Great Choice. Great Prices. Great Service
Total Page:16
File Type:pdf, Size:1020Kb
Topps Tiles Plc Tiles Topps great Annual Report and Financial Statements 2010 Statements Financial and Report Annual choice. great PriceS. great SerVice. Topps Tiles Plc Thorpe Way, Grove Park, Enderby, Leicestershire LE19 1SU T 0116 282 8000 Topps Tiles Plc F 0116 282 8115 Annual Report and Financial Statements 2010 www.toppstiles.co.uk Plc Annual Report and Financial Statements 2010 Introduction store locations “This has been a robust performance from the 15 business during a tough trading period, which stores operated by demonstrates the effectiveness of our strategy the Group in Scotland and the strength and resilience of our business model. Through the prudent management of costs and careful control of our business, we scotland have significantly reduced our net debt position 63 stores operated by the during the period and continued to build on our Group in North region market leading position”. Matthew Williams Chief Executive Officer 50 stores operated North by the Group London in Midlands region Inside this year’s report 4 8 15 Midlands 12 stores operated Wales by the Group in Wales 56 GreaT choIce. GreaT PrIces. GreaT servIce. south stores operated by the Group 1 1 3 in London stores operated review of Financial additional by the Group the business statements information in South region 1 The year in brief 30 Independent auditors’ report 67 Five year record 2 Our strategy – consolidated financial 68 Notice of Annual statements General Meeting 3 Chairman’s statement 31 Consolidated statement of 71 Explanatory notes to 5 Chief Executive’s statement financial performance the Notice of Annual 9 Business review 31 Consolidated statement of General Meeting 17 Corporate Social Responsibility comprehensive income 73 Appendix – Principal features 32 Consolidated statement of of the share incentive plan Governance financial position 75 The team 80 Store locations 20 Directors 33 Consolidated statement of changes in equity 21 Directors and advisors 34 Consolidated cash flow 22 Directors’ report statement Topps Tiles – store numbers Tile clearing house – store numbers 25 Corporate governance 35 Notes to the consolidated Stores at the beginning Stores at the beginning statement financial statements of the period 265 of the period 44 27 Remuneration report 63 Independent auditors’ report New stores opened 17 New stores opened – – Company financial statements h Sub-total 282 Sub-total 44 April 2010 sees the proud launch 64 Company balance sheet of our successful new website. 65 Notes to the Company Designed and produced Closures (including brand swaps) –7 Closures (including brand swaps) –7 financial statements by radley Yeldar www.ry.com Total 275 Total 37 Plc Annual Report and Financial Statements 2010 The year in brief 1 Financial Performance £182.4 m +1.7% 58.7% Group revenue Group like-for-like revenue Group gross margin (2009: £178.8m*) (2009: –13.1%*) (2009: 59.2%*) £19.9m £21.1m £16.3m Operating profit Adjusted operating profit** Adjusted profit before tax*** (2009: £21.3m*) (2009: £22.8m*) (2009: £17.5m*) Review of the business £12.4 m 5.37p 6.18 p Profit before tax Basic earnings per share Adjusted basic earnings per share for continuing operations**** (2009: £9.9m*) (2009: 1.00p see note 13) (2009: 7.34p see note 13) 1p £49.1m Governance Dividend per share Net debt (2009: Nil) (2009: £71.2m) Please note this report has been prepared for the 53 weeks ended 2 October 2010 and the comparative period has been prepared for the 52 weeks ended 26 September 2009. With the exception of the Group like-for-like revenue measure which is comparable, the reported figures are presented on this basis and are not entirely comparable. The impact of the additional week is to increase revenue by £3.6 million and operating profit by £0.4 million. Financial Statements Financial Current trading and outlook The Group is now trading from 312 stores (2009: 309 stores in the UK) In the first seven weeks of the new financial period, Group revenues increased by 2.9% and increased by 3.2% on a like-for-like basis Other information Other * Comparative numbers are presented after restating the statement of financial performance to reflect the Dutch business as a discontinued operation, further information is provided in note 11 ** 2010 adjusted operating profit is adjusted for exceptional items being the impairment of plant, property and equipment of £0.8 million (2009: £1.0 million*) and other restructuring and one-off costs of £0.4 million (2009: £0.5 million*) *** 2010 adjusted profit before tax is adjusted for the effect of exceptional items above plus: – £2.8 million (non cash) charge relating to the interest rate derivatives the Group has in place (per IAS 39) (2009: £5.8 million) – Property disposal gain of £0.1 million (2009: loss of £0.3 million) **** Adjusted for the post tax effect of non-recurring items