Following consideration of the financial position and performance of the Group, the Topps Tiles PLC Board has decided to propose the resumption of dividend payments and to readopt the previous policy of paying approximately half of adjusted EPS as dividends. Moving forward, the interim dividend would be set at approximately one third of the prior full year dividend. The Group will evaluate its capital allocation policy in the coming year.
This year, the Topps Tiles PLC Board is recommending to shareholders a final dividend of 3.1 pence per share, which will cost £6.1 million. The shares will trade ex-dividend on 23 December 2021 and, subject to approval at the Annual General Meeting, the dividend will be paid on 31 January 2022.
Other financial highlights include:
•Retail like-for-like sales up 19.6% despite trade restrictions throughout Q2
•Gross margins of 57.3% (FY20 58.5%), reflecting increased investment into value and higher shipping costs
•Strong recovery in adjusted profit before tax to £15.3 million (FY20 £3.6 million)
•Underlying net cash generation of £12.5 million including £(10.7) million of one-offs from 53rd week and deferred VAT repayment
•Business well capitalised with strong balance sheet - £27.8 million net cash at year end
•Strong returns on invested capital - Group ROCE has increased from 13.1% in FY19 to 17.5% in FY21
