topps tiles plc 
annual report and financial statements 2010
great  
choice
great  
price s
great  
ser vice 
topps tiles plc
thorpe way grove park enderby
leicestershire le19 1su
t 0116 282 8000 
f 0116 282 8115
wwwtoppstilescouk
topps tiles plc annual report and financial statements 2010 introduction
“this has been a robust performance from the    
 business during a tough trading period which 
   demonstrates the effectiveness of our strategy  
  and the strength and resilience of our business  
 model through the prudent management of 
 costs and careful control of our business we    
 have significantly reduced our net debt position  
 during the period and continued to build on our  
 market leading position” 
 matthew williams chief executive officer
inside this year’ s report
12
8
4
grea t servi ce grea t choi ce great prices
r eview of  
the business
1 the year in brief
2 our strategy
3 chairman’s statement
5 chief executive’s statement
9 business review
17 corporate social responsibility
governance
20 directors
21 directors and advisors
22 directors’ report
25 corporate governance  
 statement
27 remuneration report
 
 
 
financial  
statements
30 independent auditors’ report  
 – consolidated financial  
 statements
31  consolidated statement of 
financial performance
31  consolidated statement of 
comprehensive income
32   consolidated statement of 
financial position
33  consolidated statement of 
changes in equity
34   consolidated cash flow 
statement
35   notes to the consolidated 
financial statements
63  independent auditors’ report 
– company financial statements
64 company balance sheet
65 notes to the company  
 financial statements
additional 
information
67 five year record
68 notice of annual   
 general meeting
71 explanatory notes to  
 the notice of annual  
 general meeting
73  appendix – principal features 
of the share incentive plan
75 the team
80 store locations
h
april 2010 sees the proud launch  
of our successful new website
 plc 
annual report and financial statements 2010
store locations
topps tiles – store numbers
stores at the beginning  
of the period 265
new stores opened 17
subtotal 282
closures including brand swaps –7
total 275
tile clearing house – store numbers
stores at the beginning  
of the period 44
new stores opened –
subtotal 44
closures including brand swaps –7
total 37
designed and produced 
by r adley yeldar
wwwrycom
stores operated by the 
group in north region
 50 
stores operated  
by the group  
in midlands region
 1 1 3
stores operated  
by the group  
in south region
 15 
stores operated  
by the group  
in wales
stores operated  
by the group  
in london
56 
63 
midlands
north
scotland
south
wales
london
stores operated by  
the group in scotland
15  financial performance
current trading and outlook
the group is now trading from 312 stores 2009 309 stores in the uk
in the first seven weeks of the new financial period group revenues increased by 29 and increased 
by 32 on a likeforlike basis
  comparative numbers are presented after restating the statement of financial performance to reflect the dutch business as a discontinued operation further  
 information is provided in note 1 1
  2010 adjusted operating profit is adjusted for exceptional items being the impairment of plant property and equipment of £08 million 2009 £10 million  
 and other restructuring and oneoff costs of £04 million 2009 £05 million
  2010 adjusted profit before tax is adjusted for the effect of exceptional items above plus
 – £28 million non cash charge relating to the interest rate derivatives the group has in place per ias 39 2009 £58 million
 – property disposal gain of £01 million 2009 loss of £03 million
 adjusted for the post tax effect of nonrecurring items highlighted above
please note this report has been prepared for the 53 weeks ended 2 october 2010 and the comparative period has been prepared for the 52 weeks ended  
26 september 2009 with the exception of the group likeforlike revenue measure which is comparable the reported figures are presented on this basis  
and are not entirely comparable the impact of the additional week is to increase revenue by £36 million and operating profit by £04 million
£1824m
group revenue
2009 £1788m
£199 m
operating profit
2009 £213m
£124m
profit before tax 
2009 £99m
 1 p
dividend per share
2009 nil
17 
group likeforlike revenue 
2009 –131
£211 m
adjusted operating profit 
2009 £228m
537 p
basic earnings per share 
2009 100p see note 13
£491 m
net debt 
2009 £712m
587 
group gross margin
2009 592
£1 63m
adjusted profit before tax 
2009 £17 5m
618p
adjusted basic earnings per share 
for continuing operations 
2009 7 34p see note 13
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annual report and financial statements 2010
1
review of the business governance financial statements other information
the year in brief store  
layout
our stores are clearly identified with bright eye
catching exterior signage bearing the topps tiles 
or tile clearing house branding our average 
store size is around 6250 square feet and is 
merchandised in a mini warehouse style including 
separate areas of the store for wood flooring and 
natural stone stores are designed to be customer 
friendly with point of sale which aims to give 
informative product details and clear pricing
product 
range
as a specialist we are able to offer a huge range 
of products with many of them in stock and 
available to take away many of our key lines  
are imported directly from factories all over the 
world which ensures that we can offer the very 
latest tastes and trends to our customers often  
on an exclusive basis
the topps’ strategy is focused on delivering 
outstanding value to our customers to ensure 
they always “return and recommend” this has 
enabled us to retain our competitive advantage 
built upon the strong foundations of customer 
service store locations store layout and 
product range
customer 
service
customer service remains our number one priority 
and it is our policy to be honest helpful and 
knowledgeable but never pushy we operate 
an online elearning centre which all staff are 
enrolled to and new courses are issued regularly to 
ensure our staff have the best product knowledge 
in the industry to ensure our customer service 
always meets these high standards all of our 
stores are mystery shopped every month and 
customer response cards indicate that 97 6 of our 
customers rate our service “good to excellent”
store  
locations
we make our store locations as easy for customers 
to get to as possible we operate from highly 
visible locations on or close to busy roads and 
always with parking facilities we have over 300 
locations across the uk which ensures that the  
vast majority of customers will have a store near 
to them
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annual report and financial statements 2010
2
our strategy in our interim management report we 
noted that the retail environment had 
continued to be challenging particularly 
for those retailers dependent on 
discretionary spend i am encouraged 
to be able to report that we have seen 
a return to likeforlike growth across the 
financial period as a whole
our performance for the period has 
demonstrated the resilience of our 
business model and the prudence of 
management’s decisions regarding the 
pursuit of growth expansion of the store 
estate and marketing of the business  
we have continued to manage the 
business prudently focusing on cost 
control and we remain firmly cash 
generative with a secure balance sheet 
and increasing strength in our trading 
levels we are confident that we are 
well positioned to benefit when market 
conditions materially improve and 
consumer confidence returns  
more strongly
financial results
total group revenue for the 53 week 
period has increased to £1824 million 
2009 £1788 million for the 52 week 
period with likeforlike revenue for the 
period showing an increase of 17 on 
last year operating profit for the period 
was £199 million 2009 £213 million 
giving a profit before tax of £124 million 
2009 £99 million basic earnings per 
share were 537p 2009 100p see  
note 13 
 
 
 
during the period we have incurred 
£12 million 2009 £15 million of 
exceptional charges relating to the closure 
and relocation of stores in the uk  
on an adjusted basis we have  
generated an operating profit of  
£211 million 2009 £228 million  
and a profit before tax of  
£163 million 2009 £17 5 million 
adjusted basic earnings per share for 
continuing operations were 618p 
2009 7 34p see note 13
dividend 
the board has given careful consideration 
to the resumption of dividend payments 
trading has improved and we are 
encouraged that we have seen a good 
level of stability from which we feel we 
can plan and move forward we have 
also commenced early negotiations 
with our existing lenders to extend our 
current banking facilities and based 
on those discussions the board is now 
confident that new committed facilities 
will be in place over the coming months 
as a result of progress on these two key 
issues the board feels that the resumption 
of dividend payments at this time is 
appropriate the board is recommending 
to shareholders a final dividend of  
1p per share £19 million in total  
subject to approval by shareholders  
at the annual general meeting this  
will be payable on 31 january 201 1 to  
all shareholders on the register as at  
31 december 2010 
 
 
 
 
people 
the company’s staff remain fundamental 
to the success of the business through their 
delivery of outstanding customer service 
this service ethic sets topps tiles apart 
from its competitors and underpins the 
robust business model that has proved  
so valuable in enabling the group to  
withstand the economic downturn  
i would like to extend the board’s thanks 
and gratitude once again to everyone  
in the group for their continuing efforts 
and hard work 
outlook
the management team has maintained 
a keen focus on delivering profits whilst 
prudently managing costs continuing 
to invest in infrastructure and pursuing 
targeted growth of the store estate 
the business is performing in line with 
management’s expectations and current 
trading figures also offer cause for 
confidence
we are however conscious of the 
demands on our consumers and that 
the recently announced government 
spending reductions may have an impact 
on the macro economy as we look 
forward we remain confident that our 
business is both well positioned to benefit 
from further improvements in consumer 
confidence and is also well protected 
against further economic pressures
barry bester
chairman
the management team has maintained a keen focus 
on delivering profits whilst prudently managing costs 
continuing to invest in infrastructure and pursuing targeted 
growth of the store estate the business is performing in 
line with management’s expectations and current trading 
figures also offer cause for confidence 
£1 63m
adjusted profit before tax 
2009 £17 5m
 1 p
dividend per share
2009 nil
    as explained on page 1
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annual report and financial statements 2010
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review of the business governance financial statements other information
chairman’s statement great  
choice
at topps tiles we have an unrivalled collection 
of products with the latest designs sourced from 
around the world our massive range of tiles and 
wood flooring offers great choice from the period 
beauty of natural stone and real wood to the 
versatility of mosaics and the contemporary feel  
of glass we’ve got ‘the look’ to suit every style 
 plc 
annual report and financial statements 2010
4 topps tiles continues to be the market 
leader in its sector with a strong and 
resilient business model the economic 
environment has continued to be 
challenging for retailers and to mitigate 
the possible impact on our performance 
we have maintained our focus on 
delivering outstanding customer service 
and providing excellent value high quality 
products this focus has ensured that we 
have delivered a robust set of financial 
results against what remains a challenging 
economic backdrop when combined 
with the continued prudent management 
of costs and material reduction in net 
debt i feel the business is financially  
well positioned and we can progress  
our plans for growth
uk store development  
and expansion
over the last three years our store 
expansion strategy was realigned to take 
account of the changes in the economic 
environment in the last 12 months we 
have again returned to store growth and 
have opened 12 new stores and closed  
or relocated nine stores resulting in a  
net increase of three stores
the group is now trading from a total of 
312 outlets throughout the uk and in the 
coming year we have plans in place to 
increase the size of the business by  
at least 10 new stores
in order to facilitate our plans for store 
expansion and to enable us to integrate 
our supply chain further we have 
commenced construction of a second 
warehousing facility at our leicestershire 
headquarters at an expected cost of 
£3 million this will form a key part of 
our logistics strategy over the coming 
years and we anticipate it will be fully 
operational by april 201 1 
 
 
topps tiles
we have opened a net 10 new stores 
and now have a total of 275 topps 
outlets this includes eight new openings 
and five stores we have rebranded from 
tile clearing house tch we have 
closed seven stores in the period four  
of which have been relocated to 
improved sites
our ecommerce business continues to 
make good progress now offering the 
vast majority of our instore offer and in 
addition some internet only products 
customers are able to research projects 
browse the ranges and make decisions 
about projects before final purchase 
which can then be completed either 
online or instore depending upon 
customers’ preference this part of the 
business now represents approximately 
1 of our turnover and we anticipate 
another year of strong growth we will 
continue to invest in this important source 
of growth and expect to see it play an 
increasingly important role in our overall 
customer offer 
tile clearing house tch
tch remains focused on trade customers 
and jobbing builders operating a “cash 
and carry” type format during the period 
we have refitted and rebranded five stores 
to the topps format and closed a further 
two a net reduction of seven stores to 
37 outlets results from rebranded stores 
demonstrate that a higher level of turnover 
is now being generated which we 
believe is due to stronger branding and 
an enhanced customer offer available  
from the topps format 
 
 
 
 
 
 
holland
we reported in the interim management 
report that during the period the board 
had taken the decision to withdraw 
support and funding for its lossmaking 
dutch subsidiary as announced on  
18 december 2009 
as a consequence of the notification 
of the withdrawal of support the local 
management team took the decision 
to cease trading and appoint an 
administrator
this series of actions and subsequent 
removal of the dutch business from the 
group’s consolidated financial statements 
has resulted in a £15 million oneoff 
non cash gain this gain reflects the final 
accounting entries relating to the dutch 
subsidiary and includes the write down 
and releases of the remaining balance 
sheet items principally creditors onerous 
lease provisions stock and overdraft 
balances this has been presented in the 
consolidated income statement under 
“discontinued operations” together with 
the losses from the comparative periods 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

for more information  
please visit 
wwwtoppstilescouk
we are encouraged by current trading despite the 
challenging economic outlook and subdued levels of 
consumer confidence we are confident that the business 
will benefit from our growth strategy and our continued 
focus on delivering outstanding value to our customers
£211 m
adjusted operating profit 
2009 £228m
£1824m
group revenue
2009 £1788m
  as explained on page 1
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annual report and financial statements 2010
5
review of the business governance financial statements other information
chief executive’s statement h
back on tv – with national weather 
sponsorship we cleverly merge some  
of our most stunning photography with 
all weather scenes
 as explained on page 1
17 
group likeforlike revenue 
2009 –131
h
our online development 
includes entry into the  
mobile devices arena  
our brochure and store 
locator is now available  
as an iphone app 
 plc 
annual report and financial statements 2010
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
marketing advertising and 
sponsorship
for the majority of the financial period 
we have maintained a more cautious 
approach to marketing spend and activity 
levels remain at an historically low level  
the marketing we have engaged in 
has been focused on tactical store 
based activity rather than external 
media campaigns however during the 
second half of the period we secured a 
competitive television weather sponsorship 
campaign with itv in london which was 
then rolledout on granada tv followed 
by a national campaign which is running 
currently we will continue to focus 
on tight cost control of our marketing 
activities but will also continue to review 
where great value opportunities exist that 
allow us to focus on promoting our brand
our commitment to our local communities 
through sponsorship and charitable 
activity remains strong we aim to make 
positive contributions to those communities 
served by our stores working closely with 
them to promote our priority of being a 
“good neighbour” we currently sponsor 
over 310 youth football teams nationwide 
providing the teams with new kits and 
equipment our work for the charity 
help for heroes which we have been 
supporting since 2008 has gone from 
strength to strength and we have  
already helped to raise over £120000 
we also work with the british association 
of modern mosaic “bamm” 
 
 
 
 
 
 
 
 
 
 
 
sponsoring two national competitions 
and supporting the promotion of mosaic 
art in schools and community groups 
countrywide alongside this work with 
the bamm topps tiles participated in 
one of london’s biggest ever public art 
events the elephant parade 2010 in 
support of the charity elephant family 
we sponsored a lifesized model baby 
elephant named phoolan which was 
decorated entirely in mosaic tiles and 
was installed outside the natural history 
museum highlighting the plight of 
endangered asian elephants
staff development and 
customer service
we have always said that our staff are 
fundamental to fulfilling our key objective 
of delivering excellent customer service 
we believe it is imperative to assist the 
professional development of our staff 
to deliver this service and we continue 
to be rigorous in the recruitment and 
retention of high calibre employees who 
are committed to upholding this customer 
service ethic and contributing to the 
ongoing success of the business  
we encourage staff to learn as they 
work and have recently completed 
some significant maintenance and 
upgrade work to our sophisticated in
store elearning training system these 
improvements have facilitated the recent 
introduction of vocational qualifications to 
our customer facing staff which not only 
acknowledges their existing skills but also 
signposts their future development needs 
as well as having a key role in succession 
planning a successful pilot scheme has 
led to a national rollout of a certificate 
in retail – level 2 accredited by city 
 guilds plans are already underway 
for a level 3 award as well as a young 
apprenticeship programme
 
 
6
chief executive’s statement continued h
in july we launched the new prestige 
stone range our finest quality natural 
stone collection
976
customer satisfaction rating 
2009 988
review of the business
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annual report and financial statements 2010
other information financial statements governance
7
all our staff are incentivised with 
competitive benefit packages and 
performance based rewards and  
we encourage internal promotion  
we anticipate that staffing levels will 
increase as we start to expand the store 
base and further develop new areas  
of growth
our customer satisfaction levels remain 
consistently high with 97 6 of customers 
recently surveyed expressing levels of 
satisfaction as “good to excellent”  
2009 988 these levels of satisfaction 
are driven by the performance of 
our friendly and knowledgeable staff 
combined with a product and value 
service unmatched by our competitors 
all of our stores carry a wide range 
and supply of stock we offer a loana
tile service a tile cutting service and a 
buyback service allowing customers to 
“sell back” undamaged tiles within 45 
days of purchase we also supply a free 
“how to” dvd and have a comprehensive 
selection of helpful “topps tips” on our 
website in addition each of our stores 
has links with accredited traders who can 
provide customers with a topps’ approved 
installation service
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
corporate responsibility
the management team at topps tiles is 
committed to a corporate responsibility 
policy that ensures the group’s business 
is conducted according to socially 
responsible environmentally friendly and 
ethical policies we are very proud of the 
work that we have been involved in and 
have endeavoured to work responsibly 
with all of our stakeholders for a number 
of years
the areas we have given most focus  
to are
• community and charity
• environment
• our people
our policy is published on our website  
at wwwtoppstilescouk and more detail 
can be found in this report
topps tiles is pleased to be a constituent 
member of the ftse4good uk index 
the market
topps has seen its position as the uk’s 
leading tile retailer further strengthen  
as market share has grown to 25 
2009 23 source mbd market 
conditions remain tough but despite 
this we have managed to outperform 
the market and grow share due to 
our unwavering focus on offering our 
customers outstanding value
tile consumption in the uk continues to be 
low in comparison to the rest of europe 
roughly onethird compared to northern 
europe source mbd and longterm 
growth projections based on increases 
in housing stock and consumer usage 
of tiles remain attractive there is the 
potential for over 400 topps tiles  
stores in the uk 
current trading and outlook
in the first seven weeks of the new 
financial period group revenues 
increased by 29 and increased by 
32 on a likeforlike basis
we are encouraged by current trading 
despite the challenging economic 
outlook and subdued levels of consumer 
confidence we are confident that the 
business will benefit from our growth 
strategy and our continued focus on 
delivering outstanding value to our 
customers
matthew williams
chief executive officer great  
prices
at topps tiles we not only offer the biggest choice 
of tiles and wood flooring we are committed 
to offering our customers the best tiles at the 
best prices plus our customers can shop with 
confidence with our lowest price guarantee 
so whether our customers are tiling the smallest 
of rooms or the whole house we have quality 
products to suit every budget
8 the board is encouraged by the performance during the 
period which has demonstrated the effectiveness of our 
strategy and the strength of our business model we have 
continued to deliver operating profit reduce net debt 
and generate cash the board believes that the business 
is well placed to take advantage of a contraction in the 
competition and a return of consumer confidence
25
group share of the uk tile  
market 
2009 23
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annual report and financial statements 2010
9
review of the business financial statements other information governance
cautionary statement
this business review has been prepared 
solely to provide additional information 
to shareholders to assess the group’s 
strategies and the potential for those 
strategies to succeed the business review 
should not be relied on by any other party 
or for any other purpose
the business review contains certain 
forwardlooking statements these 
statements are made by the directors 
in good faith based on the information 
available to them up to the time of 
their approval of this report and such 
statements should be treated with caution 
due to the inherent uncertainties including 
both economic and business risk factors 
underlying any such forwardlooking 
information
the directors in preparing this business 
review have complied with section 417 
of the companies act 2006 this business 
review has been prepared for the group 
as a whole and therefore gives greater 
emphasis to those matters which are 
significant to topps tiles plc and to its 
subsidiary undertakings when viewed  
as a whole
 
