Slide 1: Full Year Results 2025 Analyst and Investor Presentation
Full Year Results 2025 Analyst and Investor Presentation 1
Slide 2: FY25 Overview, Financials & Strategic Progress
▪ FY25 Overview, Financials & Strategic Progress Rob Parker ▪ First Impressions & Key Areas of Focus Alex Jensen 2
Slide 3: Overview, Financials & Strategic Progress
Overview, Financials & Strategic Progress Rob Parker Chief Executive Officer 3
Slide 4: FY25 Summary
FY25 Summary Strategic & Operational Highlights Financial Highlights • Clear strategic goal of ‘Mission 365’, £365m of ▪ Group adjusted sales +6.8% YoY, total sales at 8-10% net margin sales now £295.8m • Five areas of strategic growth with strong ▪ Group adjusted gross margin +0.5% pts progress – 4
Slide 5: Statement of Profit or Loss - Adjusted Measures
Statement of Profit or Loss - Adjusted Measures* FY 25 FY 24 YoY Sales - £m 265.4 248.5 +6.8% Gross profit - £m 142.7 132.5 +7.7% Gross margin % 53.8% 53.3% +0.5% pts Operating costs - £m (127.2) (121.5) +4.7% Operating profit - £m 15.5 11.0 +40.9% Interest - £m (6.3) (4.7) +34.0% PBT - £m 9.2 6.3 +
Slide 6: Performance Bridges
Performance Bridges Revenue Gross Margin FY25 Sales>> £218.6m £8.5m £38.3m Topps Tiles Adj Operating Costs Summary ▪ Sales – all parts of the business in growth, +6.8% excl CTD, +17.5% including CTD ▪ Gross margin – Topps Tiles +1.3% pts (price & cost gains), other Group businesses are margin diluti
Slide 7: Adjusted Net Cash
Adjusted Net Cash ▪ Operational cash inflows (ex CTD) of £15.0m vs £13.6m last year, due to ▪ Cash tax of £0.3m (PY: £2.3m) due to statutory losses in prior increase in adjusted profits before tax years ▪ Working capital outflow of £0.7m (ex CTD) due to a reduction in ▪ Capex includes £2.8m on new w
Slide 8: Group Goal & Strategy
Group Goal & Strategy Environmental Operational & Digital Leadership Excellence 8
Slide 9: The Road to 365 £m
The Road to 365 10 – 15 20 – 25 35-40 15 – 20 25 – 30 10 – 20 248 £m All numbers are £m and are indicative - illustrating one potential route to delivery of the Mission 365 goal. B2B upgraded from £15m-£25m following acquisition of CTD 9
Slide 10: Category Expansion
Category Expansion Mission 365 opportunity - £25m-£30m sales Progress • Good initial progress, but more to do • Outdoor and LVT are now major categories and well embedded in the business • Wall panels (acoustic and shower), and porcelain splashbacks now launched in stores • Marketing improved and co
Slide 11: Topps Tiles Trader Digital Experience
Topps Tiles Trader Digital Experience Mission 365 opportunity - £15m-£20m sales Progress • New trade website launched – visible pricing, simplified trade registration, single basket checkout • New Customer Engagement Platform launched – significant improvement in trader comms • Enhanced trade credit
Slide 12: Business-to-business
Business-to-business Mission 365 opportunity - £35m-£40m sales CTD - A&D & housebuilder teams integrated into Commercial operations Progress - Warehouse & IT migrations complete - Group trade strategy developed with a clear role for each of our four trade - CMA disposal to complete in Q1 FY26 brands
Slide 13: Pro Tiler
Pro Tiler Mission 365 opportunity - £20m-£25m sales Progress • Relocation into new 140,000 sq ft facility (shared with CTD) – 3x more space • Operational capacity to deliver £50m goal • Operational improvements – 9pm order cut off & H2 sales growth accelerated • New product launches incl UK exclusiv
Slide 14: Tile Warehouse
Tile Warehouse Mission 365 opportunity - £10m-£15m sales Strategic Progress - Established summer ‘22, focussed on value conscious homeowners - The UK’s fastest growing digital tile specialist* - Focus on traffic (+20%), conversion (+33%), ATV and samples follow up Financials - FY sales of £3m, +82%
Slide 15: Strategy Summary
Strategy Summary Mission 365 - medium-term goal of £365m sales at 8-10% adj PBT margin Environmental Operational & Digital Leadership Excellence 15
Slide 16: First Impressions & Key Areas of Focus
First Impressions & Key Areas of Focus Alex Jensen Chief Executive Officer Designate 16
Slide 17: Alex Jensen, CEO Designate
