Topps Tiles has reported slower like-for-like sales growth in the first 13 weeks of its new financial year.
However, co-founder and chief executive of the company, Barry Bester, told shareholders at the annual meeting that despite a challenging retail environment, the company believes the prospects for future growth are positive.

He said: "There continues to be an underlying growth trend in the tile retail market with forecasts indicating it will increase in volume by over 15% by 2011."

Mr Bester reported that like-for-like (lfl) revenue rose 0.8% ((5%: 2007) in a 'persistently tough' market.

The UK showed overall revenue growth of 6.6% (12.1% 2007) with lfl revenue up 0.7% (4.6%: 2007).

The company has 302 stores in the UK and is on course to open 20 more in the current financial year.

In Holland, where it has 20 outlets, it reported overall revenue growth of 16.5% (34.8%: 2007) with lfl revenue up 2.6% (19.5%: 2007).