Interim report shows profits plunge for tile retailer.
Topps Tiles has reported disappointing interim figures for the first half of the 2008/9 financial year with pre-tax profits falling by £15.2m and overall revenue down 13.4% compared with the same period last year.

The results for the 26 weeks to March 28 reflect the current economic climate and the reduction in consumer confidence, with overall like-for-like revenues declining by 18.5% and operating profit more than halved against the same period last year to £10.3m. In addition, there was bad news for shareholders, with the predictable decision not to pay an interim dividend.

Commenting on the results, Topps' chief executive Matthew Williams attempted to put a brave face on matters, saying: "The business continues to demonstrate its resilience during a challenging trading period. We are delivering on our key financial and operational objectives and, as the market-leading brand, we are confident that we will benefit as competitors withdraw and conditions improve."

One area of the business that has seen improvement has been the fact that operating costs have fallen to £44.4m compared to £45.9m in the previous year. This has come about as a result of a company-wide focus on cost control. Areas that have seen savings have included a reduction in marketing expenditure, improved use of logistics infrastructure and lower staffing levels in both stores and central support structures, with 8.5% and 10% reductions in headcount respectively.

Looking forward, Topps said its objectives are "centred on optimising returns from the existing estate, managing our cost base very carefully and improving our financial flexibility".