Topps Tiles Slumps and Grows
It may not seem the wisest of moves to plan to expand during a slump in sales. However, that is precisely the tactic being employed by Topps Tiles. The Leicester based company, which specialises in tiles and wood flooring, including wood floor restoration, sent an update to the London Stock Exchange yesterday morning indicating that while it is anticipating a sales slump of no less than two and a half percent when it unveils its next set of financial results, that is not going to stop it from pressing ahead with its plan to open another seven stores in the United Kingdom by the end of this year.
“The group is currently trading with from a total of three hundred and thirteen stores and expects to end the financial year with three hundred and twenty,” the company said in a statement yesterday. “The group has now completed the refinancing of its loan facilities and has secured a new committed seventy-five million (UK pounds) revolving credit facility with its existing lenders through to May 2015. It is anticipated that a slightly higher cost of borrowing will be broadly offset by a smaller, more efficient loan facility.”
Total revenue for the twenty-six week period that will end on the 2nd April is expected to have increased by around one point eight percent from the equivalent period this time last year, which is a slight decrease of the two percent increase, recorded in the last six months of 2010.