 
 
 
 
nature objectives and strategies 
of the business
topps tiles is a specialist tile and wood 
flooring retailer with 312 outlets across 
the uk and is the country’s largest retailer 
of its kind with a 25 market share the 
group operates two retail brands topps 
tiles and tile clearing house topps is 
the uk’s leading branded tile retailer 
with 275 stores offering wall and floor 
tiles natural stone laminate solid wood 
flooring and a comprehensive range of 
associated products such as underfloor 
heating adhesives and grouts  
tile clearing house comprises a further 
37 stores nationwide focusing on a mini 
warehouse type format and a “when it’s 
gone it’s gone” style customer offer
the group strategy is focused upon 
delivering outstanding value and service 
to our customers the key elements 
to the success of this strategy are 
the professionalism of our staff store 
locations store layout product choice 
and availability
key operational objectives
• deliver outstanding value for money  
 and service to ensure customers always  
 “return and recommend”
• maintain our market leading position 
• manage the store estate prudently   
 opening new stores where opportunities  
 arise that complement the existing   
 estate
• constant evolution of instore customer  
 offer to maintain our competitive   
 advantage
• continued development of the 
 ecommerce offering to maintain   
 leading edge customer service
• ongoing review of the store portfolio  
 to ensure our estate is keeping track  
 with consumer shopping patterns and  
 our cost base is as efficient as possible
key financial objectives 
• primary focus on increasing revenues  
 and cash generation maintaining tight  
 cost control and continued reduction in  
 net debt 
• maximising earnings per share and  
 shareholder returns including biannual  
 review of our dividend policy
• ongoing supplier tendering and   
 benchmarking of nonstock suppliers
• managing the group’s exposure to   
 fluctuations in foreign exchange rates
• maintaining a capital structure which 
  enables an appropriate balance of 
 financial flexibility and capital efficiency
progress against these objectives is 
discussed throughout this report and 
where appropriate measures are utilised 
these are included in the key performance 
indicators section
 
business review key performance indicators kpis
the directors monitor a number of 
financial and nonfinancial metrics and 
kpis for the group and by individual 
store including
53 weeks to
2 october
2010
52 weeks to
26 september
2009
financial kpis
likeforlike sales growth yearonyear  17 –131
total sales growth yearonyear  20 –103
gross margin  587 592
adjusted pbt £163m £175m
net debt £491m £712m
stock days 121 128
 
nonfinancial kpis
market share  25 23
customer satisfaction  976 988
number of stores 312 309
312
number of stores  
trading across the group
2009 309
h
our new metro glass range works 
brilliantly in a retro style kitchen
 comparative numbers have been restated to exclude the impact of the dutch business which is now a   
 discontinued operation
  as explained on page 1
h
our newly relocated stratford store 
looking smart and ready for business
 plc 
annual report and financial statements 2010
10
 
 
 
 
 
 
 
 
 
 
 
 
operational review 
the group’s focus remains on effective 
and efficient trading to minimise the 
impact of the continuing challenging 
economic cycle our primary objectives 
continue to be centred on optimising 
returns from the existing estate careful 
management of our cost base and 
improving our financial flexibility  
the board is encouraged by the 
performance during the period which 
has demonstrated the effectiveness of 
our strategy and the strength of our 
business model we have continued 
to deliver operating profit reduce net 
debt and generate cash the board 
believes that the business is well placed 
to take advantage of a contraction in the 
competition and a return of consumer 
confidence 
over the financial period we have 
maintained our focus on cost control 
and have only seen increases in costs 
where we have decided that additional 
investment was appropriate or business 
performance has driven higher rewards 
for staff key areas of additional 
expenditure have been marketing and 
employee profit share further detail 
of expenditure is provided within the 
financial review 
business review continued h
we continue to offer a great  
selection of solid engineered  
and laminate flooring
x
our range of glass spashbacks 
available in 20 colours creates  
the kitchen ‘wow’ factor
h
we’re ‘bang on trend’ with our new 
vintage style crackle glaze tiles 
available in a range of colours

for more information  
please visit 
wwwtoppstilescouk
 plc 
annual report and financial statements 2010
11
review of the business governance financial statements other information
risks and uncertainties
the board conducts a continuing review 
of key risks and uncertainties the board’s 
primary focus when reviewing these risks 
and uncertainties over the last 12 months 
has included
•  the continuing challenges of the uk 
economy and the anticipated business 
impact
•  balancing the group’s plans for uk 
growth against the uncertain economic 
outlook
•  ensuring that the group’s capital 
structure remains appropriate and 
that future funding requirements 
are accessible
uk economy
the board is encouraged by the recent 
financial performance of the group  
the board monitors the sales per store on 
a 52 week rolling average basis and this 
metric has grown at a small but consistent 
rate since september 2009 equivalent  
to an annualised growth rate of 17  
the uk economy continues to face a 
number of challenges but based on 
performance over the financial period the 
board is cautiously optimistic that group 
revenues will remain stable over the 
coming year
balancing the group’s plans for 
growth against the uncertain 
economic outlook
during the financial period the board 
has monitored both the company’s 
performance and the macro economy 
closely and considered that a return  
to investing in key areas of growth for  
the business was appropriate 
 
 
 
this has resulted in an overall increase 
in the number of stores following a 
reduction in overall stores number in the 
financial period to september 2009  
the board anticipates that this growth will 
continue and are targeting an increase 
of approximately 10 new stores over 
the next 12 months this target remains 
significantly below the historic levels of 
openings reflecting the board’s cautious 
approach the board have also decided 
that investment in other key areas is now 
appropriate the biggest of which will be 
a new warehousing facility at the group’s 
existing site in leicester at a cost of 
approximately £3 million
appropriate capital structure
the group has in place loan facilities  
of £910 million repayable at a rate of  
£7 5 million per annum the facility 
terminates in january 2012 with a final 
repayment of £835 million the loan 
facility contains financial covenants which 
are tested on a biannual basis based on 
current trading and the board’s current 
expectations for the next 12 months the 
board expects that the group will be 
able to continue to operate within its 
current financial covenants the board 
has a policy of having at least 12 months 
of committed facilities available as a 
consequence the board has commenced 
early discussions with its existing lenders 
and is confident that new committed 
facilities will be in place over the  
coming months
other key risks
in addition to the above the board 
considers other key risks including its 
relationship with key suppliers the 
potential threat of new competitors  
 
 
 
 
the risk of failure of key information 
technology systems possible impacts  
on costs of sourcing due to weakness  
of sterling in comparison to the euro and 
us dollar currencies loss of key personnel 
and the development of substitute 
products the board’s response to these 
risks is articulated throughout this report 
and includes
•  continuing improvement in our 
existing retail operations including 
regular review of our product offer 
and customer service to ensure that 
we are maximising the opportunity 
to deliver sales
• careful management of costs across 
 all areas of the business with increases  
 in expenditure only in areas that the  
 board decides are appropriate in   
 order to either drive shortterm gains or  
 generate longer term strategic benefits
• tight management of cash and 
 continued reduction in net debt to   
 improve financial flexibility
•  continuing review of the group’s  
sourcing strategy to enable us to  
deliver greater value for money  
whilst maintaining returns and minimise 
the risk of over reliance on any 
individual supplier
the directors will continue to monitor all 
of the key risks and uncertainties and 
the board will take appropriate actions 
to mitigate these risks and their potential 
outcomes
  great  
service
at topps tiles we are proud of our reputation for 
providing excellent customer service this ethos has 
been present from the start and runs throughout 
the core of our business nothing is too much 
trouble for our knowledgeable well trained staff 
we help our customers every step of the way from 
inspirational ideas for their homes to selecting the 
right products to produce an excellent quality finish 
– we even organize the fitting
 plc 
annual report and financial statements 2010
12 587 
group gross margin
2009 592
h
we’re enhancing our kitchen ranges 
with a range of delicately patterned 
tiles perfect for creating the popular 
shabbychic look
 plc 
annual report and financial statements 2010
13
review of the business governance financial statements other information
going concern
based on a detailed review of the 
risks and uncertainties on page 1 1 
management’s latest revised forecasts 
a range of sensitised scenarios and the 
current banking facilities the board has 
a reasonable expectation that the group 
will continue to meet all of its financial 
commitments as they fall due and will  
be able to continue as a going concern  
the board therefore considers it 
appropriate to prepare the financial 
statements on the going concern basis
financial review
profit and loss account
please note this report has been prepared 
for the 53 weeks ended 2 october 
2010 and the comparative period has 
been prepared for the 52 weeks ended 
26 september 2009 with the exception 
of the group likeforlike revenue measure 
which is comparable the reported figures 
are presented on this basis and are not 
entirely comparable the impact of the 
additional week is to increase revenue  
by £36 million and operating profit by 
£04 million 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
gross margin
overall gross margin was 587 
compared with 592 in the previous 
financial period at the interim stage  
of this period gross margin was 588 
and we have recorded a gross margin  
of 587 in the second half of the period 
demonstrating an encouraging level of 
stability the environment we operate 
in continues to be a highly competitive 
one and we are able to utilise our scale 
to ensure that we can offer customers 
outstanding value and also generate 
increasing levels of returns previous 
financial periods have seen significant 
reductions in margins due to a weakening 
of sterling and subsequent increased cost 
of sourcing whilst this pressure remains 
we have seen a greater level of stability 
in sterling exchange rates and this has 
helped in our forward planning on both 
purchases and pricing we will continue 
to invest margin in a controlled way to 
drive transactions where we consider  
it appropriate to do so
operating expenses
total operating costs have increased 
from £845 million to £87 3 million an 
increase of 33 costs as a percentage 
of sales were 47 8 compared to 47 3 
last year when adjusting for exceptional 
items detailed at the end of this section 
operating costs were £861 million 2009 
£831 million equivalent to 47 2 of 
sales 2009 465 of sales
the movement in adjusted operating costs 
is explained by the following key items
• the additional week we have   
 accounted for in this financial period 
  equates to approximately £16 million 
  of additional costs
•  the average number of uk stores 
trading during the financial period  
was 310 2009 316 which would 
imply a 19 reduction in store costs  
generating approximately £13 million 
of savings
• we have made additional investments 
  in marketing increasing spend by 
  approximately £10 million
• business performance has generated 
  increased rewards for staff and our   
 employee profit share costs have risen 
  by £16 million this includes the 
  payment of a senior management   
 bonus equating to £075 million  
 2009 £nil
• the remaining elements of the cost base 
  are broadly flat when compared to the 
  prior year
during the period we have incurred 
several charges which we have 
categorised as exceptional due to  
their nature these charges primarily 
relate to impairments of plant property 
and equipment of £08 million  
2009 £10 million and other 
restructuring and oneoff costs of  
£04 million 2009 £05 million
operating profit 
operating profit for the period was  
£199 million 2009 £213 million
operating profit as a percentage of sales 
was 109 2009 1 19
when adjusted for the exceptional 
items detailed on page 1 and above 
operating profit was £211 million 
2009 £228 million 
business review continued
 as explained on page 1 £491 m
net debt 
2009 £712m
v
with 20 different colours our  
massive range of glass tiles  
is designed to complement  
any kitchen style
h
our prestige limestone offers 
affordable luxury and is available in  
a number of sizes including mosaic
 plc 
annual report and financial statements 2010
14
business review continued
other gains and losses
other gains and losses include the impact 
of property disposals during the period 
we purchased at auction the freehold 
on one of our trading stores at a cost 
of £09 million the property has now 
subsequently been sold for £10 million 
with a profit on disposal of £01 million 
financing 
the net cash interest charge for  
the year was £48 million 2009  
£53 million excluding the impact of  
revaluations of derivatives instruments 
whilst the interest charge has fallen 
compared to the prior year we have 
only seen limited benefit from the very 
low interest rates that prevail in the 
market this is due to a series of interest 
rate derivatives we have in place which 
negate the majority of any impact from 
interest rate movements
the interest rate derivatives give rise 
to a “marked to market” revaluation 
per the requirements of ias 39 
“financial instruments recognition and 
measurement” this revaluation has 
generated a fair value non cash charge 
of £28 million 2009 £58 million  
due to the nature of the underlying 
financial instruments ias 39 does not 
allow hedge accounting to be applied 
to these losses and hence this charge 
is being applied direct to the income 
statement rather than offset against 
balance sheet reserves
net interest cover was 51 times 2009 
50 times based on earnings before 
interest tax and depreciation excluding 
the impact of ias 39 in finance charges 
 
 
 
 
fund raising 
during the period the company 
completed a successful accelerated 
bookbuild placing on 24 november 
2009 raising gross proceeds of 
approximately £154 million the placing 
was undertaken to help provide the 
company with both additional financial 
flexibility in the event of a further 
downturn in consumer confidence and 
spending and also additional resources  
to support the company’s growth strategy 
as opportunities arise in the market 
 
profit before tax
reported profit before tax is £124 million 
2009 £99 million 
group profit before tax margin was 68 
2009 55
when adjusted for the exceptional and 
noncash items detailed on page 1  
the profit before tax is £163 million 
2009 £17 5 million
tax
the effective rate of corporation tax  
in respect of continuing operations  
was 315 2009 322 
taking into account discontinued 
operations the overall effective rate  
of corporation tax was 256  
2009 649
the underlying uk tax rate was 315 
2009 322
the effective rate of tax on discontinued 
operations has been reduced by the 
recognition in the current period of the 
benefit of losses incurred by the dutch 
trading subsidiary in prior periods
earnings per share
basic earnings per share were  
537 pence 2009 100p see note 13
diluted earnings per share were  
526 pence 2009 099p see note 13 
dividend and dividend policy 
the board has given careful consideration 
to the resumption of dividend payments 
trading has improved and we are 
encouraged that we have seen a good 
level of stability from which we feel we 
can plan and move forward we have 
also commenced early negotiations with 
our existing lenders to extend our current 
banking facilities and based on those 
discussions the board is now confident 
that new committed facilities will be in 
place over the coming months 
as a result of progress on these two key 
issues the board feels that the resumption 
of dividend payments at this time is 
appropriate the board is recommending 
to shareholders a final dividend of 
1p per share subject to approval by 
shareholders at the annual general 
meeting this will be payable on  
31 january 201 1 to all shareholders on 
the register as at 31 december 2010
 as explained on page 1 
for more information  
please visit 
wwwtoppstilescouk
 128
stock at period end as  
days turnover 
2009 121
u
split face mosaics are the latest trend in textured 
feature walls made from pieces of natural stone 
bonded together they produce a stunning tactile 
form
u
our new amsterdam range offers 
timeless classic tile design with a 
modern contemporary twist
 plc 
annual report and financial statements 2010
15
review of the business governance financial statements other information
balance sheet
capital expenditure
capital expenditure in the period 
amounted to £49 million 2009  
£21 million an increase of 133 
reflecting the very low level we were at  
in 2009 the acquisition of a freehold 
store and the commencement of some 
cautious steps towards expansion in 
the current financial period capital 
expenditure includes the cost of eight  
new openings five rebrands four 
relocations and a small number of refits  
at a cost of £30 million in addition to this 
we purchased the freehold on an existing 
store at a cost of £09 million and 
subsequently disposed of via a sale and 
leaseback arrangement other capital 
expenditure amounted to £10 million and 
reflects the ongoing renewal of the estate 
at the period end the group held  
six freehold or long leasehold sites 
including two warehouse and distribution 
facilities with a total net book value of 
£134 million 2009 £135 million
stock
stock at the period end was  
£249 million 2009 £27 4 million 
representing 121 days’ turnover  
2009 128 days’ turnover we have 
continued our focus on improving  
working capital efficiencies and as a 
result have realised savings across both 
stores and warehouse
capital structure and treasury 
cash and cash equivalents at the  
period end were £419 million 2009  
£27 3 million with repayable borrowings 
at £910 million 2009 £985 million 
 
