Topps Tiles PLC (LON:TPT) has announced a new market share goal after slumping to a full-year loss and aims to account for £1 in every £5 spent on tiles in the UK by 2025.
The retailer, which estimates to have a market share of 17% currently, said it will be achieved by serving a broader customer base, focusing on enhancing customer service in retail and growing the commercial business.
READ: Topps Tiles appoints new chief financial officer
In the first eight weeks of the current financial year, retail like-for-like revenues jumped 19.6% compared to 2019 as the business benefitted from the increase in home improvement activity driven by the pandemic.
Conversely, the commercial market remains subdued but activity levels starting to improve.
In the year to September 26, group revenue slipped 12% to £192mln while last year’s £12mln before tax turned into a £9mln loss due to impairments.
The decline was due to disruption amid the COVID-19 pandemic, including a period of temporary store closures in the third quarter, although the last quarter saw a strong recovery with retail sales up 16.5%.
The company did not propose a dividend to protect its net cash position, which at year-end stood at £26mln.
House broker Liberum bumped up the target price to 95p from 85p following the recent boost in trading and the market share goal which it says demonstrates confidence.
“There is good valuation support from the group’s strong trading momentum, potential for further upgrades as we move through the year, balance sheet strength and growing net cash position,” analysts noted.
Shares rose 1% to 56.59p on Tuesday morning.
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