Topps Tiles’ (TPT’s) Q124 update indicates that trading was a little softer towards the end of the quarter than was reported for the first eight weeks, ie at the time of the FY23 results. However, the end of Q124 had a more challenging comparative than the start of the period since TPT enjoyed stronger sales as Q123 progressed. The ongoing revenue weakness is not surprising given the weak repairs, maintenance and installation market backdrop, but management believes the strength of its offer and customer service has translated into further market share gains in the period. Our forecasts for FY24 and FY25 are unchanged. The shares continue to look attractively valued versus historical multiples, relative growth rates and expected profitability.