this gives the group a net debt position of 
£491 million compared to £712 million 
as at 26 september 2009
cash flow 
cash generated by operations was 
£198 million compared to £334 million 
last period the additional week in the 
current financial period accounts for 
approximately £80 million of adverse 
working capital movement due to key  
payments to suppliers staff and landlords 
having been made an equivalent 
favourable impact was included in the 
2009 cash flow resulting in underlying 
cash generation being broadly stable 
annual general meeting
the annual general meeting for the 
period to 2 october 2010 will be held 
on 1 1 january 201 1 at 1030am at 
topps tiles plc thorpe way grove park 
enderby leicestershire le19 1su
matt williams  rob parker
chief executive officer finance director
29 november 2010 great  
people
our employees are central to everything we do at 
topps tiles and their wellbeing and engagement is 
a key focus for us we aim to engage reward and 
communicate with our people and are committed 
to providing equality of opportunity training  
and development
 plc 
annual report and financial statements 2010
16 “topps tiles have been the most wonderful supporters of 
  h4h since 2008 with all their 300 stores motivated to  
 do their bit for “the blokes” – the men and women of the 
  armed forces – and we’re delighted to be working with 
  them their staff have embraced the idea of “doing their 
  bit” and they have raised a great deal of money in  
 dozens of different and imaginative ways”
 bryn parry help for heroes founder
k
sponsored by us meet phoolan our unique 
lifesize baby elephant completely decorated 
in mosaics from our own range
 plc 
annual report and financial statements 2010
17
review of the business governance financial statements other information
operational review
corporate social responsibility “csr”  
is integral to all modern businesses  
and topps tiles is no exception
taking responsibility for our impact on 
society is important to us as a business 
and we have been developing our  
csr agenda since 2004 over the 
past six years we have evolved and 
enhanced our programme to ensure we 
are an active member of our community 
environmentally conscious and ensure  
our employees feel supported  
developed and engaged
we are proud of our achievements in this 
area and focus our attentions across three 
primary areas
• community and charity
• environment
• our people
the group is a constituent member 
of the ftse4 good index of socially 
responsible uk quoted companies 
the ftse4 good index is designed to 
measure the performance of companies 
that meet globally recognised corporate 
responsibility standards and to facilitate 
investment in those companies where  
csr issues are an influencing factor in  
the investors’ decision making process 
we aim to comply with the criteria 
set by the operators of this index and 
are actively engaged in the continued 
developments of our csr policies to 
ensure continuing compliance
community and charity
an important part of being a “good 
neighbour” for topps tiles is ensuring 
we are active in the communities local to 
our stores and places where we work 
we have a strong corporate social 
responsibility ethic at topps and this is 
reflected in the work we do within our 
community and charity programmes
in its sixth year our csr programme has 
grown and been enhanced over the years 
providing the framework and impetus for 
stores to support local activities that are  
a “perfect fit” for our company values 
and culture
topps in the community
mosaic art is fast becoming a growing 
craft across the uk and topps is proud 
to lead the way in promoting and 
supporting mosaic as both a public art 
and an educational craft skill for children 
and adults 
our mosaic programme is broken down 
into two key areas
• the first supports the educational 
  needs of adults and children in our 
 local community we provide topps 
  tiles community vouchers for mosaic 
  materials to community artists and 
 neighbourhood craft groups and 
 provide expertise and materials to 
 schools educational workshops and 
 further education centres the support 
 of these groups assists in individuals 
 and groups developing their self 
 esteem selfability educational 
 needs empowerment inclusion  
 and communication skills
• secondly we sponsor two major 
  competitions designed to showcase 
  the work of novice mosaic artists  
 mega mosaic makers is a primary
  school competition organised by the 
 british association for modern mosaic 
 and our own landmark competition 
 for adults learning mosaic in community 
 workshops and further education 
 centres the topps tiles award for 
 achievements in mosaics
the elephant parade 2010 was billed 
as london’s biggest public art event and 
topps tiles teamed up with artists and 
conservationists to flood london with  
275 lifesize baby elephants during  
may june and july 2010 focusing on 
the plight of endangered asian elephants 
who might cease to exist in the wild by 
2050 elephants were installed at key 
sites from buckingham palace through  
to the olympic stadium grounds  
topps tiles were the proud sponsors of 
one of these “babies” a female elephant 
named phoolan 
corporate social responsibility 300
the number of football teams  
we sponsor in the uk
 plc 
annual report and financial statements 2010
18
charity
during 2008 we adopted “help for 
heroes” as our group charity and have 
taken their cause to our hearts in a big 
way founded in 2007  the charity funds 
specialist rehabilitation projects for 
members of the armed forces wounded in 
front line conflicts including afghanistan 
undoubtedly one of britain’s most high
profile charities help for heroes enjoys 
very strong support from the british  
public as it does from the workforce  
at topps tiles 
the last year has seen a phenomenal 
fundraising drive by our employees with 
individuals arranging events in their 
local communities fun runs football 
tournaments through to a companywide 
skydive with the red devils in may 2010 
with over £120000 already raised 
for help for heroes topps are looking 
forward to continuing with the successful 
partnership in 201 1
youth football
topps is one of the biggest supporters 
of youth football in the uk and the free 
kit our stores donate to junior teams is 
arguably the most famous strip in the 
grassroots game whenever we open a 
new store we make a point of selecting 
a local team to support with kit and 
equipment this has proved a simple 
and effective way of reaching out to the 
community and it’s a huge morale booster 
for local teams and families to secure a 
‘big name’ sponsor like topps tiles
we currently support over 300 teams 
and are very proud of this association 
culminating in major annual tournaments 
when teams across the country come 
together at the walker’s stadium to  
take their place on the hallowed turf  
of leicester city fc
environment
there are three primary areas where 
our business potentially impacts the 
environment property waste and 
transport we regularly review our 
progress in these areas and endeavour to 
use the most environmentally responsible 
practices possible
property
energy is a major driver of cost for the 
business and also forms a significant 
part of our environmental impact energy 
efficient technology including low energy 
lighting helps to reduce the impact and 
we are continuing trials to reduce further 
our environmental impact by adopting 
new technology wherever possible
in liaison with the carbon trust topps 
commenced a pilot scheme for the 
replacement of old inefficient lighting 
installations with new efficient lighting 
systems at eleven of our sites this work 
was carried out over the summer months 
and will result in
• an improved environment for our 
  customers and staff 
• cost savings from lower electricity  
 consumption and maintenance costs  
 and
• a reduction in our carbon footprint 
we are monitoring these sites and hope 
to undertake similar lighting replacements 
at other stores across the country
waste
waste management is an important area 
for our business and we recycle as much 
as possible
with the ongoing need for us to actively 
manage our store waste in partnership 
with biffa our stores now use dry mixed 
recycling dmr meaning that cardboard 
paper newspapers plastic films and 
bottles and steel and aluminium cans 
can all be put into one bin as well as 
controlling our costs we are reducing 
our carbon footprint by diverting waste 
away from landfill and reducing the 
environmental impact of our waste
our offices recycle all used paper the 
majority of which is shredded and used 
as packaging we continue to move our 
reporting away from being paper based 
and issue increasing numbers of reports  
in electronic format 
transport
topps continues to invest in fuel efficient 
euro 5 low emissions fleet and have 
manufacturers telematic systems fitted 
as standard on these vehicles this all 
allows monitoring of driving techniques 
and is followed by safe and efficient 
driving courses new fleet is also fitted 
with engine idle shut down systems and 
two pedal semiautomatic gearboxes to 
ensure the vehicle is as fuel efficient as 
possible deliveries to stores continue 
to be consolidated on to own fleet with 
an active programme in place around 
lowering stem mileage and reducing 
emissions through more compact journeys 
the trailer fleet continues to be as light 
as possible and the latest generation is 
fitted with a rear steer axle allowing less 
tyre wear and putting less strain on public 
roads and areas ongoing daily route 
planning initiatives look for the optimum 
solution to get our product to stores
corporate social responsibility continued h
our 2010 winner of the ‘topps tiles 
award for achievement in mosaic’ art

for more information  
please visit 
wwwtoppstilescouk
1641
number of people employed  
by the group
2009 1611
 plc 
annual report and financial statements 2010
19
review of the business governance financial statements other information
supply chain
we source our goods for resale including 
tiles natural stone wooden flooring 
and adhesives from around the world 
labour standards factory conditions and 
human rights are issues we take seriously 
to address any possible concerns our 
buyers conduct regular supplier visits 
and factory tours and also insert a clause 
into all contracts with suppliers which 
stipulate our requirements we have also 
developed a policy on timber products 
and have adopted the principles and 
criteria of the forest stewardship council 
as our benchmark
our people
the wellbeing of our 1600 plus 
employees the quality of their working 
environment and their engagement with 
us as a business remains a key focus for 
topps tiles we aim to reward individuals 
fairly and are committed to providing 
equality of opportunity training and 
development as well as a safe workplace 
employee wellbeing
• we provide an employee helpline 
 service for all employees to have a 
 channel for expressing concerns and 
 seeking advice in the coming year  
 we plan to launch a new employee 
 assistance helpline and store manager  
 health plan
• our inhouse health and safety team  
 maintain regular dialogue with staff 
 and carry out periodic inspections 
 and assessments to ensure risks are 
 minimised or removed in our stores  
 warehouse and offices 
• to promote effective communication 
 and employee involvement we also 
 operate a health  safety committee 
 which meets on a regular basis and is  
 chaired by a main board director
communication and engagement
communication with our employees is 
vital and we have initiatives in place to 
ensure regular and effective dialogue with 
staff we have introduced a three year 
communication and engagement plan to 
support the business plan for the future
• we have a number of existing 
 communication channels including 
  an in house magazine and a weekly 
  storesbulletin we also have an  
 intranet which we expect to play 
  an increasingly important part in 
 our communication plans as we move 
  forward as part of our communication 
  commitment we have seen the first 
  annual management road show in 
  october that took over 400 of our 
  senior managers through our heritage 
  and plans for the future and followed 
  up with an all employee communication 
  to ensure all employees understand and 
  are part of our plans 
• in the coming year we will launch   
 an employee representative forum 
  “team talk” and conduct an 
  employee engagement survey  
 these initiatives will help to create a 
 framework for employees to participate 
  in a two way engagement process 
 with those that will drive decision 
 making within the company
• we are developing our internal 
  employee brand in a drive to attract 
 and retain the talent needed to support  
 our growth plans we actively 
  encourage our staff to apply for internal 
  vacancies and promotions
• rewarding our employees for all  
 their hard work is part of the topps  
 ethos and every employee has the  
 opportunity to enhance their basic pay  
 through additional performance related  
 incentives this year has also seen us  
 review and enhance our complete  
 reward programme to ensure we  
 are competitive and recognise all  
 our employees for their hard work  
 and loyalty
in april 2008 the group retained its 
investors in people award for a further  
three years 
our full policy can be found on our 
website at wwwtoppstilescouk in 
the investor section under corporate 
responsibility barry bester 
nonexecutive chairman aged 53
barry was a founder shareholder 
and director of topps tiles in 1984
his principal responsibilities are 
group strategy
rt hon michael jack  
privy councillor 
senior nonexecutive director aged 64
chairman of audit committee
chairman of nomination committee
member of remuneration committee
in business michael’s management 
experience came from pg marks  
spencer’s and a part of northern foods 
his career as an mp concluded in 2010 
after 23 years during which he served as 
a minister in four departments including 
the treasury as financial secretary
additionally he chaired the efra select 
committee now he chairs the recently 
formed office of tax simplification  
he joined topps tiles board in 1999
alan white 
nonexecutive director aged 55
member of audit committee
member of nomination committee
chairman of the remuneration committee
alan is the chief executive of n brown 
group plc a role he was appointed to  
in 2002 he qualified as a chartered 
accountant with arthur andersen and  
has been group finance director for 
sharp electronics uk n brown group 
plc and littlewoods plc he joined the 
board of topps tiles in april 2008
nonexecutive directors
matthew williams 
chief executive officer aged 36
matt joined the company in 1998 after 
completing his chartered surveyors 
exams and took up the role of property 
director in 2004 he was promoted to 
chief operating officer and on 1 april 
2006 joined the plc board in 2007 he 
was promoted to chief executive officer
nicholas ounstead 
marketing director aged 50
health  safety committee chairman
nicholas joined topps tiles in april 1997  
prior to this he was marketing director at 
bellegrove ceramics plc which is a major 
supplier to diy chains and independent 
retailers in september 2001 he was 
appointed chief operating officer  
and promoted to chief executive officer 
from 2002 to 2007  
nicholas is also chairman of the health 
and safety committee
robert parker 
finance director aged 38
company secretary
secretary of audit committee
rob joined topps tiles in 2007 as 
finance director rob’s previous role 
before joining the group was director of 
finance  it for savers health  beauty 
ltd prior to that rob was with the boots 
group plc for 10 years including five 
years with the international side of the 
business ultimately as director of finance 
for boots retail international
he is responsible for the accounting 
financial control treasury administration 
and group secretarial matters
executive directors
 plc 
annual report and financial statements 2010
20
directors other information financial statements review of the business governance
	 plc	
annual report and financial statements 2010
21
directors	and	advisors
president
skm williams fca
directors
bfj bester 
nonexecutive chairman
mtm williams 
chief executive officer
nd ounstead 
marketing director
r parker acma
finance director
a white fca
nonexecutive director
the rt hon jm jack privy counsellor 
nonexecutive director
secretary
r parker acma
registered	number
3213782
registered	office
thorpe way 
grove park 
enderby 
leicestershire le19 1su
solicitors
tlt	solicitors
1 redcliff street 
bristol bs99 7jz
sinclair	abson	smith	lawyers
19 market place 
stockport sk1 1ha
beachcroft	llp
3 hardman street 
manchester m3 3hf
auditors
deloitte	llp
manchester
bankers
hsbc	bank	plc
56 queen street 
cardiff cf10 2px
brokers
kbc	peel	hunt	ltd
1 1 1 old broad street 
london ec2n 1ph
registrars
capita	registrars
northern house 
woodsome park 
fenay bridge 
huddersfield 
west yorkshire 
hd8 0ga 	 plc	
annual report and financial statements 2010
22
the directors present their annual report on the affairs of the group together with the financial statements and auditors’ report for 
the 53 week period ended 2 october 2010 the corporate governance statement set out on pages 25 to 26 forms part of  
this report
principal	activity
the principal activity of the group comprises the retail and wholesale distribution of ceramic tiles wood flooring and  
related products
business	review
the company being the listed entity topps tiles plc is required by the companies act to set out in this report a fair review of 
the business of the group during the financial period ended 2 october 2010 and of the position of the group at the end of that 
financial period the company is also required to set out a description of the principal risks and uncertainties facing the group
the information that fulfils the requirements of the enhanced business review can be found within the chairman’s statement on  
page 3 the ceo’s statement on page 5 the business review on pages 9 to 15 and the corporate and social responsibility 
statement on pages 17 to 19 which are incorporated in this report by reference
the directors monitor a number of financial and nonfinancial key performance indicators kpis for the group and by store and 
these are detailed on page 10
results	and	dividends
the audited financial statements for the 53 week period ended 2 october 2010 are set out on pages 31 to 67  the group’s profit 
for the period from continuing operations after taxation was £8472000 2009 £6699000
no interim dividend was paid in the period 2009 no interim dividend was paid
following careful consideration and for the reasons given in the chairman’s statement of this report the board is recommending  
the payment of a final dividend of 1p per share totalling £1882023 2009 no final dividend 
directors
the directors of the company who served throughout the year and thereafter were as follows
bfj bester nonexecutive chairman  
mtm williams chief executive officer 
r parker  finance director 
nd ounstead marketing director 
jm jack  senior independent nonexecutive director  
a white  nonexecutive director 
in line with the updated combined code on corporate governance all directors will be subject to annual reelection from the next 
annual general meeting
the company provides insurance against directors and officers liabilities to a maximum value of £5000000
the directors’ interests in the shares of the company are set out on page 29
details of directors’ share options are provided in the directors’ remuneration report on page 29 
share	capital
details of the company’s authorised and issued share capital together with details of the movements in the company’s issued 
share capital during the period are shown in note 23 to the financial statements
the company has one class of ordinary shares in issue which carry no right to fixed income each share carries the right to  
one vote at general meetings of the company
there are no specific restrictions on the size of a holding nor on the transfer of shares which are both governed by the general 
provisions of the articles of associated and prevailing legislation the directors are not aware of any agreements between  
holders of the company’s shares that may result in restrictions on the transfer of securities or on voting rights
no person has any special rights of control over the company’s share capital and all issued shares are fully paid
change	of	control	–	significant	agreements
the group is party to significant agreements including commercial contracts financial and property agreements and employees 
share plans which contain certain termination and other rights for the counterparties upon a change of control of the company 
should the counterparties choose to exercise their rights under the agreements on a change of control such arrangements would 
need to be renegotiated none of these are considered to be significant in terms of this likely impact on the business of the group 
as a whole there are no agreements between any group company and any of its employees or any director of the company 
which provides for compensation to be paid to the employee or director for termination of employment or for loss of office as a 
consequence of a takeover of the company other than provisions that would apply on any termination of employment
 
 
 
