapid profitable integration of Fired Earth, and material cost-savings actions (forecast £6m annual benefit). Offsets included flat adjusted PBT (£2.2m) due to higher interest, a small swing to net debt, CTD revenue pressure from a reduced store footprint, and ongoing inflationary labour cost headwinds. Management has clear self-help measures and a path to modest full-year profit growth, but near-term performance remains exposed to macro uncertainty.Positive Updates
Pro Forma Revenue Resilience vs Market
Pro forma revenue broadly flat year-on-year at £142.6m (‑0.2% pro forma) while the RMI market declined ~2.5%, demonstrating outperformance versus a weakening market.
Negative Updates
PBT Flat and Interest Pressure
Adjusted PBT was flat year-on-year at £2.2m (pro forma) as gross margin and operating profit gains were offset by higher interest costs; EPS was modest at 0.83p.
Read all updates
Q2-2026 Updates
Positive
Negative
Pro Forma Revenue Resilience vs Market
Pro forma revenue broadly flat year-on-year at £142.6m (‑0.2% pro forma) while the RMI market declined ~2.5%, demonstrating outperformance versus a weakening market.
Read all positive updates
Company Guidance
Management guided to modest year‑on‑year PBT growth for FY26, with trading weighted to H2 and gross margins expected to be broadly in line with H1 (adjusted gross margin 53% in H1; +160bps pro‑forma YoY). They expect the self‑help programme to deliver c.£3m of benefit in H2 and c.£6m of sustainable annual savings, underpinning profit delivery; H1 pro‑forma revenue was £142.6m (flat, -0.2% YoY), pro‑forma operating profit +17%, adjusted PBT £2.2m (flat pro‑forma), and costs rose 1.8% (~£1.2m). Balance sheet guidance: aiming for a small net cash position at year‑end (H1 net debt c.£3.1m) supported by a £30m RCF. Company reiterated CTD is on track to be profitable in H2 (H1 loss £0.4m, improved £0.6m YoY), Fired Earth profitable after four months, Pro Tiler +~20% YoY, and online mix at 21% (+3.3pp).Topps Tiles Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
65
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 295.45M | 295.75M | 251.76M | 262.71M | 247.24M | 228.00M |
| Gross Profit | 154.83M | 153.41M | 134.32M | 139.25M | 126.57M | 122.17M |
| EBITDA | 37.45M | 33.27M | 12.23M | 35.46M | 39.28M | 45.08M |
| Net Income | 5.13M | 5.99M | -13.03M | 3.21M | 9.01M | 10.65M |
Balance Sheet | ||||||
| Total Assets | 184.80M | 187.89M | 167.40M | 174.40M | 180.82M | 188.07M |
| Cash, Cash Equivalents and Short-Term Investments | 15.93M | 18.43M | 23.68M | 23.37M | 16.24M | 27.79M |
| Total Debt | 99.08M | 110.79M | 100.96M | 94.50M | 102.93M | 111.34M |
| Total Liabilities | 181.06M | 180.17M | 161.82M | 148.01M | 151.78M | 163.11M |
| Stockholders Equity | 3.74M | 7.73M | 5.58M | 23.21M | 26.58M | 24.96M |
Cash Flow | ||||||
| Free Cash Flow | 23.18M | 18.22M | 19.30M | 32.98M | 19.71M | 22.09M |
| Operating Cash Flow | 26.45M | 23.72M | 23.77M | 37.23M | 22.92M | 26.50M |
| Investing Cash Flow | -6.03M | -4.72M | -12.95M | -3.61M | -6.50M | -1.84M |
| Financing Cash Flow | -17.26M | -24.24M | -10.51M | -26.50M | -27.97M | -27.89M |
Topps Tiles Technical Analysis
Negative
36.00
Price Trends
34.51
Negative
37.57
Negative
36.92
Negative
Market Momentum
0.16
Negative
48.15
Neutral
46.67
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 36 is above the 20-day moving average (MA) of 34.28, above the 50-day MA of 34.51, and below the 200-day MA of 36.92, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 48.15 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | £4.20B | 15.71 | 23.58% | 2.57% | 4.13% | 8.25% | |
70 Outperform | £269.30M | 16.93 | 24.66% | 2.49% | 7.34% | 169.28% | |
66 Neutral | £4.73B | 19.74 | 3.91% | 3.99% | 1.26% | 40.14% | |
64 Neutral | £71.20M | 13.16 | 89.58% | 6.86% | 8.67% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | £381.72M | 10.42 | 29.52% | 3.83% | 6.33% | 125.67% | |
43 Neutral | £23.28M | -0.28 | -61.90% | ― | -15.92% | -227.33% |
* Consumer Cyclical Sector Average
GB:TPT
Topps Tiles
34.40
1.48
4.49%
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Topps Tiles Corporate Events
Business Operations and StrategyFinancial Disclosures
Topps Tiles lifts profits proforma as it outperforms weak RMI market
Positive
May 19, 2026
Topps Tiles, the UK’s leading tile specialist, reported interim results showing it continued to outperform a weak home improvement market while pushing deeper into its predominantly trade-focused customer base. Around three quarters of group...
Business Operations and StrategyFinancial Disclosures
Topps Tiles Schedules Online Presentation on Half-Year Results
Neutral
May 13, 2026
Topps Tiles has announced that senior executives Alex Jensen and Robert Swales will deliver a live online presentation on the company’s half‑year results via the Investor Meet Company platform on 21 May 2026 at 09:00 BST. The digital e...
Business Operations and StrategyRegulatory Filings and Compliance
Topps Tiles Updates Share Capital and Voting Rights After EBT Allocation
Neutral
Apr 30, 2026
Topps Tiles has updated the market on its capital structure, confirming a total issued share capital of 196,681,818 ordinary shares, with none held in treasury. An employee benefit trust now holds 880,363 shares to satisfy future share plan obliga...
Business Operations and StrategyExecutive/Board Changes
Topps Tiles Confirms Start Date for New Chief Financial Officer
Neutral
Apr 17, 2026
Topps Tiles has confirmed that previously announced CFO‑designate Caroline Browne will formally take up the role on 26 May 2026. The appointment of a new finance chief underscores a key leadership transition for the UK tile specialist, with ...
Business Operations and StrategyFinancial Disclosures
Topps Tiles Maintains Revenue and Outperforms Market Amid Store Closures and Digital Push
Positive
Apr 1, 2026
Topps Tiles, the UK’s leading tile specialist, reported first-half group revenue of £142.7m, broadly flat year on year, but continued to outperform a Home Improvements and DIY market that shrank about 2.5%. Revenue excluding CTD grew 2....
Business Operations and StrategyDelistings and Listing Changes
Topps Tiles Seeks Admission of Shares for Employee Option Scheme
Positive
Mar 25, 2026
Topps Tiles has applied to the London Stock Exchange for the admission to trading of 1,900,000 new ordinary shares of 3.33 pence each on the main market. These shares will be issued over time to satisfy options exercised under the company’s ...
Executive/Board Changes
Topps Tiles Audit Chair Martin Payne Joins Ibstock Board
Positive
Mar 5, 2026
Topps Tiles has announced that independent non‑executive director Martin Payne, who also chairs its audit committee, will take on an additional role at building materials group Ibstock. Payne will become an independent non‑executive di...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.