Topps Tiles Stocking Up In Preparation For Brexit

There might be some issue for Brits looking for medicine when Brexit rolls around, but for those looking for blue bathroom tiles and the like, there won’t be too much issue.

Topp Tiles, a major company in the UK, is stockpiling its top sellers in case of Brexit disrupting their business operations. The Leicestershire-based business, which recently posted profit loss but positive annual results, noted that it was buying enough of its bigger sellers to keep it running for several weeks following Britain’s scheduled departure from the EU on March 29.

The Grove Park-based business, like other business in the UK, is keeping track on what effects Brexit might have on the country, which might include, among other things, a reduction in the levels of confidence from consumers, which could lead to reduced sales, as well as a smaller labour pool.

Other companies have also been doing similar product stockpiling, like Mr. Kipling cakes firm Premier Foods, major catering company Compass, and others.

According to Chief Financial Officer for Topps Tiles, Rob Parker, there’s a notable level of uncertainty the country and its businesses right now. Hence, he says, Topps is doing a bit of stockpiling for 2019 in case the UK experiences a disruption of stock when Brexit happens.

The plan, Parker reveals, is to prioritize on the top 100 key selling products, then bring in several weeks  of products, about five or six, as a failsafe on those lines in case the country experiences short-term disruption.

Topps Tiles CEO Matt Williams said that there wasn’t as much concern regarding European staff having trouble residing in the UK and he doesn’t think that consumer confidence will dip, noting that it already took a hit when the actual referendum for Brexit was held back in 2016. He expresses belief that the consumer market is notably resilient, and they’re confident that they’ll continue to well, in spite of any rough patches ahead.

These plans came following Topps showing their 25% decline in pre-tax profits for 2018, as it absorbed the cost of bringing in and integrating their latest acquisition, Parkside, which they acquired in November 2017.

That particular aspect of the company’s operationsis expected to bring in further losses before finally raking in profit, while sales from the Parkside subsidiary are expected to double from its current value of £2.1 million.

While Topps Tiles’ overall pre-tax profits, adjusted for one-offs like Parkside, dropped to £16 million, overall group revenue went up by 2.4% at £216.9 million.

Williams says that, while they’re cautious about the outlook, they have confidence that their expansion into the market of blue bathroom tiles and commercial tiles, coupled with effective retail operations, means that the company has a strong foundation for any future endeavours.