Topp Tiles trades from 321 stores in Britain and Holland, and on Tuesday posted a 45 percent fall in year profit to 16.3 million pounds, a drop that was better than expected, and which the company said was one of the signs of a return to stability in the new financial year.
The tile retailer's shares have more than quadrupled over the past year. Government data has recently indicated a possible rise in British consumer spending following the downturn this time last year.
"It would not be a surprise if the reduced financial risk proved positive for the shares even if the (share) issue is dilutive," said David Stoddart, analyst at Altium Securities.
Topps Tiles Chief Executive Matthew Williams said that the share placing "does give us that financial flexibility and an extra level of comfort should sales, for whatever reason, take a lurch down again".
"It also gives us the opportunity to get back on the front foot in terms of expansion, as and when we see opportunities arising in the property market."
Edited by Ellie Duncan
Source: http://www.toppstiles.co.uk/investors.asp
The tile retailer's shares have more than quadrupled over the past year. Government data has recently indicated a possible rise in British consumer spending following the downturn this time last year.
"It would not be a surprise if the reduced financial risk proved positive for the shares even if the (share) issue is dilutive," said David Stoddart, analyst at Altium Securities.
Topps Tiles Chief Executive Matthew Williams said that the share placing "does give us that financial flexibility and an extra level of comfort should sales, for whatever reason, take a lurch down again".
"It also gives us the opportunity to get back on the front foot in terms of expansion, as and when we see opportunities arising in the property market."
Edited by Ellie Duncan
Source: http://www.toppstiles.co.uk/investors.asp