 
directors’	report
 as explained on page 1 other information financial statements review of the business governance
	 plc	
annual report and financial statements 2010
23
supplier	payment	policy
the group’s policy is to negotiate terms of payment with suppliers when agreeing the terms of each transaction ensuring that 
suppliers are made aware of the terms of payment and that both parties abide by those terms
the effect of the group’s negotiated payment policy is that trade payables at the period end represented 41 days purchases 
2009 46 days trade creditor days is calculated by dividing the trade and other payables creditor by the aggregate of cost  
of sales and relevant nonstock expenditure multiplied by 365
charitable	and	political	contributions
during the period the group made charitable donations of £10000 2009 £nil to help for heroes the group made no political 
contributions 2009 £nil
substantial	shareholdings
in addition to the directors’ shareholdings noted on page 29 on 4 november 2010 the company had been notified in 
accordance with chapter 5 of the disclosure and transparency rules of the following interests in 3 or more of its issued share 
capital
number  held
williams skm esq 19903950 106
aberforth 18617247 99
axa framlington investment management 15299831 81
scottish widows investment partnership 11894594 63
blackrock 9351078 50
allianz global investors 8950000 48
ubs global asset management 5732369 30
disabled	employees
applications for employment by disabled persons are always fully considered bearing in mind the aptitudes of the applicant 
concerned in the event of members of staff becoming disabled every effort is made to ensure that their employment with the 
group continues and that appropriate training is arranged it is the policy of the group that the training career development  
and promotion of disabled persons should as far as possible be identical with that of other employees
employee	consultation
the group places considerable value on the involvement of its employees and has continued to keep them informed on matters 
affecting them as employees and on the various factors affecting the performance of the group this is achieved through formal 
and informal meetings and the company magazine employee representatives are consulted regularly on a wide range of matters 
affecting their current and future interests
financial	risk	management	objectives	and	policies
the group is exposed to certain financial risks namely interest rate risk currency risk and credit risk information regarding such 
financial risks is detailed in notes 17  18 19 20 and 21 the group’s risk management policies and procedures are also discussed 
in the business review on pages 9 to 15
share	option	schemes
the directors’ recognise the importance of motivating employees and believe that one of the most effective incentives is increased 
employee participation in the company through share ownership
this has been achieved through the introduction of a number of employee sharesave share bonus approved and unapproved 
share option schemes since the flotation in 1997 
the total number of options held by employees including directors is 5571746 2009 6107 702 
as described in note 31 employee share purchase plans are open to almost all employees and provide for a purchase price equal 
to the daily average market price on the date of grant less 20 the shares can be purchased during a two week period during 
the period ended 2 october 2010 the board decided not to implement an employee sharesave scheme due to the high level of 
participation arising in the period ended 26 september 2009 when the average price was 218p
details of directors’ share options are provided in the directors’ remuneration report on page 29
information	given	to	auditors
each of the directors at the date of approval of this annual report confirms that
• so far as the director is aware there is no relevant audit information of which the company’s auditors are unaware and
•  the director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit 
information and to establish that the company’s auditors are aware of that information
this confirmation is given and should be interpreted in accordance with the provisions of section 418 of the companies act 2006 	 plc	
annual report and financial statements 2010
24
auditors
a resolution to re appoint deloitte llp as the company’s auditor will be proposed at the forthcoming annual general meeting
directors’	responsibilities	
the directors are responsible for preparing the annual report directors’ remuneration report and the financial statements 
in accordance with applicable law and regulations
company law requires the directors to prepare financial statements for each financial period under that law the directors are 
required to prepare the group financial statements in accordance with international financial reporting standards as adopted  
by the european union “ifrss” and article 4 of the ias regulation 
in preparing the group financial statements international accounting standard 1 requires that the directors
• properly select and apply accounting policies
•  present information including accounting policies in a manner that provides relevant reliable comparable and understandable 
information 
•  provide additional disclosures when compliance with the specific requirements in ifrss are insufficient to enable users to 
understand the impact of particular transactions other events and conditions on the entity’s financial position and financial 
performance and
• make an assessment of the company’s ability to continue as a going concern
the directors have elected to prepare the parent company financial statements in accordance with united kingdom generally 
accepted accounting practice united kingdom accounting standards and applicable law under company law the directors  
must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the company  
and of the profit or loss of the company for that period in preparing the parent company financial statements the directors  
are required to
• select suitable accounting policies and then apply them consistently
• make judgements and estimates that are reasonable and prudent 
•  state whether applicable uk accounting standards have been followed subject to any material departures disclosed and 
explained in the financial statements and
•  prepare the financial statements on the going concern basis unless it is inappropriate to presume the company will continue 
in business
the directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s 
transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure 
that the financial statements comply with the companies act 2006 they are also responsible for safeguarding the assets of the 
company and for taking reasonable steps for the prevention and detection of fraud and other irregularities
the directors are responsible for the maintenance and integrity of the corporate and financial information included on the 
company’s website legislation in the united kingdom governing the preparation and dissemination of financial statements  
may differ from legislation in other jurisdictions
directors’	responsibility	statement
we confirm to the best of our knowledge
1  the financial statements prepared in accordance with the relevant financial reporting framework give a true and fair view of the 
assets liabilities financial position and profit or loss of the company and the undertakings included in the consolidation taken as 
a whole and
2  the management report which is incorporated into the directors’ report includes a fair review of the development and 
performance of the business and the position of the company and the undertakings included in the consolidation taken  
as a whole together with a description of the principal risks and uncertainties they face
after making enquiries the directors have formed a judgement at the time of approving the financial statements that there is  
a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future  
for this reason the directors continue to adopt the going concern basis in preparing the financial statements
on behalf of the board
r	parker
director and company secretary
29 november 2010
directors’	report	continued other information financial statements review of the business governance
	 plc	
annual report and financial statements 2010
25
the company is committed to the principles of corporate governance contained in the combined code of corporate governance 
that was issued in june 2010 by the financial reporting council “the code” for which the board is accountable to shareholders 
statement	of	compliance	with	the	code	of	best	practice
the company has complied throughout the period with the provisions of the code of best practice set out in section 1 of the code 
except for provision b61 as the board does not currently undertake formal appraisal of its own performance and that of its 
committees on the basis that it considers an informal rolling programme of review appropriate the company complies with all 
other provisions of the code
the board of directors comprises six members of whom two are independent nonexecutive directors and three are executive 
directors led by the company’s nonexecutive chairman mr barry bester the senior independent nonexecutive director is 
the rt hon michael jack who also chairs the audit committee and nomination committee brief biographical details of all 
directors are given on page 20 the board meets at least ten times a year certain defined issues are reserved for the board 
including approval of financial statements and circulars annual budgets strategy directors’ appointments internal control and risk 
management corporate governance key external and internal appointments and pensions and employee incentives
in advance of board meetings directors are supplied with uptodate information about trading performance the group’s overall 
financial position and its achievement against prior year budgets and forecasts 
where required a director may seek independent professional advice at the expense of the company all directors have access 
to the company secretary and they may also address specific issues to the senior independent nonexecutive director 
in accordance with the articles of association all directors are subject to reelection at least every third year in line with the code 
all nonexecutive directors who have served for nine years or more will be subject to annual reelection as such the rt hon 
michael jack will be subject to reelection in addition in line with the updated code the board has resolved that all directors will 
be subject to annual reelection from the next annual general meeting directors are elected at the first agm after appointment 
all nonexecutive directors have written letters of appointment the board acknowledges the code’s position with respect to the 
potential loss of independence for any nonexecutive director who has served for nine years or more although the rt hon 
michael jack has exceeded this term the board regards him to be independent and considers his broad based commercial 
experience and extensive business specific knowledge to be extremely beneficial
the board considers that the rt hon michael jack and alan white are independent for the purposes of the code the terms and 
conditions for the appointment of nonexecutive directors are available for inspection on request
the board will review the independence of nonexecutive directors on an ongoing basis
the board operates three committees these are the nomination committee the remuneration committee and the audit 
committee all of these committees meet regularly and have formal written terms of reference which are available for inspection  
on request
attendance	at	boardcommittee	meetings
the following table shows the number of board and committee meetings held during the 53 week period ended 2 october 2010 
and the attendance record of the individual directors
board of 
directors
audit 
committee
remuneration 
committee
nomination 
committee
number of meetings 11 2 4 2
bfj bester 11 2 4 2
mtm williams 11 2 na na
nd ounstead 11 2 na na
r parker 11 2 na na
jm jack 10 2 4 2
a white 10 2 4 2
corporate	governance	statement 	 plc	
annual report and financial statements 2010
26
corporate	governance	statement	continued
statement	about	applying	the	principles	of	good	governance
the company has applied the principles of good governance set out in section 1 of the combined code by complying with the 
code of best practice as reported above further explanation of how the principles have been applied in connection with directors’ 
remuneration is set out in the remuneration report
audit	committee
the audit committee consists of nonexecutive directors the chairman is the rt hon michael jack the other member is  
alan white who has served on the committee since his appointment on 1 april 2008
the audit committee considers the nature and scope of the audit process both internal and external and its effectiveness 
the committee reviews and approves the internal audit programme meets with the external auditors and considers the annual 
and interim financial statements before submission to the board the committee reviews the arrangements by which staff may 
in confidence raise concerns about possible improprieties in matters of financial reporting or other matters the committee also 
reviews the group’s system of internal control and reports its findings twice a year to the board the committee meets with the 
external auditors the rest of the board attend at the invitation of the audit committee chairman
as stated above part of the role of the audit committee is to review the independence of the company’s auditors the company’s 
external auditors deloitte llp “deloitte” have provided nonaudit services to the company in the form of tax advice the audit 
committee is aware that providing audit and nonaudit advice could give rise to a potential conflict of interest the audit committee 
has concluded that the auditors deloitte are independent
deloitte has been auditor for the group since september 2003 the current audit partner’s first period as signing partner was the 
period ended september 2006 and the audit partner rotation plan has been discussed with the committee the audit committee 
considers the work of deloitte and their independence in deciding whether an audit tender is required and at this current point in 
time is satisfied by the work of deloitte and their independence and so has proposed their reappointment
nomination	committee
the nomination committee is chaired by the rt hon michael jack the other member is alan white barry bester joins at 
the invitation of the nomination committee chairman the formal terms of reference for this committee require it to make 
recommendations to the board for appointments of directors and other senior executive staff 
appointments to the board are made on merit against objective criteria taking into account the skills and experience required 
where appropriate external search consultants are enlisted
dialogue	with	institutional	shareholders
the directors seek to build on a mutual understanding of objectives between the company and its institutional shareholders by 
making annual presentations and communicating regularly throughout the year the company also posts financial information on 
its website wwwtoppstilescouk
maintenance	of	a	sound	system	of	internal	control
the board has applied principle c2 of the combined code by establishing a continuous process for identifying evaluating and 
managing the significant risks the group faces the board regularly reviews the process which has been put in place from the 
start of the period to the date of the approval of this report and which is in accordance with the revised guidance on internal 
control published in october 2005 the turnbull guidance the board is responsible for the group’s system of internal control 
and for reviewing its effectiveness such a system is designed to manage rather than eliminate the risk of failure to achieve business 
objectives and can only provide reasonable and not absolute assurance against material misstatement or loss
in compliance with provision c21 of the combined code the board continuously reviews the effectiveness of the group’s system 
of internal control the board’s monitoring covers all controls including financial operational and compliance controls and risk 
management it is based principally on reviewing reports from management to consider whether significant risks are identified 
evaluated managed and controlled and whether any significant weaknesses are promptly remedied and indicate a need for more 
extensive monitoring the board has also performed a specific assessment for the purposes of this annual report this assessment 
considers all significant aspects of internal control arising during the period covered by the report including the work of internal 
audit the audit committee assists the board in discharging its review responsibilities
during the course of its review of the system of internal control the board has not identified nor been advised of any failings 
or weaknesses which it has determined to be significant therefore a confirmation in respect of necessary actions has not been 
considered appropriate  other information financial statements review of the business governance
	 plc	
annual report and financial statements 2010
27
remuneration	report
introduction
this report has been prepared in accordance with schedule 8 of the accounting regulations under the companies act 2006  
the report also meets the relevant requirements of the listing rules of the financial services authority and describes how the board 
has applied the principles relating to the directors’ remuneration in the combined code as required by the act a resolution to 
approve the report will be proposed at the annual general meeting of the company at which the financial statements will  
be approved
the act requires the auditors to report to the company’s members on certain parts of the directors’ remuneration report and 
to state whether in their opinion those parts of the report have been properly prepared in accordance with the accounting 
regulations the report has therefore been divided into separate sections for the audited and unaudited information
unaudited	information
remuneration	committee
the company has established a remuneration committee “the committee” which is constituted in accordance with the 
recommendations of the combined code the members of the committee are the rt hon michael jack and alan white  
who are both independent nonexecutive directors barry bester joins by invitation from the remuneration committee chairman  
the committee is chaired by alan white and has met four times during the financial period to discuss the remuneration of the 
senior management team and the implementation of the deferred bonus longterm incentive plan none of the committee has any 
personal financial interest other than as shareholders conflicts of interest arising from crossdirectorships or daytoday involvement 
in running the business the committee makes recommendations to the board on the individual remuneration packages of each 
executive director no director plays a part in any discussion about his own remuneration
remuneration	policy
executive remuneration packages are prudently designed to attract motivate and retain directors of the high calibre needed 
to maintain the group’s position as a market leader and to reward them for enhancing value to shareholders the performance 
measurement of the executive directors and key members of senior management and the determination of their annual 
remuneration package are undertaken by the committee the remuneration of the nonexecutive directors is determined by the 
board within limits set out in the articles of association
there are four main elements of the remuneration package for executive directors
• basic annual salary and benefits
• annual cash based bonus payments 
• deferred sharebased longterm incentives and
• pension arrangements
basic	salary
an executive director’s basic salary is reviewed and determined by the committee prior to the beginning of each financial period 
and when an individual changes position or responsibility in deciding appropriate levels the committee considers the group as 
a whole including levels of increases appropriate to other employees in the group and relies on objective research which gives 
uptodate information on a comparator group of companies basic salaries were reviewed in june 2010 and were increased by 
2 effective from that date in consideration of general inflation executive directors’ contracts of service which include details 
of remuneration will be available for inspection at the annual general meeting executive directors’ pay and the employment 
conditions of the group are taken into account when determining the directors’ remuneration for the financial period in addition to 
basic salary the executive directors receive certain benefitsinkind principally a car and private medical insurance
annual	bonus	payments
a discretionary annual cash bonus scheme represents the shortterm incentive element of the overall remuneration package for  
mr williams mr parker and mr ounstead the committee establishes the objectives that must be met in the financial period if a 
cash bonus is to be paid the maximum bonus achievable in the period was 125 of basic salary based on group performance 
against budgeted ebitda for the period ending 2 october 2010 it was determined by the remuneration committee that a bonus 
be paid equivalent to 50 of basic salary for mr williams mr parker and mr ounstead a proportion of the annual bonus will 
be deferred under the deferred bonus longterm incentive plan 
deferred	bonus	longterm	incentive	plan
at the agm in january 2010 a new deferred bonus longterm incentive plan was approved by shareholders under this longterm 
incentive plan 25 of the annual bonus net of tax is deferred in the form of shares for a twoyear period with a matching share 
award on a gross basis that vests at the end of two years subject to the achievement of performance conditions relating  
to continuing employment within the business and ebitda earnings growth measured over the twoyear period 
details of this award can be found on pages 29 and 62
the bonus structure will remain the same for the coming financial period
pension	arrangements
mr bester mr ounstead and mr parker received contributions into their own personal pension schemes as disclosed in the table 
on page 29
directors’	contracts	
executive directors 
it is the company’s policy that executive directors are offered permanent contracts of employment during the financial period the 
period of notice has been extended from a maximum of six months to a range of six to twelve months under an event of contract 
termination any severance payment would be subject to negotiation but would be with regard to length of service and  
the prevailing notice period
  total shareholder return charting 
oct05 oct06 oct07 oct08 oct09
topps tiles plc ftse 250
–60
–40
–100
0
20
–20
60
80
100
40
–80
oct10
	 plc	
annual report and financial statements 2010
28
remuneration	report	continued
nonexecutive directors 
nonexecutive directors have specific terms of engagement and their remuneration is determined by the board within the limits  
set by the articles of association and based on independent surveys of fees paid to nonexecutive directors of similar companies 
the basic fee paid to each nonexecutive director in the period was £34000 2009 £34000 the senior independent  
nonexecutive director received an additional fee of £2836 during the period 2009 £1905 it is the company’s policy  
that nonexecutive directors should have contracts with an indefinite term providing for a maximum of six months’ notice  
nonexecutive directors cannot participate in any of the company’s share option schemes and are not eligible to join the 
company’s pension scheme the role of chairman is also nonexecutive with an indefinite term contract and a maximum six 
months notice total remuneration for the period was £1 15000 2009 £1 14000 including a contribution to the company pension 
scheme of £6000 2009 £6000 the chairman also participates in the 2009 save as you earn scheme 
the details of the nonexecutive directors’ contracts are summarised in the table below
name of director
date of contract or 
letter of appointment
unexpired  
term
notice
period
bfj bester 27 may 1997 na 6 months
jm jack 26 january 1999 na 6 months
a white 1 april 2008 na 6 months
performance	graph
the following graph shows the company’s performance measured by total shareholder return “tsr” compared with the 
performance of the ftse 250 index also measured by tsr the index chosen for the comparison demonstrates the group’s tsr  
in comparison to the average for ftse 250 companies
the ftse 250 index is considered a relevant comparator as the business has formed a part of this index for the majority of the time 
period presented 
audited	information
aggregate	directors’	remuneration
the total amounts for directors’ remuneration were as follows
2010		
£’000	
2009  
£’000
emoluments 1298 934
money purchase pension contributions 26 24
sharebased payments 92 2
1416 960 other information financial statements review of the business governance
	 plc	
annual report and financial statements 2010
29
directors’	emoluments
name of director
fees	
£’000
basic	
salary	
£’000
vehicle	
allowance	
£’000
benefits		
in	kind	
£’000
money	
purchase	
pension	
contributions	
£’000
share
based	
payments	
£’000
bonus	
£’000
2010	
£’000
2009 
£’000
mtm williams – 358 24 1 – 44 132 559 375
nd ounstead – 187 19 28 23 69 308 164
r parker – 205 19 1 12 25 101 363 227
nonexecutive	directors
bfj bester – 107 – 2 6–– 115 114
vh watson  
resigned 13 january 2009 – ––– –––– 10
jm jack – 37 –– ––– 37 36
a white 34 ––– ––– 34 34
34 	894 62	 6	 26	 92	 302		1416 960
	
