UK’s Topps Tiles profit nearly halves on weak home repair and maintenance demand

(Reuters) -British tile retailer Topps Tiles posted an about 50% slump in annual profit on Tuesday, hurt by weak demand in home repair and maintenance sector, as broader economic woes continue to weigh on customer spending.

The UK housing repair, maintenance and improvement (RMI) segment has been under persistent pressure, hit by fears that the Bank of England interest rate cut cycle might turn slower due to rising inflation, fuelled by the Labour government’s ambitious new budget plans amid subdued new-builds demand.

Although the start of the new financial year has seen a return to modest sales growth for the group, the forward macro indicators for the company’s market remain mixed, in particular weaker consumer confidence, CEO Rob Parker said in a statement.

The UK’s largest tile retailer, with more than 300 stores, reported adjusted pre-tax profit of 6.3 million pounds ($7.9 million) for the year ended Sept. 28, compared with 12.5 million pounds a year earlier.

In October, Britain’s largest buildings materials supplier Travis Perkins lowered its annual profit outlook for the second time in three months amid weakness in its merchanting business.

($1 = 0.7972 pounds)

(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Rashmi Aich)