Topps Tiles sales fall slowing

Wed 23 Sep, 2009 06:35

LONDON (Reuters) - Tile and wood flooring retailer Topps Tiles (TPT.L) said sales declines had slowed in the second half and that its markets were stabilising, adding to hopes the recession may be nearing its end.

The firm said it expected sales at stores open more than a year to have fallen 13.5 percent in the year to the end of September.

That compares with a fall of 18.5 percent in the six months to March 28.

"Whilst we remain cautious in our outlook for the economy the business is proving its resilience by continuing to deliver profits in line with expectations and reducing net debt," Chief Executive Matt Williams said in a statement.

"The board is reassured by our current trading performance and we are seeing signs of stability in our market."

Topps said it expects operating profit for the year to come in at between 10.5 million pounds and 14 million pounds.

Shares in Topps Tiles have more than trebled in value so far this year, outperforming the FTSE All Share General Retailers Index by 240 percent.

The stock closed at 86.50 pence on Tuesday, valuing the business at 145 million pounds.

(Reporting by Rhys Jones; editing by Victoria Bryan)