Topps Tiles has seen its adjusted operating profit fall by 2.8% and its adjusted profit before tax drop to the tune of 1.9% year-on-year for the 26 weeks ending April 1, 2017.

Group revenue stood at £106.6m, down 1.3% year-on-year. Despite this, bosses said the retailer delivered a “solid performance” in the “more challenging market” against strong comparatives for 2016, when sales benefited from changes to Stamp Duty.

The results saw a gross margin of 61.2%, with underlying gross margin “broadly in line with the prior year”. Net debt was reduced by £1.8m year-on-year to £26.6m.

Eight new stores opened during the sales period, bring the total number to 359. With the successful launch of a new employer brand, job applications were up 40% compared with last year.

Chief executive Matthew Williams said: “Our results for the first half reflect the more challenging macro-economic environment we have traded through so far in 2017 and the strong performance we delivered in the corresponding period in 2016 when housing transactions were boosted ahead of the changes to Stamp Duty.  While these tougher comparatives begin to ease from the end of June, the key macro indicators for our market are weaker year-on-year and we are taking a prudent view of the second half prospects.  

"Against this background, we remain confident in the longer term outlook for the business, as evidenced by the 10% increase in the interim dividend.  We will continue to focus on executing our proven strategy of "Out-Specialising The Specialists" and to invest in important sources of future growth.  In particular, our recently completed analysis of the UK commercial tile market has confirmed it as attractive and we are now evaluating a number of small acquisition opportunities to increase our reach into this part of the market."