directors’	share	options
share options held by the directors relate to 2009 save as you earn scheme which was eligible to all employees no options 
have been exercised in the period
name of 
director scheme
26 sept
2009 acquired
2 oct
2010
exercise
price
date from
which exercisable
expiry
date
b bester save as you earn april 2009 26836 – 26836 £0165 1 apr 2012 1 oct 2012
n ounstead
r parker
m williams
save as you earn april 2009
save as you earn april 2009
save as you earn april 2009
26836
44727
26836
–
–
–
26836
44727
26836
£0165
£0165
£0165
1 apr 2012
1 apr 2014
1 apr 2012
1 oct 2012
1 oct 2014
1 oct 2012
the market price of the ordinary shares at 1 october 2010 was 600p and the range during the year was 4625p to 960p
sharebased	payments	and	deferred	entitlements
under the terms of the deferred bonus long term incentive plan and based on the remuneration committee’s assessment of 
performance of the business during the financial period the executive directors will be awarded a sharebased payment together 
with a matching award of shares at the end of a twoyear period subject to the achievement of performance conditions relating to 
ebitda earnings growth and continuing employment within the group the charge detailed under sharebased payments in the 
directors’ emoluments relates to the initial award the matching award will be charged to the income statement over the next two 
years subject to successful achievement of the performance criteria detailed
the sharebased payment net of tax will be awarded in shares at the average price over the financial period of 690p
directors’	interests
the directors had the following interest in the shares of the company all interests relate solely to ordinary shares
2010
	number	of		
ordinary	shares	of	
	333p	each
2009
number of  
ordinary shares of  
333p each
bfj bester 22929954 22076200
mtm williams 600000 439205
nd ounstead 477750 537750
r parker 72500 30000
jm jack 44250 40250
a white 41499 15000
mr bester held 122 of shares in the company at 2 october 2010 2009 129
approval
this report was approved by the board of directors on 29 november 2010 and signed on its behalf by
alan	white
chairman of remuneration committee 	 plc	
annual report and financial statements 2010
30
we have audited the group financial statements of topps tiles plc for the 53 week period ended 2 october 2010 which comprise 
the consolidated statement of financial performance the consolidated statement of comprehensive income the consolidated 
statement of financial position the consolidated statement of changes in equity the consolidated cash flow statement and the 
related notes 1 to 33 the financial reporting framework that has been applied in their preparation is applicable law and 
international financial reporting standards ifrss as adopted by the european union
this report is made solely to the company’s members as a body in accordance with chapter 3 of part 16 of the companies act 
2006 our audit work has been undertaken so that we might state to the company’s members those matters we are required to 
state to them in an auditors’ report and for no other purpose to the fullest extent permitted by law we do not accept or assume 
responsibility to anyone other than the company and the company’s members as a body for our audit work for this report or for 
the opinions we have formed
respective	responsibilities	of	directors	and	auditors
as explained more fully in the directors’ responsibilities statement the directors are responsible for the preparation of the group 
financial statements and for being satisfied that they give a true and fair view our responsibility is to audit the group financial 
statements in accordance with applicable law and international standards on auditing uk and ireland those standards require 
us to comply with the auditing practices board’s apb’s ethical standards for auditors
scope	of	the	audit	of	the	financial	statements
an audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material misstatement whether caused by fraud or error this includes 
an assessment of whether the accounting policies are appropriate to the group’s circumstances and have been consistently 
applied and adequately disclosed the reasonableness of significant accounting estimates made by the directors and the overall 
presentation of the financial statements
opinion	on	financial	statements
in our opinion the group financial statements
•  give a true and fair view of the state of the group’s affairs as at 2 october 2010 and of its profit for the 53 week period then 
ended
• have been properly prepared in accordance with ifrss as adopted by the european union and
•  have been prepared in accordance with the requirements of the companies act 2006 and article 4 of the ias regulation
separate	opinion	in	relation	to	ifrss	as	issued	by	the	iasb
as explained in note 2 to the group financial statements the group in addition to complying with its legal obligation to apply ifrss 
as adopted by the european union has also applied ifrss as issued by the international accounting standards board iasb
in our opinion the group financial statements comply with ifrss as issued by the iasb
opinion	on	other	matter	prescribed	by	the	companies	act	2006
in our opinion the information given in the directors’ report for the financial year for which the financial statements are prepared is 
consistent with the group financial statements
matters	on	which	we	are	required	to	report	by	exception
we have nothing to report in respect of the following
under the companies act 2006 we are required to report to you if in our opinion
• certain disclosures of directors’ remuneration specified by law are not made or
• we have not received all the information and explanations we require for our audit
under the listing rules we are required to review
• the directors’ statement contained within the business review in relation to going concern and
•  the part of the corporate governance statement relating to the company’s compliance with the nine provisions of the june 2008 
combined code specified for our review
other	matter
we have reported separately on the parent company financial statements of topps tiles plc for the period ended 2 october 2010 
and on the information in the directors’ remuneration report that is described as having been audited
sharon	fraser	senior	statutory	auditor	
for	and	on	behalf	of	deloitte	llp
chartered accountants and statutory auditors  
manchester united kingdom
29 november 2010
independent	auditors’	report 	 plc	
annual report and financial statements 2010
31
other information review of the business governance financial	 statements
consolidated	 statement	 of	 financial	 performance
for the 53 weeks ended 2 october 2010
notes 
53	 weeks	
ended	
2	october
2010
£’000
restated
52 weeks ended
 26 september
2009
£’000
group	 revenue	–	continuing 	 operations 3  4 182406 178796
cost of sales 75254 72929
gross profit 107152 105867
employee profit sharing 6902 5258
distribution costs 64492 65405
other operating expenses 5452 4827
administrative costs 7044 6688
sales and marketing costs 3385 2348
group	 operating	 profit	 before	 exceptional	 items 21093 22837
impairment of plant property and equipment 5 815 1027
restructuring and other oneoff costs 5 401 469
group	 operating	 profit 4 19877 21341
other gains and losses 8 100 349
investment revenue 9 453 329
finance costs 9 5275 5607
fair value loss on interest rate derivatives 9 2780 5833
profit	 before	 taxation 6 12375 9881
taxation 10 3903 3182
profit	 for	 the	 period	 from	 continuing	 operations 8472 6699
discontinued	 operations
profitloss for the period from discontinued operations 11 1502 4977
profit	 for	 the	 period	 attributable	 to	 equity	 holders	 of	 the	 company 29 9974 1722
earnings	 per	 ordinary	 share	 restated 13
from	 continuing	 operations
– basic 456p 390p
– diluted 446p 386p
from	 continuing	 and	 discontinued	 operations
– basic 537p 100p
– diluted 526p 099p
notes 
53	 weeks	
ended	
2	october
2010
£’000	
52 weeks ended
 26 september
2009
£’000
exchange differences on retranslation of foreign operation 28 – 88
profit for the period 9974 1722
total comprehensive income for the period attributable to equity  
holders of the parent company 9974 1810
 the figures for the 52 weeks to 26 september 2009 have been represented to take into account the discontinued operations arising as a result of the sale  
of dutch operations on 22 december 2009 
consolidated	 statement	 of	 comprehensive	 income	
for the 53 weeks ended 2 october 2010 	 plc	
annual report and financial statements 2010
32
notes 
2010		
£’000	
2009  
£’000
noncurrent	 assets
goodwill 14 245 245
property plant and equipment 15 31639 32584
31884 32829
current	 assets
inventories 24874 27426
trade and other receivables 17 7594 4105
cash and cash equivalents 18 41879 27270
74347 58801
total	 assets 106231 91630
current	 liabilities
trade and other payables 19 25588 30669
derivative financial instruments 21 10557 7826
bank loans 20 7250 7250
current tax liabilities 6181 5527
49576 51272
net	 current	 assets 24771 7529
noncurrent	 liabilities
bank loans 20 83466 90712
deferred tax liabilities 22 422 1877
provisions for liabilities and charges 22 1297 1051
total	 liabilities 134761 144912
net	 liabilities 28530 53282
equity
share capital 23 6273 5703
share premium 24 1001 1001
merger reserve 25 399 240
sharebased payment reserve 26 367 240
capital redemption reserve 27 20359 20359
foreign exchange reserve 28 – 336
retained earnings 29 56131 81161
total	 deficit	 attributable	 to	 equity	 holders	 of	 the	 parent 28530 53282
the accompanying notes are an integral part of these financial statements
the financial statements of topps tiles plc companies house number 3213782 on pages 31 to 62 were approved by the board of 
directors and authorised for issue on 29 november 2010 they were signed on its behalf by
mtm	 williams	 r 	 parker
director director
consolidated	 statement	 of	 financial	 position
as at 2 october 2010 	 plc	
annual report and financial statements 2010
33
other information review of the business governance financial	 statements
equity	 attributable	 to	 equity	 holders	 of	 the	 parent
share
capital
£’000
share
premium
£’000
merger
reserve
£’000
sharebased
payment
reserve
£’000
capital
redemption
reserve
£’000
foreign
exchange
reserve
£’000
retained	
earnings
£’000
total
equity
£’000
balance at 28 september 2008 5703 1001 240 322 20359 248 82986 55113
profit for the period –– – – –– 1722 1722
exchange differences on 
translation of foreign operations –– – – – 88 – 88
total comprehensive income for 
the period –– – – – 88 1722 1810 
credit to equity for equitysettled 
sharebased payments –– – 82 ––– 82
deferred tax on sharebased 
payment transactions –– – – –– 103 103 
balance at 26 september 2009 5703 1001 240 240 20359 336 81161 53282
profit and total comprehensive 
income for the period –– – – –– 9974 9974
shares issued in respect  
of placing and open offer 570 14296 – – ––– 14866
transfer to retained earnings – 14296 – – –– 14296 –
credit to equity for  
equitysettled sharebased 
payments –– – 127 ––– 127
deferred tax on  
sharebased payment 
transactions –– – – –– 121 121
release of reserve  
on disposal of subsidiary –– 639 – – 336 639 336
balance	 at	2	october 	 2010 6273	 1001	 399	 367	 20359	 –	56131 28530
consolidated	 statement	 of	 changes	 in	 equity
for the 53 weeks ended 2 october 2010 	 plc	
annual report and financial statements 2010
34
53	 weeks
ended
2	october
2010
£’000	
restated
52 weeks ended
26 september
2009
£’000
cash	 flow	 from	 operating	 activities
profit for the period 9974 1722
profitloss for the period from discontinued operations 1502 4977
taxation 3903 3182
fair value on interest rate derivatives 2780 5833
finance costs 5275 5607
investment revenue 453 329
other gains and losses 100 349
group operating profit 19877 21341
adjustments for
depreciation of property plant and equipment 4040 4317
impairment of property plant and equipment 815 1027
restructuring and other oneoff costs 401 469
share option chargecredit 127 82
increasedecrease in trade and other receivables 3351 3260
decrease in inventories 1853 919
decreaseincrease in payables 3991 2141
cash	 generated	 by	 operations 19771 33392
interest paid 5308 5901
taxation paid 4112 6514
net cash from operating activities 10351 20977
investing	 activities
interest received 107 303
purchase of property plant and equipment 4292 2096
proceeds on disposal of property plant and equipment 949 1972
net cash used infrom investment activities 3236 179
financing	 activities
proceeds from issue of share capital 14874 –
repayment of bank loans 7500 7500
net cash fromused in financing activities 7374 7500
net increase in cash and cash equivalents 14489 13656
cash and cash equivalents at beginning of period 27270 13977
effect of foreign exchange rate changes 120 363
cash	 and	 cash	 equivalents	 at	 end	 of	 period 41879 27270
 comparative numbers are presented after restating the cash flow statement to reflect the dutch business as a discontinued operation further information is provided 
in note 11
consolidated	 cash	 flow	 statement
for the 53 weeks ended 2 october 2010 	 plc	
annual report and financial statements 2010
35
other information review of the business governance financial	 statements
1	general	information
topps tiles plc is a company incorporated in the united kingdom under the companies act 2006 the address of the registered 
office is given on page 21 the nature of the group’s operations and its principal activity is set out in the directors’ report on  
page 22
these financial statements are presented in pounds sterling because that is the currency of the primary economic environment in 
which the group operates foreign operations are included in accordance with the policies set out in note 2l
adoption	 of	 new	 and	 revised	 standards	
in the current period the following new and revised standards and interpretations have been adopted and have affected the 
amounts reported in the financial statements
amendments to ifrs 7 financial instrument disclosures  
the amendments to ifrs 7 expand the disclosures required in respect of fair value measurements and liquidity risk the group 
has elected not to provide comparative information for these expanded disclosures in the current period in accordance with the 
transitional reliefs offered in these amendments
ifrs 8 operating segments 
ifrs 8 is a disclosure standard that has resulted in a redesignation of the group’s reportable segments see note 4
ias 1 revised 2007 presentation of financial statements 
this standard relates to the presentation of financial statements and has introduced a number of changes in the format and content 
of the financial statements
specifically this revised standard requires an entity to present a statement of financial position as at the beginning of the earliest 
comparative period in a complete set of financial statements ie to provide a second comparative for the statement of financial 
position when the entity applies an accounting policy retrospectively or makes a retrospective restatement or when the entity 
reclassifies items in the financial statements however the directors consider that because the adoption of ifrs 8 has no effect on 
the statement of financial position no presentation of a third statement of financial position is required
at the date of authorisation of these financial statements the following standards and interpretations which have not been applied 
in these financial statements were in issue but not yet effective
ifrs 3 revised 2008 business combinations
ias 24 revised 2009 related party disclosures
ias 27 revised 2008 consolidated and separate financial statements
ifric 17 distribution of noncash assets to owners
improvements to ifrss 2009
the directors anticipate that the adoption of these standards and interpretations in future periods will have no material impact on 
the financial statements of the group 
2	accounting 	 policies
a basis of accounting
the financial statements have been prepared in accordance with international financial reporting standards ifrss the financial 
statements have also been prepared in accordance with ifrss adopted by the european union and therefore the group financial 
statements comply with article 4 of the eu ias regulation the financial statements have been prepared on the historical cost basis 
except for the revaluation of financial instruments historical cost is generally based on the fair value of the consideration given in 
exchange for the assets 
based on a detailed review of the risks and uncertainties see page 1 1 of the business review management’s latest revised 
forecasts a range of sensitised scenarios and the current banking facilities the board has at the time of approving the financial 
statements a reasonable expectation that the group will continue to meet all of its financial commitments as they fall due and will 
be able to continue as a going concern 
the board therefore considers it appropriate to prepare the financial statements on the going concern basis 
the principal accounting policies adopted are set out below
b basis of consolidation
the consolidated financial statements incorporate the financial statements of the company and entities controlled by the company 
its subsidiaries control is achieved where the company has the power to govern the financial and operating policies of an 
investee so as to obtain benefits from its activities
the results of subsidiaries acquired or disposed of during the period are included in the consolidated statement of financial 
performance from the effective date of acquisition or up to the effective date of disposal as appropriate all intragroup 
transactions balances income and expenses are eliminated on consolidation
notes	 to	 the	 consolidated	 financial	 statements
for the 53 week period ended 2 october 2010 	 plc	
annual report and financial statements 2010
notes	 to	 the	 consolidated	 financial	 statements	 continued
for the 53 week period ended 2 october 2010
36
2	accounting 	 policies	 continued	
c financial period
throughout the financial statements directors’ report and business review references to 2010 mean at 2 october 2010 or the 
53 weeks then ended references to 2009 mean at 26 september 2009 or the 52 weeks then ended
d business combinations
the acquisition of subsidiaries is accounted for using the purchase method the cost of the acquisition is measured at the aggregate 
of the fair values at the date of exchange of assets given liabilities incurred or assumed and equity instruments issued by the 
group in exchange for control of the acquiree plus any costs directly attributable to the business combination the acquiree’s 
identifiable assets liabilities and contingent liabilities that meet the conditions for recognition under ifrs 3 are recognised at their 
fair value at the acquisition date except for noncurrent assets or disposal groups that are classified as held for sale in accordance 
with ifrs 5 non current assets held for sale and discontinued operations which are recognised and measured at fair value less 
costs to sell
goodwill arising on acquisition is recognised as an asset and initially measured at cost being the excess of the cost of the business 
combination over the group’s interest in the net fair value of the identifiable assets liabilities and contingent liabilities recognised 
if after reassessment the group’s interest in the net fair value of the acquiree’s identifiable assets liabilities and contingent liabilities 
exceeds the cost of the business combination the excess is recognised immediately in profit or loss
e goodwill
goodwill arising on consolidation represents the excess of the cost of acquisition over the group’s interest in the fair value of the 
identifiable assets and liabilities of a subsidiary at the date of acquisition goodwill is initially recognised as an asset at cost and 
is subsequently measured at cost less any accumulated impairment losses goodwill which is recognised as an asset is reviewed 
for impairment at least annually any impairment is recognised immediately in the statement of financial performance and is not 
subsequently reversed
for the purpose of impairment testing goodwill is allocated to each of the group’s cashgenerating units expected to benefit from 
the synergies of the combination cashgenerating units to which goodwill has been allocated are tested for impairment annually 
or more frequently when there is an indication that the unit may be impaired if the recoverable amount of the cashgenerating unit 
is less than the carrying amount of the unit the impairment loss is allocated first to reduce the carrying amount of any goodwill 
allocated to the unit and then to the other assets of the unit prorata on the basis of the carrying amount of each asset in the unit  
an impairment loss recognised for goodwill is not reversed in a subsequent period
on disposal of a subsidiary the attributable amount of goodwill is included in the determination of the profit or loss on disposal
goodwill arising on acquisitions before the date of transition to ifrss has been retained at the previous uk gaap amounts subject 
to being tested for impairment at that date goodwill of £15080000 written off to reserves under uk gaap prior to 1998 has not 
been reinstated and is not included in determining any subsequent profit or loss on disposal
f revenue recognition
revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods 
and services provided in the normal course of business net of discounts vat and other salesrelated taxes sales of goods are 
recognised when title has passed sales returns are provided for based on past experience and deducted from income
interest income is recognised when it is probable that the economic benefits will flow to the group and the amount of income can 
be measured reliably interest income is accrued on a time basis by reference to the principal outstanding and at the effective 
interest rate applicable which is the rate that exactly discounts estimated future cash receipts through the expected life of the 
financial asset to that asset’s net carrying amount on initial recognition
dividend income from investments is recognised when the shareholders’ rights to receive payment have been established provided 
that it is probable that the economic benefit will flow to the group and the amount of income can be measured reliably
g exceptional items
the group has identified certain items as exceptional where they relate to oneoff costs incurred in the period that they do not 
expect to be repeated on an annual basis the principles applied in identifying exceptional costs are applied consistently each 
period 	 plc	
annual report and financial statements 2010
37
other information review of the business governance financial	 statements
2	accounting	 policies	 continued
h property plant and equipment
property plant and equipment are stated at cost less accumulated depreciation and any recognised impairment loss
depreciation is charged so as to write off the cost of assets less estimated residual value over their estimated useful lives on the 
following bases
freehold buildings 2 per annum on cost on a straightline basis
short leasehold land and buildings over the period of the lease up to 25 years on a straightline basis
fixtures and fittings over 10 years or at 25 per annum on a reducing balance basis as appropriate
motor vehicles 25 per annum on a reducing balance basis
freehold land is not depreciated
residual value is calculated on prices prevailing at the date of acquisition
the gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and 
the carrying amount of the asset and is recognised in the statement of financial performance
i impairment of tangible and intangible assets excluding goodwill
at each period end the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that 
those assets have suffered an impairment loss if any such indication exists the recoverable amount of the asset is estimated in order 
to determine the extent of the impairment loss if any where the asset does not generate cash flows that are independent from 
other assets the group estimates the recoverable amount of the cashgenerating unit to which the asset belongs
recoverable amount is the higher of fair value less costs to sell and value in use in assessing value in use the estimated future cash 
flows are discounted to their present value using a pretax discount rate that reflects current market assessments of the time value of 
money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted
if the recoverable amount of an asset or cashgenerating unit is estimated to be less than its carrying amount the carrying 
amount of the asset cashgenerating unit is reduced to its recoverable amount an impairment loss is recognised as an expense 
immediately unless the relevant asset is carried at a revalued amount in which case the impairment loss is treated as a revaluation 
decrease
where an impairment loss subsequently reverses the carrying amount of the asset cashgenerating unit is increased to the revised 
estimate of its recoverable amount but so that the increased carrying amount does not exceed the carrying amount that would 
have been determined had no impairment loss been recognised for the asset cashgenerating unit in prior years a reversal of an 
impairment loss is recognised as income immediately unless the relevant asset is carried at a revalued amount in which case the 
reversal of the impairment loss is treated as a revaluation increase
j inventories
inventories are stated at the lower of cost and net realisable value and relate solely to finished goods for resale cost comprises 
purchase price of materials and an attributable proportion of distribution overheads based on normal levels of activity and is 
valued at standard cost net realisable value represents the estimated selling price less costs to be incurred in marketing selling 
and distribution provision is made for those items of inventory where the net realisable value is estimated to be lower than cost  
the net replacement value of inventories is not considered materially different from that stated in the consolidated statement of 
financial position 	 plc	
annual report and financial statements 2010
notes	 to	 the	 consolidated	 financial	 statements	 continued
for the 53 week period ended 2 october 2010
38
2	accounting 	 policies	 continued	
k taxation
the tax expense represents the sum of the tax currently payable and deferred tax
the tax currently payable is based on taxable profit for the period taxable profit differs from net profit as reported in the statement 
of financial performance because it excludes items of income or expense that are taxable or deductible in other periods and it 
further excludes items that are never taxable or deductible the group’s liability for current tax is calculated using tax rates that 
have been enacted or substantively enacted by the balance sheet date
deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities 
in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using 
the balance sheet liability method deferred tax liabilities are generally recognised for all taxable temporary differences and 
deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible 
temporary differences can be utilised such assets and liabilities are not recognised if the temporary difference arises from the 
initial recognition of goodwill or from the initial recognition other than in a business combination of other assets and liabilities in a 
transaction that affects neither the tax profit nor the accounting profit
deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and interests in 
jointly controlled entities except where the group is able to control the reversal of the temporary difference and it is probable that 
the temporary difference will not reverse in the foreseeable future
deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is 
realised deferred tax is charged or credited in the statement of financial performance except when it relates to items charged or 
credited directly to equity in which case the deferred tax is also dealt with in equity
deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax 
liabilities and when they relate to income taxes levied by the same taxation authority and the group intends to settle its current tax 
assets and liabilities on a net basis
l foreign currency
transactions in currencies other than the entity’s functional currency foreign currencies are recorded at the rates of exchange 
prevailing on the dates of transactions at each period end monetary assets and liabilities that are denominated in foreign 
currencies are retranslated at the rates prevailing on that date nonmonetary items carried at fair value that are denominated in 
foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined nonmonetary items that 
are measured in terms of historical cost in a foreign currency are not retranslated
