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Topps Tiles
(LSE:TPT)
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Rating:70Outperform
Price Target:
39.00 p
▲(9.86% Upside)
Action:Upgraded
Date:08/26/26
Overall score is driven primarily by strengthening fundamentals (better margins and strong free cash flow) and a supportive valuation (moderate P/E and high dividend yield). These positives are tempered by balance-sheet leverage risk and only neutral-to-mixed technical momentum, while the earnings call supports a modest improvement outlook but flags interest-cost, inflation, and macro headwinds.
Positive Factors
Revenue resilience
Topps Tiles is maintaining demand despite a weaker renovation market. Revenue growth and relative market outperformance suggest resilient customer relationships and product relevance, supporting a durable base for recovery as industry conditions improve.
Negative Factors
High financial leverage
The highly debt-funded balance sheet leaves limited equity protection if trading weakens. Higher leverage can restrict strategic flexibility and increase sensitivity to financing costs, making deleveraging important for long-term resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue resilience
Topps Tiles is maintaining demand despite a weaker renovation market. Revenue growth and relative market outperformance suggest resilient customer relationships and product relevance, supporting a durable base for recovery as industry conditions improve.
Read all positive factors
Topps Tiles (TPT) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£68.64M
Dividend Yield9.04%
Average Volume (3M)256.70K
Price to Earnings (P/E)13.3
Beta (1Y)0.40
Revenue Growth8.67%
EPS GrowthN/A
CountryUK
Employees1,872
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.03
Shares Outstanding196,681,820
10 Day Avg. Volume188,860
30 Day Avg. Volume256,698
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.03
Revenue Forecast (FY)£293.25M
Topps Tiles Business Overview & Revenue Model
Company Description
Topps Tiles Plc primarily operates as a major retailer and wholesale distributor of a diverse range of tiling products and complementary materials. Serving both individual homeowners and commercial clients throughout the United Kingdom, their exte...
How the Company Makes Money
Topps Tiles makes money primarily by selling tiles and related products to customers in the UK through multiple routes-to-market. (1) Retail sales: Revenue is generated from in-store and online sales of tiles (its core product category) and ancill...
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 | 118.08M | 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
35.50
Price Trends
34.91
Negative
34.93
Negative
37.29
Negative
Market Momentum
>-0.01
Positive
48.32
Neutral
61.54
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 35.5 is above the 20-day moving average (MA) of 35.45, above the 50-day MA of 34.91, and below the 200-day MA of 37.29, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.32 is Neutral, neither overbought nor oversold. The STOCH value of 61.54 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | £68.64M | 13.32 | 89.58% | 9.04% | 8.67% | ― | |
68 Neutral | £4.21B | 15.82 | 22.80% | 2.85% | 4.15% | 5.60% | |
67 Neutral | £5.03B | 22.82 | 3.91% | 4.10% | 1.26% | 40.14% | |
67 Neutral | £236.13M | 14.79 | 24.66% | 3.02% | 7.34% | 169.28% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | £421.33M | 11.71 | 29.52% | 5.67% | 6.33% | 125.67% | |
41 Neutral | £8.43M | -0.10 | -61.90% | 5.49% | -15.92% | -227.33% |
* Consumer Cyclical Sector Average
GB:TPT
Topps Tiles
34.30
0.63
1.89%
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Topps Tiles Corporate Events
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Topps Tiles Moves to Address Shareholder Dissent Over AGM Resolution
Negative
Jul 15, 2026
Topps Tiles has issued a statement following its 15 January 2026 Annual General Meeting, after more than 20% of shareholders voted against resolution 13, which nonetheless passed with 53.16% support. In line with the UK Corporate Governance Code, ...
Business Operations and StrategyFinancial Disclosures
Topps Tiles holds revenue line as cost cuts and online push offset market slump
Negative
Jul 1, 2026
Topps Tiles reported a 1.8% decline in third-quarter group revenue to £75.6 million, reflecting weak consumer demand, store closures at CTD and the closure of underperforming Topps outlets, though core revenue excluding CTD inched up 0.6%. Li...
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.