Topps Tiles says confidence is returning

12th Jan 2010 07:29

Tile and flooring specialist Topps Tiles said its trading performance over the first 14 weeks provides reassurance that consumer confidence is returning. However, the group added it was cautious about the outlook for the economy and believes that 2010 may continue to present a challenging economic environment for consumers. In November Topps Tiles issued a placing of up to 17.1m new of shares, raising gross proceeds of around £15.4m. "The placing was undertaken to help provide Topps Tiles with both the additional financial flexibility in the event of a further downturn in consumer confidence and spending and also additional resources to support the company's growth strategy as opportunities arise in the market," the group explained. In the first seven weeks of the new financial period UK revenues increased by 2.2% on a like-for-like basis. In the UK sales for the first 14 weeks of the financial year increased 3.9%, while like-for-like revenues increased by 5.5%. "We have a resilient business model which delivers outstanding value to our customers, and we believe that we will continue to see the benefits of this in the current financial period," the group said.Topps added there have been no further significant changes in the financial position of the group since the publication of the full year report for the 52 weeks ended 26 September 2009. The group, which closed down its loss making Dutch business in December, said the stores have now ceased trading and an administrator has been appointed.