exchange differences arising on the settlement of monetary items and on the retranslation of monetary items are included in the 
statement of financial performance for the period exchange differences arising on the retranslation of nonmonetary items carried 
at fair value are included in the statement of financial performance for the period
exchange differences are recognised in profit or loss in the period in which they arise except for
•  exchange differences on foreign currency borrowings relating to assets under construction for future productive use which 
are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency 
borrowings
•  exchange differences on transactions entered into to hedge certain foreign currency risks see below under financial instruments 
hedge accounting and
•  exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither 
planned nor likely to occur therefore forming part of the net investment in the foreign operation which are recognised initially in 
other comprehensive income and reclassified from equity to profit or loss on disposal or partial disposal of the net investment
for the purpose of presenting consolidated financial statements the assets and liabilities of the group’s foreign operation are 
translated at exchange rates prevailing at period end dates income and expense items are translated at the average exchange 
rates for the period unless exchange rates fluctuate significantly during the period in which case the exchange rates at the dates of 
transactions are used exchange differences arising are recognised in other comprehensive income and accumulated in equity in 
the group’s foreign exchange reserve such differences are recognised as income or expense in the period in which the operation 
is disposed of 	 plc	
annual report and financial statements 2010
39
other information review of the business governance financial	 statements
2	accounting 	 policies	 continued
m leases
rentals payable under operating leases are charged to income on a straightline basis over the term of the relevant lease except 
where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset 
are consumed contingent rentals arising under operating leases are recognised as an expense in the period in which they are 
incurred
in the event that lease incentives are received to enter into operating leases such incentives are recognised as a liability  
the aggregate benefit of incentives is recognised as a reduction of rental expense on a straightline basis except where  
another systematic basis is more representative of the time pattern in which economic benefits from the leased asset  
are consumed
n investments
fixed asset investments are shown at cost less provision for impairment
o retirement benefit costs
for defined contribution schemes the amount charged to the statement of financial performance in respect of pension costs is the 
contributions payable in the year differences between contributions payable in the year and contributions actually paid are shown 
as either accruals or prepayments in the balance sheet
p finance costs
finance costs which are directly attributable to the construction of tangible fixed assets are capitalised as part of the cost of those 
assets the commencement of capitalisation begins when both finance costs and expenditures for the asset are being incurred and 
activities that are necessary to get the asset ready for use are in progress capitalisation ceases when substantially all the activities 
that are necessary to get the asset ready for use are complete
all other finance costs of debt are recognised in the statement of financial performance over the term of the debt at a constant rate 
on the carrying amount
q financial instruments
financial assets and financial liabilities are recognised in the group’s balance sheet when the group becomes a party to the 
contractual provisions of the instrument
financial assets are classified into the following specified categories financial assets ‘at fair value through profit or loss’ fvtpl 
‘heldtomaturity’ investments ‘availableforsale’ afs financial assets and ‘loans and receivables’ the classification depends on 
the nature and purpose of the financial assets and is determined at the time of initial recognition
financial assets at fvtpl
financial assets are classified as at fvtpl where the financial asset is either held for trading or it is designated as at fvtpl  
the group has no designated fvtpl financial assets
a financial asset is classified as held for trading if
• it has been acquired principally for the purpose of selling in the near future or
•  it is a part of an identified portfolio of financial instruments that the group manages together and has a recent actual pattern of 
shortterm profittaking or
• it is a derivative that is not designated and effective as a hedging instrument
financial assets at fvtpl are stated at fair value with any resultant gain or loss recognised in profit or loss fair value is determined 
in the manner described in note 2v
loans and receivables
trade receivables loans and other receivables that have fixed or determinable payments that are not quoted in an active market 
are classified as loans and receivables loans and receivables are measured at amortised cost using the effective interest method 
less any impairment interest income is recognised by applying the effective interest rate except for shortterm receivables when the 
recognition of interest would be immaterial
the effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income 
over the relevant period the effective interest rate is the rate that exactly discounts estimated future cash receipts including all fees 
on points paid or received that form an integral part of the effective interest rate transaction costs and other premiums or discounts 
through the expected life of the debt instrument or where appropriate a shorter period to the net carrying amount on initial 
recognition
income is recognised on an effective interest basis for debt instruments other than those financial assets and liabilities classified as 
at fvtpl 	 plc	
annual report and financial statements 2010
notes	 to	 the	 consolidated	 financial	 statements	 continued
for the 53 week period ended 2 october 2010
40
2	accounting 	 policies	 continued
q financial instruments continued 
impairment of financial assets
financial assets other than those at fvtpl are assessed for indicators of impairment at each balance sheet date financial assets 
are impaired where there is objective evidence that as a result of one or more events that occurred after the initial recognition of 
the financial asset the estimated future cash flows of the investment have been impacted
for certain categories of financial asset such as trade receivables assets that are assessed not to be impaired individually are 
subsequently assessed for impairment on a collective basis objective evidence of impairment for a portfolio of receivables could 
include the group’s past experience of collecting payments an increase in the number of delayed payments in the portfolio past 
the average credit period of 39 days as well as observable changes in national or local economic conditions that correlate with 
default on receivables
the carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of 
trade receivables where the carrying amount is reduced through the use of an allowance account when a trade receivable is 
considered uncollectible it is written off against the allowance account subsequent recoveries of amounts previously written off are 
credited against the allowance account changes in the carrying amount of the allowance account are recognised in profit or loss
if in a subsequent period the amount of the impairment loss decreases and the decrease can be related objectively to an event 
occurring after the impairment was recognised the previously recognised impairment loss is reversed through profit or loss to the 
extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost 
would have been had the impairment not been recognised
cash and cash equivalents 
cash and cash equivalents comprise cash on hand and demand deposits and other shortterm highly liquid investments that are 
readily convertible to a known amount of cash within three months and are subject to an insignificant risk of changes in value
derecognition of financial assets
the group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire or it transfers the 
financial asset and substantially all the risks and rewards of ownership of the asset to another entity if the group neither transfers 
nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset the group recognises 
its retained interest in the asset and an associated liability for amounts it may have to pay if the group retains substantially all 
the risks and rewards of ownership of a transferred financial asset the group continues to recognise the financial asset and also 
recognises a collateralised borrowing for the proceeds received
financial liabilities and equity
financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into 
an equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities 
equity instruments issued by the group are recorded at the proceeds received net of direct issue costs
financial liabilities are classified as at fvtpl where the financial liability is either held for trading or it is designated as at fvtpl  
the group does not have any designated fvtpl liabilities
a financial liability is classified as held for trading if
• it has been incurred principally for the purpose of disposal in the near future or 
•  it is a part of an identified portfolio of financial instruments that the group manages together and has a recent actual pattern of 
shortterm profit taking or
• it is a derivative that is not designated and effective as a hedging instrument
financial liabilities at fvtpl are stated at fair value with any resultant gain or loss recognised in profit or loss fair value is 
determined in the manner described in note 2v
other financial liabilities
other financial liabilities including borrowings are initially measured at fair value net of transaction costs other financial liabilities 
are subsequently measured at amortised cost using the effective interest method with interest expense recognised on an effective 
yield basis the effective interest method is a method of calculating the amortised cost of a financial liability and of allocating 
interest expense over the relevant period the effective interest rate is the rate that exactly discounts estimated future cash payments 
through the expected life of the financial liability or where appropriate a shorter period to the net carrying amount on initial 
recognition 	 plc	
annual report and financial statements 2010
41
other information review of the business governance financial	 statements
2	accounting 	 policies	 continued
q financial instruments continued 
derecognition of financial liabilities
the group derecognises financial liabilities when and only when the group’s obligations are discharged cancelled or they 
expire
derivative financial instruments
the group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates
the group uses foreign exchange forward contracts and interest rate swap contracts to manage these exposures the group does 
not hold or issue derivative financial instruments for speculative purposes
the use of financial derivatives is governed by the group’s policies approved by the board of directors on the use of financial 
derivatives
derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured  
to their fair value at each period end date the resulting gain or loss is recognised in profit or loss immediately
a derivative is presented as a noncurrent asset or a noncurrent liability if the remaining maturity of the instrument is more than  
12 months and it is not expected to be realised or settled within 12 months other derivatives are presented as current assets or 
current liabilities
derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives when their risks 
and characteristics are not closely related to those of the host contracts and the host contracts are not measured at fair value with 
changes in fair value recognised in profit or loss
r sharebased payments
the group has applied the requirements of ifrs 2 sharebased payments in accordance with the transitional provisions ifrs 2 has 
been applied to all grants of equity instruments after 7 november 2002 that were unvested as of 1 october 2005
the group issues equity settled sharebased payments to certain employees equitysettled sharebased payments are measured at 
fair value excluding the effect of non marketbased vesting conditions at the date of grant the fair value determined at the grant 
date of the sharebased payment is expensed on a straightline basis over the vesting period based on the group’s estimate of 
shares that will eventually vest fair value is measured by use of the black scholes model 
the group provides employees with the ability to purchase the group’s ordinary shares at 80 of the current market value through 
the operation of its share save scheme the group records an expense based on its estimate of the 20 discount related to shares 
expected to vest on a straightline basis over the vesting period
s trade payables
trade payables are initially measured at fair value and are subsequently measured at amortised cost using the effective interest 
rate method
t operating profit
operating profit is stated after charging restructuring costs but before property disposals investment income and finance costs
u provisions
provisions are recognised when the group has a present obligation legal or constructive as a result of a past event and it is 
probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of that 
obligation provisions are measured at the directors’ best estimate of the expenditure required to settle the obligation at the balance 
sheet date and are discounted to present value where the effect is material
v critical accounting judgements and key sources of estimation uncertainty
in the application of the group’s accounting policies which are described above the directors are required to make judgements 
estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources 
the estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant 
actual results may differ from these estimates
the estimates and underlying assumptions are reviewed on an ongoing basis revisions to accounting estimates are recognised in 
the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods  
if the revision affects both current and future periods
the critical judgement apart from those involving estimations which are dealt with separately below that the directors have made 
in the process of applying the group’s accounting policies and that has the most significant effect on the amounts recognised in 
financial statements is the detailed criteria for the recognition of revenue from the sale of goods set out in ias 18 revenue and  
in particular whether the group has transferred to the buyer the significant risks and rewards of ownership of the goods  
the group only recognises revenue where this is the case 	 plc	
annual report and financial statements 2010
notes	 to	 the	 consolidated	 financial	 statements	 continued
for the 53 week period ended 2 october 2010
42
2	accounting 	 policies	 continued
v critical accounting judgements and key sources of estimation uncertainty continued
key sources of estimation uncertainty
the key assumptions concerning the future and other key sources of estimation uncertainty at the period end date that have a 
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period  
are discussed below
impairment of goodwill
determining whether goodwill is impaired requires an estimation of the value in use of the cashgenerating units to which goodwill 
has been allocated the value in use calculation requires the group to estimate the future cash flows expected to arise from the 
cashgenerating unit and to discount by a suitable discount rate in order to calculate the present value the carrying amount of 
goodwill at the balance sheet date is £02 million 2009 £02 million 
impairment of property plant and equipment
during the period the group has closed 9 stores in the uk including some before their lease end dates as the fixtures and fittings 
within these stores cannot be reused in other locations within the group the carrying value of these assets has been fully provided 
for in the period
onerous lease provisions
during the period the group has continued to review the performance of its store portfolio which has resulted in two further stores 
being exited before their lease term has expired 2009 8 stores in respect of these leases and those in relation to stores exited 
before lease end dates in the prior period that are still vacant the group has provided for what it considers to be the unavoidable 
costs prior to lease termination or sublease the group has further reviewed any trading loss making stores and provided for those 
leases considered to be onerous these estimates are based upon available information and knowledge of the property market 
the ultimate costs to be incurred in this regard may vary from the estimates 
dilapidations provision
the group has estimated its likely dilapidation charges for its store portfolio and provided accordingly this estimate involves an 
assessment of average costs per store and the expected exit period for the current portfolio and is based on management’s best 
estimate taking into account knowledge of the property market and historic trends the ultimate costs to be incurred may vary from 
the estimates
fair value of derivatives and other financial instruments
as described above the directors use their judgement in selecting an appropriate valuation technique for financial instruments not 
quoted in an active market valuation techniques commonly used by market practitioners are applied such as discounted cash 
flows and assumptions regarding market volatility
tax
the directors are aware of the material impact that corporation tax has on the group accounts and therefore they ensure that the 
group continues to provide at a sufficient level for both current and deferred tax liabilities
3	revenue
an analysis of group revenue is as follows
53	 weeks	
ended	
2	october
2010
£’000
restated
52 weeks ended
 26 september
2009
£’000
topps tiles 165068 158643
tile clearing house 17338 20153
revenue from the sale of goods 182406 178796
interest received on interest rate swaps – 79
interest receivable 457 155
total revenue 182863 179030
interest receivable represents gains on loans and receivables there are no other gains recognised in respect of loans and 
receivables
 the figures for the 52 weeks to 26 september 2009 have been represented to take into account the discontinued operations arising as a result of the sale of dutch 
operations on 22 december 2009 	 plc	
annual report and financial statements 2010
43
other information review of the business governance financial	 statements
4	business 	segments
the group has adopted ifrs 8 operating segments with effect from 27 september 2009 ifrs 8 requires operating segments to 
be identified on the basis of internal reports about components of the group that are regularly reviewed by the chief executive to 
allocate resources to the segments and to assess their performance these segments comprise a topps tiles retail operations in the 
uk b tch retail operations in the uk and c the topps floorstore operation in holland which was disposed of on 22 december 
2009
segment result represents the profitloss earned by each segment without allocation of the central administration costs including 
directors’ salaries other gains and losses investment income finance costs fair value loss on interest rate derivatives and income 
tax expense
revenues from major products and services and information about major customers
information regarding the above is required by ifrs 8 paragraphs 32 and 34 but is not given in these notes to the financial 
statements because of the nature of the group’s business the group’s principal activity being a ‘specialist tile and woodflooring 
retailer’ is reported in the segments shown below and due to its wide product offering the disclosure of revenues from major 
products is not appropriate as the group’s revenue is derived from sales to the general public it has no reliance on any individual 
major customer
geographical segments
the group’s reporting format is by business segment although the group operated in two geographic segments the uk and 
holland during the period neither the revenue from sales to external customers nor the value of net assets within holland 
represented more than 10 of group totals
amounts reported for the comparative periods have been represented to conform to the requirements of ifrs 8 no intersegment 
sales were made during the periods presented
the following is an analysis of the group’s revenue and results by reportable segment
53	 weeks	 ended	2	october 	 2010
topps
£’000
tch
£’000
topps
floorstore
£’000
discontinued
operations
£’000
consolidated
£’000
revenue 165068	 17338	 1014	 1014 182406	
segment result 20276	 964	 1022	 1022 21240
central administration costs 1363
operating profit 19877	
other gains and losses 100	
investment revenues 453
finance costs 5275
fair value loss on interest rate derivatives 2780
profit before tax 12375	
tax 3903
8472	
profit for the period from discontinued operations 1502	
profit after tax and discontinued operations 9974	 	 plc	
annual report and financial statements 2010
notes	 to	 the	 consolidated	 financial	 statements	 continued
for the 53 week period ended 2 october 2010
44
4	business 	segments	continued
other information
topps
£’000
tch
£’000
topps
floorstore
£’000
head	 office	
distribution	
centre
£’000
discontinued
operations
£’000
consolidated
£’000
capital additions 2986 836 – 1031 – 4853
depreciation 2704 952 3 384 3 4040
impairment losses recognised 374 441 48 – 48 815
balance sheet
segment assets 113223 8268 – – 121491
unallocated corporate assets – – – 15260 15260
consolidated total assets 113223 8268 – 15260 106231
segment liabilities 20824 5707 – – 26531
unallocated corporate liabilities – – – 108230 108230
consolidated total liabilities 20824 5707 – 108230 134761
unallocated corporate assets include the group’s overdraft which in the statement of financial position is presented net within cash 
and cash equivalents due to a legal right of offset between group entities
unallocated corporate liabilities comprise bank loans derivatives corporation and deferred tax liabilities and sundry head office 
creditors
restated
52 weeks ended 26 september 2009
topps
£’000
tch
£’000
topps
floorstore
£’000
discontinued
operations
£’000
consolidated
£’000
revenue 158643 20153 7265 7265 178796 
segment result 20207 1625 4977 4977 21832
central administration costs 491
operating profit 21341
other gains and losses 349 
investment revenues 329 
finance costs 5607
fair value loss on interest rate derivatives 5833
profit before tax 9881
tax 3182
6699 
loss for the period from discontinued operations 4977
profit after tax and discontinued operations 1722 
other information
topps
£’000
tch
£’000
topps
floorstore
£’000
head office 
distribution centre
£’000
discontinued
operations
£’000
consolidated
£’000
capital additions 1068 370 – 658 – 2096
depreciation 2869 689 324 759 324 4317
impairment losses recognised 209 610 2025 208 2025 1027
balance sheet
segment assets 96718 7109 926 – 103827
unallocated corporate assets – – – 13123 13123
consolidated total assets 96718 7109 926 13123 90704
segment liabilities 17690 3059 2800 – 20749
unallocated corporate liabilities – – – 121363 121363
consolidated total liabilities 17690 3059 2800 121363 142112
 the figures for the 52 weeks ended 26 september 2009 have been represented to take into account the discontinued operations arising as a result of the sale of 
dutch operations on 22 december 2009 	 plc	
annual report and financial statements 2010
45
other information review of the business governance financial	 statements
5	exceptional 	 items
during 2010 9 stores in the uk 2009 15 were closed resulting in a writeoff of property plant and equipment totalling 
£815000 the group also reviewed its potential exposure to future lease commitments pertaining to closed stores resulting in a 
charge of £401000
53	 weeks	
ended	
2	october
2010
£’000
restated
52 weeks ended
 26 september
2009
£’000
impairment of property plant and equipment 815 1027
restructuring and other oneoff costs 401 469
1216 1496
 the figures for the 52 weeks ended 26 september 2009 have been represented to take into account the discontinued operations arising as a result of the sale of 
dutch operations on 22 december 2009
6	profit 	 before	 taxation
profit before taxation for the period has been arrived at after chargingcrediting
53	 weeks	
ended	
2	october
2010
£’000
restated
52 weeks ended
 26 september
2009
£’000
depreciation of property plant and equipment 4040 4317
impairment of property plant and equipment 815 1027
restructuring and other oneoff costs 401 469
staff costs see note 7 40152 40242
operating lease rentals 20861 20730
write down of inventories recognised as an expense 2493 3539
cost of inventories recognised as expense 73936 76080
net foreign exchange lossgain 17 25
 the figures for the 52 weeks ended 26 september 2009 have been represented to take into account the discontinued operations arising as a result of the sale of 
dutch operations on 22 december 2009
analysis of auditors’ remuneration is provided below
53	 weeks	
ended	
2	october
2010
£’000
52 weeks ended
 26 september
2009
£’000
fees payable to the company’s auditors with respect to the company’s annual accounts 40 44
fees payable to the company’s auditors and their associates for other audit services to the group
audit of the company’s subsidiaries pursuant to legislation 105 110
total audit fees 145 154
tax services
compliance services 47 57
advisory services 21 5
corporate finance services – business advice – 175
other services – 47
total non audit fees 68 284
213 438
a description of the work of the audit committee is set out on page 26 and includes an explanation of how auditor objectivity and 
independence is safeguarded when nonaudit services are provided by the auditors  	 plc	
annual report and financial statements 2010
notes	 to	 the	 consolidated	 financial	 statements	 continued
for the 53 week period ended 2 october 2010
46
7	staff 	 costs
the average monthly number of persons and their full time equivalents employed by the group and company in the uk during the 
accounting period including executive directors was
53	 weeks	
ended	
2	october
2010
number
employed
52 weeks 
ended
 26 september
2009
number
employed
selling 1441 1463
administration 174 162
1615 1625
2010
£’000
2009
£’000
their aggregate remuneration comprised
wages and salaries including ltip see note 31 36541 36570
social security costs 3430 3486
other pension costs see note 30b 181 186
40152 40242
details of directors’ emoluments are disclosed on page 29 employee profit sharing of £69 million 2009 £53 million is included 
in the above and comprises sales commission and bonuses
8	other	 gainslosses
other gains in 2010 relate to the sale of one freehold property and in 2009 the other losses relate to the sale of two freehold 
properties
9	investment	 revenue	 finance	 costs	 and	 fair	 value	 loss	 on	 interest	 rate	 derivatives
53	 weeks	
ended	
2	october
2010
£’000
restated
52 weeks ended
 26 september
2009
£’000
investment	 revenue
bank interest receivable and similar income 457 234
fair value lossgain on forward currency contracts 4 95
453 329
finance	 costs
interest on bank loans and overdrafts 5275 5607
no finance costs are appropriate to be capitalised in the period or the prior period
interest on bank loans and overdrafts represents gains and losses on financial liabilities measured at amortised cost including 
interest charges levied together with interest paid on the interest rate derivatives of £2678000 2009 £1016000 there are 
no other gains or losses recognised in respect of financial liabilities measured at amortised cost net losses from the movement in 
fair value on held for trading assets and liabilities derivative instruments were £2784000 2009 £5738000 which include 
fair value losses on interest rate swaps of £2780000 2009 £5833000 and fair value losses on forward currency contracts of 
£4000 2009 £95000 gain included within bank interest receivable and similar income is interest receivable on interest rate 
derivatives of £nil 2009 £79000
 the figures for the 52 weeks ended 26 september 2009 have been represented to take into account the discontinued operations arising as a result of the sale of 
dutch operations on 22 december 2009 	 plc	
annual report and financial statements 2010
47
other information review of the business governance financial	 statements
10	 taxation
 