highlighted above Plc Annual Report and Financial Statements 2010 Our strategy 2 The Topps’ strategy is focused on delivering outstanding value to our customers to ensure they always “return and recommend”. This has enabled us to retain our competitive advantage built upon the strong foundations of customer service, store locations, store layout, and product range. CUSTOMER STORE SERVICE LOCATIONS Customer service remains our number one priority We make our store locations as easy for customers and it is our policy to be honest, helpful and to get to as possible. We operate from highly knowledgeable but never pushy. We operate visible locations on or close to busy roads and an online e-learning centre which all staff are always with parking facilities. We have over 300 enrolled to and new courses are issued regularly to locations across the UK which ensures that the ensure our staff have the best product knowledge vast majority of customers will have a store near in the industry. To ensure our customer service to them. always meets these high standards all of our stores are mystery shopped every month and customer response cards indicate that 97.6% of our customers rate our service “good to excellent”. STORE PRODUCT L AYOUT RANGE Our stores are clearly identified with bright, eye- As a specialist we are able to offer a huge range catching exterior signage bearing the Topps Tiles of products with many of them in stock and or Tile Clearing House branding. Our average available to take away. Many of our key lines store size is around 6,250 square feet and is are imported directly from factories all over the merchandised in a mini warehouse style, including world which ensures that we can offer the very separate areas of the store for wood flooring and latest tastes and trends to our customers, often natural stone. Stores are designed to be customer on an exclusive basis. friendly with point of sale which aims to give informative product details and clear pricing. Plc Annual Report and Financial Statements 2010 Chairman’s statement 3 The management team has maintained a keen focus on delivering profits whilst prudently managing costs, continuing to invest in infrastructure and pursuing targeted growth of the store estate. The business is performing in line with management’s expectations and current trading figures also offer cause for confidence. £16.3m 1p Adjusted profit before tax*** Dividend per share (2009: £17.5m*) (2009: Nil) In our Interim Management Report we During the period we have incurred People Review of the business noted that the retail environment had £1.2 million (2009: £1.5 million*) of The Company’s staff remain fundamental continued to be challenging, particularly exceptional charges relating to the closure to the success of the business through their for those retailers dependent on and relocation of stores in the UK. delivery of outstanding customer service. discretionary spend. I am encouraged On an adjusted basis, we have This service ethic sets Topps Tiles apart to be able to report that we have seen generated an operating profit** of from its competitors and underpins the a return to like-for-like growth across the £21.1 million (2009: £22.8 million*) robust business model that has proved financial period as a whole. and a profit before tax*** of so valuable in enabling the Group to £16.3 million (2009: £17.5 million*). Our performance for the period has withstand the economic downturn. Adjusted basic earnings per share for demonstrated the resilience of our I would like to extend the Board’s thanks continuing operations**** were 6.18p business model and the prudence of and gratitude once again to everyone (2009: 7.34p see note 13). management’s decisions regarding the in the Group for their continuing efforts Governance pursuit of growth, expansion of the store Dividend and hard work. estate and marketing of the business. We have continued to manage the The Board has given careful consideration Outlook to the resumption of dividend payments. business prudently, focusing on cost The management team has maintained Trading has improved and we are control, and we remain firmly cash a keen focus on delivering profits whilst encouraged that we have seen a good generative with a secure balance sheet prudently managing costs, continuing level of stability, from which we feel we and increasing strength in our trading to invest in infrastructure and pursuing can plan and move forward. We have levels. We are confident that we are targeted growth of the store estate. also commenced early negotiations well positioned to benefit when market The business is performing in line with with our existing lenders to extend our conditions materially improve and management’s expectations and current consumer confidence returns current banking facilities and, based trading figures also offer cause for Statements Financial on those discussions, the Board is now more strongly.