74.07% of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.07% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
header_logo
Language
    rch
    Client Portal
    Client Portal
    Open account
    Start trading
    rch

    Topps Tiles share price hit by early 2020 profits warning

    It can be said that there are few stocks and sectors outside the pharma area who can prove comprehensively that they were doing worse before the pandemic broke in March, than after. But in the case of the home improvement group Topps Tiles share price, we are looking at a company which literally delivered a profits warning at the end of February, just weeks before the COVID-19 lockdown began for the first time.

    In some ways the profits warning was inevitable given the way that at the time of the Q1 update Topps Tiles said that like for like sales were down over 5%. At the time this was said to be due to political uncertainty, in the wake of the General Election, and ongoing Brexit uncertainty. Topps Tiles shares fell sharply at the time.

    Learn more about shares trading with us

     

    TPT share price pre-tax profits forecast

    Rather tellingly, broker Liberum then cut its full year pre-tax profit forecast from £13.5m to £7m. Now as we approach the full year results due out on December 1, it will probably be regarded as a triumph if profits come in at anywhere near £7m. Nevertheless, the fundamental picture for the Topps Tiles share price has been far more complex, and perhaps rather better than might have been expected given the struggle reported just before the pandemic began.

    To see all upcoming news and data releases that’ll have an effect on the financial markets, check out our Economic Calendar. It’ll cover all major releases from global economies and give you the exact time the release is due, the previous data, forecast data and actual data (once released).

     

    A rare retail winner in Topps Tiles shares

    Something which few would have anticipated in the wake of the pandemic in March this year is that there would be some retail winners. It required even more imagination to anticipate that with consumers confined to their homes, they might consider home improvement. This would either be in order to make their immediate environment more comfortable, but also to repair the wear and tear from being at home almost all the time.

     

    Topps Tiles share price H1 loss

    In fact, things got worse before they got better, with May’s first half loss revealing a £4m deficit. This compared to a previous £5.2m profit, underlining the way that the negative pre-pandemic momentum was still very much in force. That is not to say that there were not some plus points. For instance, the cash position for Topps Tiles shares was strong at £14m, and likely to be helped by passing on the dividend. Topps also had the option of selling assets to raise further cash.

     

    Liberum buy rating for Topps Tiles shares

    Perhaps the real cue to a turnaround though, was the reopening of stores, a process complete by the early summer. This coincided with Liberum actually reinstating Topps Tiles with a buy rating, on the basis of the company’s management being proactive, and the £14m cash pile.

    Perhaps the real key to fundamental improvement arrived soon after as Topps Tiles became very much a part of the furloughed workers summer staycation routine. This phenomena has never really gone away since. Indeed, it was outstanding that for the six weeks to the end of August like for like sales were up 15%.

     

    Support for TPT shares and the TPT share price

    What will be particularly interesting as we head towards the full year results in December is whether the support for Topps Tiles shares continues? This is because they have been caught up in the COVID-19 vaccine stock rotation, as investors switch from technology and growth sectors, to value and recovery. 

    Key in the wake of next month’s results is how much the summer recovery will counteract the initial 2020 setback? Judging by the company’s call of a fall in revenues from £219m to £192m it could very well be the case that the fall in profits to £7m is no worse than the ultimate result. Certainly, anything over £7m would be regarded very positively by investors.

     

    How to trade shares with ATFX

    Looking to trade Topps Tiles shares and other major company shares? Open a live or demo account with ATFX to get up to speed. Start trading now to benefit from competitive spreads, high-quality trade execution, and no commission.

    1. Register for an account or log in to your existing account

    2. Open MT4 either on your desktop or mobile

    3. Search for Topps Tiles shares in the market watch or symbols window

    4. Choose your position size

    5. Hit buy or sell, and then confirm the trade

     

    Topps Tiles share price daily chart

     

    Daily chart showing Topps Tiles share price daily movements for 2020

     

    Looking to learn more about risk management and how it can benefit your trading? Check out our Risk and reward ratio article for more insight.

    Take the opportunity to develop your risk management strategy. Understand five key risk management techniques to help you look after your funds.

    Last Updated: 19/11/2020

    This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


     

    Recent news

    Bitcoin - BTCUSD Cryptocurrencies
    Bitcoin price bubble re-emerges, how high can BTCUSD reach in 2021?

    The mania in cryptocurrencies is back, and Bitcoin prices, BTCUSD, are just 1200 USD from ...

    Shares share price earnings stocks Walmart
    Walmart shares price pandemic challenge

    It can be said that for retailers of all shapes and sizes 2020 to date has been a challeng...

    Indices Shares share price earnings stocks Cineworld
    Cineworld share price could slump to 33 from 44.79 as cash reserves run out

    Cineworld share price had a stellar return of 331.23% from its October low to November hig...

    Shares share price earnings stocks iQIYI
    Bullish sentiment for the iQIYI share price

    It is usually the case that even with the most bullish of stocks and where market sentimen...

    GBPUSD XAUUSD
    GBPUSD could breach monthly high & reach 1.34 on UK inflation turning up

    This morning, the GBPUSD leapt higher by 20 pips as the latest ONS inflation figures showe...