Topps Tiles has pointed to a slowing housing sector and challenging market conditions after it reported a sales slump. The group said like-for-like sales fell 4.7% in the third quarter as "weaker macro-economic conditions" begin to bite.

Chief executive Matthew Williams said trading in the period reflected "a more challenging" environment and the group pointed to tough comparatives last year when housing transactions were on the up ahead of stamp duty changes which came into effect in April 2016.

"At the time of our interim results in May we pointed to a more challenging macro-economic environment and this has persisted through the remainder of the third quarter,” continued Mr Williams.

"Tougher comparatives resulting from the changes to stamp duty in the prior year were a feature throughout the period and we have seen a modest improvement in trading over recent weeks as they have begun to ease."

Topps said it is now trading from 367 stores compared to 348 last year, having opened a net nine stores in the quarter and expects to end the year with around 370.

"Against this background, we will continue to extend our market leadership position by focusing on our proven strategy of 'Out-Specialising the Specialists'. In particular, we continue to evaluate selective acquisition opportunities in the commercial segment of the UK tile market."

Liberum analyst Adam Tomlinson said Topps "remains a clear market leader. We expect medium-term growth to be driven by improving UK residential repairs, maintenance and improvement spend, ongoing store roll-outs and the nascent opportunity within the UK commercial tile market."