Alex Jensen, CEO Designate My Background • International background with extensive retail, multi-site and B2B experience • Track record of growth including building new revenue streams • Led step-change in digital and data strategies • Builds high performing teams and evolves organisation capability
Slide 18: What I've been doing
What I’ve been doing Met all Visited all Selected Met with top colleagues businesses excellent suppliers at Shareholder via 9 cross- and listened new CFO to Bologna tile meetings country to customer start Spring exhibition roadshows feedback '26 18
Slide 19: Initial observations
Initial observations Strengths • Market and product leadership • Expert and engaged colleagues • Customer satisfaction and loyalty • Financial strength • Momentum on revenue and earnings and many more opportunities 19
Slide 20: FY26 Opportunities and Priorities
FY26 Opportunities and Priorities Execute plan to make CTD and Tile Warehouse profitable in 2026 Accelerate digital agenda, leverage customer data to drive sales and transition new IT system Sales excellence and category extensions Deliver trade growth strategy across Group Onboard new CFO and creat
Slide 21: Fired Earth
Fired Earth • Fired Earth brand, associated IP, website and £2.5m NBV of stock acquired for £3m • Highly respected brand - ranked 4 out of 100 in brand awareness (source – Salience) • Strategic fit – adds a premium brand to our offer, also strengthens our digital presence • Significant optionality -
Slide 22: Current Trading & Outlook
Current Trading & Outlook • Group revenue (excl CTD) remains in growth over first 9 weeks +3.3% YoY, Topps Tiles +2.0% LFL • Sales moderated due to weaker consumer confidence but we have tight control of costs • Government budget measures were in line with our expectations • CTD stores are deliverin
Slide 23: Q&A
Q&A 23
Slide 24: Appendix
Appendix 24
Slide 25: Group Trade Strategy / B2B Growth
Group Trade Strategy / B2B Growth • c.300 stores nationwide • Pureplay online plus direct selling team • Omni-channel platform • Consumables & tools only • Focusing on general builders and solus tile fitters • Focussing on fitters and smaller contractors • 22 store network, very strong trade bias •
Slide 26: Topps Group Trade Strategy
Topps Group Trade Strategy Relationship Commercial c.5m N/A N/A B2B Team c.£18m c.£35m Selling Channel Digital N/A N/A c.£145m (STORES) Physical N/A c.£20m Gen Builders Solus Fitters Small Contractors/FM Large Contractors Housebuilders A&D Customer 26
Slide 27: Mission 365 - Indicative Financial Outcomes
Mission 365 - Indicative Financial Outcomes Medium Term Metric Drivers Target £365m Group revenue Sales • Trader digital experience, category extensions, B2B opportunity, PTT, TW (+ £115m vs FY24) • c.2% improvement due to operational focus and mix management c. 51-52% GM% Gross Margin % • c.2% decl
Slide 28: Market Data
Market Data Sources: HMRC Monthly Property Transactions (residential); Bank of England mortgage approval data; Nationwide House Price Index; GfK Consumer Confidence Index; Barclays UK Consumer Spending Report 28
Slide 29: Adjusted to Statutory P&L Bridge
Adjusted to Statutory P&L Bridge Gross Sales Opex Interest PBT Profit £m £m £m £m £m Adjusted P&L 265.4 142.7 (127.2) (6.3) 9.2 Vacant property and closure costs (0.5) (0.5) Store impairment, reversal and lease gains/losses 2.5 2.5 Notional depreciation 5.7 5.7 Non-operational warehouse costs (0.8)
Slide 30: Balance Sheet Highlights
Balance Sheet Highlights FY 2025 FY 2024 * YoY Goodwill/Intangibles - £m 11.2 12.5 (1.3) Property, plant and equipment - £m 16.8 17.3 (0.5) Right-of-Use & Sublease Assets - £m 79.5 57.2 22.3 Inventory - £m 40.6 38.1 2.5 Receivables/Payables/Provisions - £m (51.3) (46.7) (4.6) Borrowings - £m (11.0)
Slide 31: Adjusted Net Cash Flow
Adjusted Net Cash Flow FY25 FY24 YoY £m £m £m £m £m £m Cash generated from operations including leases, before 15.0 13.6 1.4 movements in working capital and CTD/CMA Changes in working capital (excluding CTD/CMA) (0.7) 6.4 (7.1) CTD operational cash flows and CMA advisory fees (5.4) (1.5) (3.9) Net