Reasons to Invest
1. Attractive Market Dynamics
Following the expansion of our target market last year, to include a wider range of hard surface coverings beyond tiles, including products like luxury vinyl tiles, wood and laminate, shower panels and splashbacks, we now have the capability to supply all hard surface coverings and related products to homeowners, trade customers, contractors and house builders, in markets with a combined value of approximately £2.1 billion. The UK housing market is older and more underinvested than in other European markets, suggesting a strong pipeline of future demand, and the Group’s market share of this expanded market is small, suggesting significant room for future expansion.
2. Ambitious Growth Strategy
We launched our new goal, Mission 365, which is to profitably grow sales to £365 million in the medium term, while materially increasing our profit. In our omni-channel Topps Tiles and CTD brands, we will increase sales densities per store by continuing to offer innovative and inspirational products, as well as expanding into new product areas, continually developing our digital presence, and delivering world-class service. In our newer businesses, Online Pure Play and Commercial, we will continue to take share as we rapidly grow our scale. All of our businesses have significant growth potential and all of our businesses can deliver net margins of around 8% over time. In 2025, Group statutory revenues of £295 million are up from £252 million in 2024 and adjusted profit before tax has increased [46%] year on year, following the acquisition of CTD and strong strategic progress in many areas, showing the early successes of our growth strategy.
3. Strong Balance Sheet
The Group reported positive net cash as at 30 September 2025, and sufficient headroom against its banking facilities, (which are committed until October 2027). Given that the Group operates a leasehold model, this provides substantial resilience against any further economic shocks as well as allowing the business to invest for growth, such as the recent acquisitions of Pro Tiler Tools, CTD and Fired Earth.
4. Good Cash Generation
We generate high quality profits which convert to cash well due to high gross margins, low working capital requirements and relatively modest levels of capital expenditure in normal circumstances. Our capital allocation policy sees dividend payments set at a core level of 67% of adjusted EPS, with the flexibility to increase to higher levels - a strong sign of confidence.
5. Environmental Leadership
We have a goal to be carbon neutral in Scopes 1 and 2 by 2030, and intend to lead the tile industry in environmental credentials.
We strongly believe that substantially reducing our impact on the environment is good for the planet and all of our stakeholders.
Our strengths
1. Market Leading Omnichannel Customer Proposition
Topps Tiles combines physical stores with a strong digital presence. Our stores are valued by trade customers for convenience and technical advice, and by homeowners for inspiration and service. We aim to build our digital presence further, especially for our trade customers, and this year have relaunched the trade website and launched a new Customer Engagement Platform, allowing us to interact more closely with trade customers. 2026 will see the launch of a trade app, among other developments.
Almost every homeowner customer who visits a Topps Tiles store uses our website in some way, and the majority of website sales involve a store at some stage in the process, giving us a significant advantage over purely online or bricks-and-mortar competitors.
2. Nationwide Coverage
We are the only tile distributor in the UK to offer full national coverage, trading from 297 locations in the Topps Tiles brand and 22 CTD stores, to offer unrivalled convenience for trade customers and allowing the whole of the UK population to access our products and customer service in person.
3. Specialist Expertise
We have a real specialism in tiles and associated products, and the scale to leverage it. We are able to buy from all over the world, have unrivalled relationships with suppliers, and work with our suppliers to develop differentiated products, 75% of which are exclusive to us. With the extension of our brand portfolio to include Topps Tiles, CTD, Pro Tiler Tools, Fired Earth and more, we now have brands relevant to many different types of customer and clients.
4. World-class Customer Service
When homeowners shop with us, they are often buying a product which is unfamiliar to them, requiring a high level of support and design inspiration. Trade customers require specialist expertise, technical knowledge and stock availability. Across both groups, we are proud of our high service levels – our overall customer satisfaction scores in Topps Tiles of 91.1% is world class.
5. Diverse Market Exposure
The Group has developed and diversified in recent years and, following the acquisition of CTD and Fired Earth, now operates six brands which cater for all economically attractive customer segments, in all channels. This breadth allows the Group to sell into the residential market across all price points, to the specialist trade market, to the contractor market and to architects and designers in the commercial market, all while retaining its specialism in tiles and related products.