continuing	 operations
53	 weeks	
ended	
2	october
2010
£’000
restated
52 weeks ended
 26 september
2009
£’000
current tax – charge for the year 5276 3441
current tax – adjustment in respect of previous periods 39 275
deferred tax – effect of reduction in uk corporation tax rate 31 –
deferred tax – credit for year note 22 1246 102
deferred tax – adjustment in respect of previous periods note 22 57 86
3903 3182
corporation tax in the uk is calculated at 28 2009 28 of the estimated assessable profit for the period taxation for other 
jurisdictions is calculated at the rates prevailing in the respective jurisdictions
the charge for the year can be reconciled to the profit per the statement of financial performance as follows
continuing	 operations
53	 weeks	
ended	
2	october
2010
£’000
restated
52 weeks ended
 26 september
2009
£’000
profit before taxation 12375 9881
tax at the uk corporation tax rate of 28 2009 28 3465 2767
tax effect of expenses that are not deductible in determining taxable profit 173 276
tax effect of chargeable gain lower thanin excess of profit on sale of freehold property 28 98
tax effect of tangible fixed assets which do not qualify for capital allowances 389 402
tax effect of adjustment in respect of prior periods 96 361
tax expense for the period 3903 3182
discontinued	 operations
53	 weeks	
ended	
2	october
2010
£’000
restated
52 weeks ended
 26 september
2009
£’000
current tax – adjustment in respect of previous periods 480 –
480 –
 the figures for the 52 weeks ended 26 september 2009 have been represented to take into account the discontinued operations arising as a result of the sale of 
dutch operations on 22 december 2009 	 plc	
annual report and financial statements 2010
notes	 to	 the	 consolidated	 financial	 statements	 continued
for the 53 week period ended 2 october 2010
48
11	 discontinued	 operations
on 18 december 2009 the group announced that it was withdrawing funding to the dutch operation which resulted in topps 
retail bv being placed into administration on 22 december 2009 the transaction was completed on 22 december 2009 on 
which date control of topps retail bv passed to the administrator and is therefore accounted as a disposal in the consolidated 
financial statements
the results of the discontinued operations which have been included in the consolidated statement of financial performance were 
as follows
period
ended
22	 december
2009
£’000
52 weeks
ended
26 september
2009
£’000
revenue 1014	 7265 
expenses 1329 12242
loss before tax 315 4977
attributable tax expense 	– –
315 4977
profit on disposal of discontinued operations 1337	 –
1022 4977
attributable tax expense 480	 –
net profitloss attributable to discontinued operations attributable to owners of the company 1502 4977
during the year topps retail bv received £204000 2009 received £208000 from the group’s net operating cash flows paid 
£nil 2009 £175000 in respect of investing activities and paid £nil 2009 £nil in respect of financing activities
a profit of £1337 000 arose on the disposal of topps retail bv being the proceeds of disposal £nil net of the carrying amount of 
the subsidiary’s assets and liabilities further detail is provided in the table on the following page
the effect of discontinued operations on segment results is disclosed in note 4 
the net liabilities of topps retail bv at the date of disposal and for the comparative period are detailed below
22	 december
2009
£’000
26 september
2009
£’000
property plant and equipment 44 92
inventories 596 699
trade receivables 26 136
sundry payables 293 517
current tax receivables 7 27
trade payables 773 1104
onerous lease provision 340 436
foreign exchange reserve 288 336
bank overdraft 	 316 112
	 1337 1551
total consideration 	–
gain on disposal 1337	 	 plc	
annual report and financial statements 2010
49
other information review of the business governance financial	 statements
12	dividends
there was no final dividend paid in respect of the 52 week period ended 26 september 2009 2008 £nil or interim dividend for 
the 27 weeks ended 3 april 2010 2009 £nil
2010
£’000
2009
£’000
proposed final dividend for the 53 week period ended 2 october 2010 of £001 
2009 £nil per share 1882 –
the proposed final dividend is subject to approval by shareholders at the annual general meeting and has not been included as a 
liability in these financial statements
13	 earnings	 per	 share
the calculation of earnings per share is based on the earnings for the financial period attributable to equity shareholders and the 
weighted average number of ordinary shares 
the number of shares in issue for the prior period has been adjusted retrospectively for the bonus element of the placing and open 
offer completed in november 2009 basic and diluted earnings per share have accordingly been restated for the 52 week period 
ended 26 september 2009 as follows
2010
number	 of
shares
restated
2009
number of
shares
weighted average number of shares
for basic earnings per share 185643741 171836222
weighted average number of shares under option 4123000 1936826
for diluted earnings per share 189766741 173773048
the calculation of the basic and diluted earnings per share used the same denominators as shown above for both basic and diluted 
earnings per share the adjusted earnings figure is based on the following data
from	 continuing	 and	 discontinuing	 operations
53	 weeks	
ended	
2	october
2010
£’000
52 weeks ended
 26 september
2009
£’000
profit after tax for the period 9974 1722
post tax effect of
impairment of property plant and equipment 863 3052
interest rate derivative charge 2001 4199
property disposal gain loss 100 349
restructuring and other oneoff costs 977 2005
adjusted profit after tax for the period 11761 11327
from	 continuing	 operations
2010
£’000
2009
£’000
profit after tax for the period 8472 6699
post tax effect of
impairment of property plant and equipment 815 1027
interest rate derivative charge 2001 4199
property disposal gain loss 100 349
restructuring and other oneoff costs 289 339
adjusted profit after tax for the period 11477 12613
from	 discontinued	 operations 2010 2009
basic 081p – 290p
diluted 079p – 286p 	 plc	
annual report and financial statements 2010
notes	 to	 the	 consolidated	 financial	 statements	 continued
for the 53 week period ended 2 october 2010
50
14	 goodwill
£’000
cost and carrying amount at 27 september 2008 26 september 2009 and 2 october 2010 245
the balance of goodwill remaining is the carrying value that arose on the acquisition of surface coatings ltd in 1998
the group tests goodwill annually for impairment or more frequently if there are indications that goodwill might be impaired 
goodwill is allocated to the tch segment
the recoverable amounts are determined from value in use calculations the key assumptions for the value in use calculations 
are those regarding the discount rates growth rates and expected changes to selling prices and direct costs during the period 
management estimates discount rates based on the group’s weighted average cost of capital the growth rates are based on 
industry growth forecasts changes in selling prices and direct costs are based on past practices and expectations of future 
changes in the market discounted cash flows are calculated using a post tax rate of 60 2009 58
the group prepares cash flow forecasts derived from the most recent financial budgets approved by management for the next five 
years and extrapolates cash flows for the following five years based on an estimated growth rate of 2 2009 2 this rate does 
not exceed the average longterm growth rate for the relevant markets
the accounting judgements and sources of estimation uncertainty involved in assessing any impairment loss are referred to in  
note 2 of these notes to the financial statements
as a result of the annual test of impairment of goodwill no impairment has been identified for the current period  	 plc	
annual report and financial statements 2010
51
other information review of the business governance financial	 statements
15	 property	 plant	 and	 equipment
land	 and	 buildings
freehold
£’000
short
leasehold
£’000
fixtures
and
fittings
£’000
motor
vehicles
£’000
total
£’000
cost
at 28 september 2008 16648 1842 43603 343 62436
foreign exchange movement – – – 21 21
additions 618 – 1438 40 2096
disposals 2412 – 1322 198 3932
at 26 september 2009 14854 1842 43719 206 60621
additions 1002 – 3832 19 4853
disposals 850 – – 202 1052
at	2	october 	 2010 15006 1842 47551 23 64422
accumulated	 depreciation	 and	 impairment
at 28 september 2008 1022 1145 19737 146 22050
foreign exchange movement – – – 13 13
charge for the period 246 125 4227 43 4641
provision for impairment 208 – 2844 – 3052
eliminated on disposals 98 – 1523 98 1719
at 26 september 2009 1378 1270 25285 104 28037
charge for the period 213 113 3702 15 4043
provision for impairment – 66 749 – 815
eliminated on disposals – – – 112 112
at	2	october 	 2010 1591 1449 29736 7 32783
carrying	 amount
at	2	october 	 2010 13415 393 17815 16 31639
at 26 september 2009 13476 572 18434 102 32584
freehold land and buildings include £4104000 of land 2009 £4104000 on which no depreciation has been charged in the 
current period
cumulative finance costs capitalised in the cost of tangible fixed assets amount to £nil 2009 £nil
the group has no contractual commitments for the acquisition of property plant and equipment 2009 £nil
during the period the group has closed 9 stores in the uk including some before their lease end dates as the fixtures and fittings 
within these stores cannot be reused in other locations within the group the carrying value of these assets has been fully provided 
for in the period with the associated impairment charge included within other operating expenses 
16	 subsidiaries
a list of the significant subsidiaries including the name country of incorporation and proportion of ownership interest is given in 
note 3 to the company’s separate financial statements 	 plc	
annual report and financial statements 2010
notes	 to	 the	 consolidated	 financial	 statements	 continued
for the 53 week period ended 2 october 2010
52
17	 trade	 and	 other	 receivables
2010
£’000
2009
£’000
amounts	 falling	 due	 within	 one	 year
amounts receivable for the sale of goods 420 655
other debtors and prepayments
 – rent and rates 5503 1438
 – derivative financial instruments – 49
 – other 1671 1963
7594 4105
the directors consider that the carrying amount of trade and other receivables at 2 october 2010 and 26 september 2009 
approximates to their fair value on the basis of discounted cash flow analysis
credit risk
the group’s principal financial assets are bank balances and cash and trade receivables
the group considers that it has no significant concentration of credit risk the majority of sales in the business are cash based sales 
in the stores
total trade receivables net of allowances held by the group at 2 october 2010 amounted to £04 million 2009 £07 million 
these amounts mainly relate to insurance generated sales tesco clubcard scheme sundry trade accounts and contracts division 
generated sales in relation to these sales the average credit period taken is 39 days 2009 65 days and no interest is charged 
on the receivables trade receivables between 60 days and 120 days are provided for based on estimated irrecoverable amounts 
from the sale of goods determined by reference to past default experience
before accepting any new customer the group uses an external credit scoring system to assess the potential customer’s credit 
quality and defines credit limits by customer limits and scoring attributed to customers are reviewed periodically of the trade 
receivables balance at the end of the year £100000 2009 £1 12000 is due from independent inspections and £104000 
2009 £nil is due from tesco plc the group’s two largest customers 
included in the group’s trade receivable balance are debtors with a carrying amount of £1 10000 2009 £64000 which are 
past due at the reporting date for which the group has not provided as there has not been a significant change in credit quality 
and the amounts are still considered recoverable the group does not hold any collateral over these balances the average age 
of these receivables is 124 days 2009 134 days however this ageing is distorted by one account of £19000 2009 £21000 
which is overdue by 202 days 2009 154 days
ageing of past due but not impaired receivables
2010
£’000
2009
£’000
60–120 days 91 64
121–202 days 19 –
the allowance for doubtful debts has been increased to £103000 by the end of the period 2009 £5000 given the minimal 
receivable balance the directors believe that there is no further credit provision required in excess of the allowance for doubtful 
debts
the allowance for doubtful debts includes £103000 relating to individually impaired trade receivables 2009 £2000 which 
have been placed under liquidation 
18	 cash	 and	 cash	 equivalents
cash and cash equivalents comprise cash held by the group and shortterm bank deposits with associated right of set off with 
an original maturity of three months or less the carrying amount of these assets approximates their fair value a breakdown of 
significant bank and cash balances by currency is as follows
2010
£’000
2009
£’000
sterling 41109 24196
us dollar 331 2901
euro 439 173
total cash and cash equivalents 41879 27270 	 plc	
annual report and financial statements 2010
53
other information review of the business governance financial	 statements
19	 other	 financial	 liabilities
trade and other payables
2010
£’000
2009
£’000
amounts	 falling	 due	 within	 one	 year
trade payables 12489 14577
other payables 3406 8493
accruals and deferred income 9693 7599
25588 30669
trade payables and accruals principally comprise amounts outstanding for trade purchases and ongoing costs the average credit 
period taken for trade purchases is 41 days 2009 46 days no interest is charged on these payables 
the directors consider that the carrying amount of trade payables at 2 october 2010 and 26 september 2009 approximates to 
their fair value on the basis of discounted cash flow analysis
20	bank 	 loans
2010
£’000
2009
£’000
bank loans all sterling 90716 97962
the borrowings are repayable as follows
on demand or within one year 7500 7500
in the second year 7500 7500
in the third to fifth year 76000 83500
91000 98500
less total unamortised issue costs 284 538
90716 97962
less amount due for settlement within 12 months shown under current liabilities 7500 7500
issue costs to be amortised within 12 months 250 250
amount due for settlement after 12 months 83466 90712
the directors consider that the carrying amount of the bank loan at 2 october 2010 and 26 september 2009 approximates to its 
fair value since the amounts relate to floating rate debt
the average weighted interest rates paid on the loan were as follows
2010

2009

loans 26747 39011
the group borrowings are arranged at floating rates thus exposing the group to cash flow interest rate risk
whilst the interest charge on the loan has fallen compared to the prior period the group has seen limited benefit due to the interest 
rate derivatives which negate the majority of any impact on the interest rate movement
the group has one principal bank loan taken out on 1 august 2006 with a balance of £91 million outstanding at the period 
end during the period ended 27 september 2008 the banking facilities were renegotiated with a relaxation of both covenants 
associated with the debt repayments commenced on 28 july 2007 and will continue for an extended period until 28 january 
2012 there was an arrangement fee of £05 million associated with the original loan agreement which is being amortised over 
the original period of the facility an additional fee of £05 million was incurred in a prior period on renegotiation of the loan  
this fee is being amortised over the remaining period of the facility the loan is secured by upstream guarantees provided by 
certain subsidiaries the libor margin shall be adjusted between 15 and 275 dependent on the group’s level of compliance 
with a net debt to ebitda covenant
at 2 october 2010 the group had available £5 million 2009 £5 million of undrawn committed banking facilities 	 plc	
annual report and financial statements 2010
notes	 to	 the	 consolidated	 financial	 statements	 continued
for the 53 week period ended 2 october 2010
54
21	 financial	 instruments
capital risk management
the group manages its capital to ensure that entities in the group will be able to continue as a going concern while maximising 
the return to stakeholders through the optimisation of the debt and equity balance the capital structure of the group consists of 
debt which includes the borrowings disclosed in note 20 cash and cash equivalents disclosed in note 18 and equity attributable to 
equity holders of the parent comprising issued capital reserves and retained earnings as disclosed in notes 23 to 29
significant accounting policies
details of the significant accounting policies and methods adopted including the criteria for recognition the basis of measurement 
and the basis on which income and expenses are recognised in respect of each class of financial asset financial liability and 
equity instrument are disclosed in note 2q to the financial statements
categories of financial instruments
carrying	 value	 and	 fair	 value
2010
£’000
2009
£’000
financial assets
held for trading – 49
loans and receivables including cash and cash equivalents 49473 31326
financial liabilities
held for trading 10557 7826
amortised cost 116304 128631
the group considers itself to be exposed to risks on financial instruments including market risk including currency risk credit risk 
liquidity risk and cash flow interest rate risk 
the group seeks to mitigate the effects of these risks by using derivative financial instruments to hedge these risk exposures 
economically the use of financial derivatives is governed by the group’s policies approved by the board of directors which 
provide written principles on foreign exchange risk interest rate risk credit risk the use of financial derivatives and nonderivative 
financial instruments and the investment of excess liquidity the group does not enter into or trade financial instruments including 
derivative financial instruments for speculative purposes 
market risks
the group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates 
the group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign currency risk 
including 
•  forward foreign exchange contracts to hedge the exchange rate risk arising on the import of goods from south america and 
china and 
• interest rate swaps and collars to mitigate the risk of movements in interest rates
foreign currency risk management
the group undertakes certain transactions denominated in foreign currencies hence exposures to exchange rate fluctuations 
arise exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts 
the carrying amounts of the group’s foreign currency denominated monetary assets and monetary liabilities at the reporting date 
are as follows
assets liabilities
2010
£’000
2009
£’000
2010
£’000
2009
£’000
euro 439 3064 1129 4546
us dollar 331 2923 329 344 	 plc	
annual report and financial statements 2010
55
other information review of the business governance financial	 statements
21	 financial	 instruments	 continued
foreign currency sensitivity analysis 
the group is mainly exposed to the currency of china and brazil us dollar currency and from various european countries euro 
as a result of stock purchases the following table details the group’s sensitivity to a 10 increase and decrease in sterling against 
the relevant foreign currencies 10 represents management’s assessment of the reasonably possible change in foreign exchange 
rates the sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation 
at the period end for a 10 change in foreign currency rates the sensitivity analysis includes external loans as well as loans to 
foreign operations within the group where the denomination of the loan is in a currency other than the currency of the lender or 
the borrower a positive number below indicates an increase in profit and other equity where sterling strengthens 10 against the 
relevant currency
2010
£’000
2009
£’000
profit or loss movement on a 10 strengthening in sterling against the euro 63 135
profit or loss movement on a 10 strengthening in sterling against the us dollar – 234
profit or loss movement on a 10 weakening in sterling against the euro 77 165
profit or loss movement on a 10 weakening in sterling against the us dollar – 287
currency derivatives
the group utilises currency derivatives to hedge significant future transactions and cash flows the group uses foreign currency 
forward contracts in the management of its exchange rate exposures the contracts are denominated in us dollars and euros
at the balance sheet date the total notional amounts of outstanding forward foreign exchange contracts that the group has 
committed to are as below
2010
£’000
2009
£’000
forward foreign exchange contracts 4356 512
these arrangements are designed to address significant exchange exposures for the first half of 201 1 and are renewed on a 
revolving basis as required
at 2 october 2010 the fair value of the group’s currency derivatives is a £22000 asset 2009 an asset of £30000  
these amounts are based on market value of equivalent instruments at the balance sheet date
losses of £4000 are included in operating profit in the year 2009 gains of £95000
interest rate risk management
the group is exposed to interest rate risk as entities in the group borrow funds at floating interest rates the risk is managed by the 
group by maintaining an appropriate mix between fixed and floating rate borrowings by the use of interest rate swap contracts 
and collars the group’s exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk 
management section of this note
interest rate sensitivity analysis
the sensitivity analyses below have been determined based on the exposure to interest rates for both derivatives and non
derivative instruments at the balance sheet date for floating rate liabilities the analysis is prepared assuming the amount of liability 
outstanding at the balance sheet date was outstanding for the whole year a 50 basis points increase or decrease is used when 
reporting interest rate risk internally to key management personnel and represents management’s assessment of the possible change 
in interest rates
if interest rates had been 50 basis points higherlower and all other variables were held constant the group’s profit would be 
impacted as follows
50	 basis	 points	 increase	 in	
interest	 rates
50	 basis	 points	decrease	 in	
interest	 rates
2010
£’000
2009
£’000
2010
£’000
2009
£’000
profit or loss 1443 1248 1385 1219
the group’s sensitivity to interest rates mainly relates to the interest rate derivatives 	 plc	
annual report and financial statements 2010
notes	 to	 the	 consolidated	 financial	 statements	 continued
for the 53 week period ended 2 october 2010
56
21	 financial	 instruments	 continued
interest rate derivatives
the group uses interest rate derivatives to manage its exposure to interest rate movements on its bank borrowings 
the group’s interest rate derivatives comprise
• 5 year interest rate cap with a notional value of £20 million with interest capped at 6
• 5 year interest rate swap with a notional value of £20 million paying interest at a fixed rate of 563
•  10 year cancellable collar with a notional value of £60 million with a cap of 56 and a floor of 449 the interest rate within 
this range is libor less 04 where libor falls below the floor the interest rate resets to a fixed level of 555 
the fair value liability of the swaps entered into at 2 october 2010 is estimated at £10557 000 2009 £7 777 000 amounts of 
£2780000 have been charged to the statement of financial performance in the period 2009 £5833000
credit risk management
credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the group 
management has considered the counterparty risk associated with the cash and derivative balances and do not consider there 
to be a material risk the group has a policy of only dealing with creditworthy counterparties the group’s exposure to its 
counterparties is reviewed periodically trade receivables are minimal consisting of a number of insurance companies and sundry 
trade accounts further information is provided in note 17  
the carrying amount of financial assets recorded in the financial statements which is net of impairment losses represents the 
group’s maximum exposure to credit risk without taking account of the value of any collateral obtained
liquidity risk management
ultimate responsibility for liquidity risk management rests with the board of directors the group manages liquidity risk by 
maintaining adequate reserves banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual 
cash flows and matching the maturity profiles of financial assets and liabilities included in note 20 is a description of additional 
undrawn facilities that the group has at its disposal to reduce liquidity risk further
liquidity and interest risk tables
the following tables detail the group’s remaining contractual maturity for its nonderivative financial liabilities the tables have been 
drawn up based on the undiscounted cash flows and on the assumption that the variable interest rate remains constant at the latest 
fixing level of 274665 2009 259450 of financial liabilities based on the earliest date on which the group can be required 
to pay the table includes both interest and principal cash flows
2010
less	 than		
1	month
£’000
1–3	 months
£’000
3	months 	 to	
	1	year
£’000
1–5	 years
£’000
5	 years
£’000
total
£’000
noninterest bearing 25588 – – – – 25588
variable interest rate instruments 630 418 9290 84266 – 94604
2009
less than  
1 month
£’000
1–3 months
£’000
3 months to 
 1 year
£’000
1–5 years
£’000
5 years
£’000
total
£’000
noninterest bearing 30669 – – – – 30669
variable interest rate instruments – 722 9564 94204 – 104490
the group has access to financing facilities of which the total unused amount is £5 million at the balance sheet date 2009  
£5 million the group expects to meet its other obligations from operating cash flows and proceeds of maturing financial assets 	 plc	
annual report and financial statements 2010
57
other information review of the business governance financial	 statements
21	 financial	 instruments	 continued
liquidity and interest risk tables continued
the following table details the group’s liquidity analysis for its derivative financial instruments the table has been drawn up based 
on the undiscounted net cash inflowsoutflows on the derivative instruments that settle on a net basis and the undiscounted gross 
inflows and outflows on those derivatives that require gross settlement when the amount payable or receivable is not fixed the 
amount disclosed has been determined by reference to the projected interest and foreign currency rates as illustrated by the yield 
curves existing at the reporting date
2010
less	 than		
1	month
£’000
1–3	 months
£’000
3	months 	 to	
	1	year
£’000
1–5	 years
£’000
5	 years
£’000
total
£’000
interest rate swaps payments – 603 1572 6606 2331 11112
foreign exchange forward contracts 
payments – 1933 2423 – – 4356
foreign exchange forward contracts 
receipts – 1928 2450 – – 4378
2009
less than  
1 month
£’000
1–3 months
£’000
3 months to 
 1 year
£’000
1–5 years
£’000
5 years
£’000
total
£’000
interest rate swaps payments – 702 1926 4776 2331 9735
foreign exchange forward contracts 
payments 512 – – – – 512
foreign exchange forward contracts 
receipts 548 – – – – 548
fair value of financial instruments
the fair values of financial assets and financial liabilities are determined as follows
•  foreign currency forward contracts are measured using quoted forward exchange rates and yield curves derived from quoted 
interest rates matching maturities of the contracts
•  interest rate swaps are measured at the present value of future cash flows estimated and discounted based on the applicable 
yield curves derived from quoted interest rates
• interest rate collars are measured using applicable yield curves derived from quoted interest rates and market volatilities
the fair values are therefore categorised as level 2 based on the degree to which the fair value is observable level 2 fair value 
measurements are those derived from inputs other than unadjusted quoted prices in active markets level 1 categorisation that are 
observable for the asset or liability either directly ie as prices or indirectly ie derived from prices 	 plc	
annual report and financial statements 2010
notes	 to	 the	 consolidated	 financial	 statements	 continued
for the 53 week period ended 2 october 2010
58
22	 provisions	 for	 liabilities	 and	 charges
onerous	 lease
provision
£000
dilapidations
provision
£000
total
£000
less than one year 
at 28 september 2008 – – –
additional provision in the period 873 178 1051
at 26 september 2009 873 178 1051
additional provision in the period 118 372 490
utilisation continuing 15 20 35
utilisation discontinued 96 – 96
release of provision in the period 340 56 396
at	2	october 	 2010 540 474 1014
greater than one year
at 28 september 2008 and 26 september 2009 – – –
additional provision in the period 283 – 283
at	2	october 	 2010 283 – 283
total	 provisions	 at	2	october 	 2010 823 474 1297
the onerous lease provision relates to estimated future unavoidable lease costs in respect of closed and nontrading stores  
the provision is expected to be utilised over the following two financial periods the dilapidations provision represents 
management’s best estimate of the group’s liability under its property lease arrangements based on past experience
the following are the deferred tax liabilitiesassets recognised by the group and movements thereon during the current and prior 
reporting period
accelerated	
tax	
depreciation
£’000
tax	 losses
£’000
sharebased	
payments
£’000
exchange	
rate	
differences
£’000
interest	 rate	
hedging
£’000
rent	 free
£’000
total
£’000
at 28 september 2008 3054 215 133 4 545 201 1964
creditcharge to income 633 215 23 5 282 124 16
credit to equity – – 103 – – – 103
at 27 september 2009 2421 – 213 9 263 77 1877
creditcharge to income 86 – 64 1 1174 22 1303
impact of rate change 138 – 2 – 106 1 31
credit to equity – – 121 – – – 121
at	2	october 	 2010 2197 – 396 8 1331 56 422
the finance bill 2010 received royal ascent on 27 july 2010 and included a reduction in the main rate of corporation tax for 
the financial year beginning 1 april 201 1 from 28 to 27 the government has also indicated that it intends to enact future 
reductions in the main corporation tax rate of 1 each year down to 24 by 1 april 2014 the future 1 main corporation tax 
rate reductions are expected to have a similar impact on our financial statements as above however the actual impact will be 
dependent on our deferred tax position at that time 	 plc	
annual report and financial statements 2010
59
other information review of the business governance financial	 statements
23	 calledup	 share	 capital
2010
£’000
2009
£’000
authorised 240000000 2009 240000000 ordinary shares of 333p each 2009 333p 8000 8000
authorised 37 000000 2009 37 000000 redeemable b shares of £054 each 19980 19980
authorised 124890948 2009 124890948 irredeemable c shares of £0001 each 125 125
28105 28105
issued and fullypaid 188202323 2009 171093021 ordinary shares of 333p each 2009 333p 6273 5703
total 6273 5703
the group issued 17 109302 shares as part of a placing and open offer on 27 november 2009 the issue increased the number 
of shares from 171093021 to 188202323 under the arrangements of the placing the company issued shares in exchange 
for shares in tail finance jersey limited no share premium is ultimately recorded in the company’s financial statements through 
the operation of the merger relief provisions of the companies act 2006 the subsequent redemption of these shares gave rise to 
distributable profits of £143 million which have been transferred to retained earnings 
during the period the group issued no 2009 515 ordinary shares with a nominal value of £nil 2009 £17 under share option 
schemes for an aggregate cash consideration of £nil 2009 £330
24	 share	 premium
2010
£’000
2009
£’000
at start of period 1001 1001
shares issued in respect of placing and open offer 14296 –
transfer to retained earnings 14296 –
at end of period 1001 1001
25	merger	reserve
2010
£’000
2009
£’000
at start of period 240 240
release of reserve on disposal of subsidiary 639 –
at end of period 399 240
26	 sharebased	payment	 reserve
2010
£’000
2009
£’000
at start of period 240 322
chargecredit to equity for equitysettled sharebased payments 127 82
at end of period 367 240
27	 capital	 redemption	 reserve
2010
£’000
2009
£’000
at start and end of period 20359 20359
the capital redemption reserve arose on the cancellation of treasury shares and as a result of a share reorganisation in 2006
28	 foreign	 exchange	 reserve
2010
£’000
2009
£’000
at start of period 336 248
exchange differences on consolidation of overseas operations – 88
release of reserve on disposal of subsidiary 336 –
at end of period – 336 	 plc	
annual report and financial statements 2010
60
notes	 to	 the	 consolidated	 financial	 statements	 continued
for the 53 week period ended 2 october 2010
29	 retained	 earnings
£’000
at 28 september 2008 82986
deferred tax on sharesave scheme taken directly to equity 103
net profit for the period 1722
at 27 september 2009 81161
release from merger reserve on disposal of subsidiary 639
transfer from the share premium account 14296
deferred tax on sharesave scheme taken directly to equity 121
net profit for the period 9974
at	2	october 	 2010 56131
the transfer from the share premium account arose from the firm placing and open offer in november 2009 within these 
arrangements the company issued shares in exchange for ordinary shares and redeemable preference shares in tail finance 
jersey limited no share premium is ultimately recorded in the company financial statements through the operation of the merger 
relief provisions of the companies act 2006
the realised gain is taken after the deduction of transaction costs of £05 million principally as a result of commissions and 
professional charges
the subsequent redemption of these shares gave rise to distributable profits of £143 million which have been transferred to 
retained earnings
30	 financial	 commitments
a capital commitments
at the end of the period there were no capital commitments contracted 2009 £nil
b pension arrangements
the group operates separate defined contribution pension schemes for employees the assets of the schemes are held separately 
from those of the group in independently administered funds the pension cost charge represents contributions payable by the 
group to the funds and amounted to £181000 2009 £186000
c lease commitments
the group has entered into non cancellable operating leases in respect of motor vehicles equipment and land and buildings
minimum lease payments under operating leases recognised as an expense for the period were £20861000 which includes 
property service charges of £649000 2009 £20730000 including property service charges of £542000 
at the balance sheet date the group had outstanding commitments for future minimum lease payments under noncancellable 
operating leases which fall due as follows
2010 2009
land	 and	
buildings
£’000
other
£’000
land and 
buildings
£’000
other
£’000
– within 1 year 17908 1014 17124 881
– within 2–5 years 58796 1922 57497 1478
– after 5 years 63027 80 60396 193
139731 3016 135017 2552
operating lease payments primarily represent rentals payable by the group for certain of its office and store properties leases are 
negotiated for an average term of 15 years and rentals are fixed for an average of 5 years 2009 same 	 plc	
annual report and financial statements 2010
61
other information review of the business governance financial	 statements
31	 sharebased	payments
the group operates three share option schemes in relation to group employees 
equitysettled share option scheme
options are exercisable at the middle market closing price for the working day prior to the date of grant and are exercisable three 
years from the date of grant if the employee is still employed by the group at that date
details of the share options outstanding during the period are as follows
no	 of	 options	 outstanding
option	 price
exercisable	
period 2010 2009
26 january 2001 54p 7	years 78020 81520
12 february 2002 54p 7	years 40779 40779
118799 122299
movements in share options are summarised as follows
2010
number	 of	
share	 options
2010	
weighted	
average	
exercise	 price
£
2009
 number of 
share options
2009 
weighted 
average 
exercise price
£
outstanding at beginning of period 122299 054 149299 054
expired during the period 3500 054 27000 054
outstanding at end of period 118799 054 122299 054
exercisable at end of period 118799 054 122299 054
the options outstanding at 2 october 2010 had a weighted averaged exercise price of 54p 2009 54p and a weighted average 
remaining contractual life of one year 2009 two years
other sharebased payment plans
employee share purchase plans are open to almost all employees and provide for a purchase price equal to the daily average 
market price on the date of grant less 20 the shares can be purchased during a twoweek period each financial period  
the shares so purchased are generally placed in the employee share savings plan for a three or five year period
movements in sharebased payment plan options are summarised as follows
2010
number	 of	
share	 options
2010	
weighted	
average	
exercise	 price
2009
 number of 
share options
2009 
weighted 
average 
exercise price
outstanding at beginning of period 5974783 19p 717635 135p
issued during the period – – 5963943 17p
expired during the period – – 706795 135p
exercised during the period 521836 19p – –
outstanding at end of period 5452947 19p 5974783 19p
exercisable at end of period 5452947 19p 5974783 19p
the inputs to the blackscholes model for the above two schemes are as follows
2010 2009
weighted average share price  – pence 226 243
weighted average exercise price – pence 181 194
expected volatility –  324 1146
expected life – years 3	or	5 3 or 5
risk – free rate of interest –  08 29
dividend yield –  504 47
expected volatility was determined by calculating the historical volatility of the group’s share price over the 200910 financial 
period 2009 200809 financial period the expected risk used in the model has been adjusted based on management’s best 
estimate for the effects of nontransferability exercise restrictions and behavioural forces 	 plc	
annual report and financial statements 2010
notes	 to	 the	 consolidated	 financial	 statements	 continued
for the 53 week period ended 2 october 2010
62
31	 sharebased	payments	 continued
deferred bonus longterm incentive plan
at the agm in january 2010 a new deferred bonus longterm incentive plan ltip was approved by shareholders under this long 
term incentive plan a proportion of the annual bonus is deferred in the form of shares for a two year period with a matching share 
award that vests at the end of two years subject to the achievement of performance conditions 25 of the annual bonus has been 
deferred into shares on a net basis for a two year period with a further match on a gross basis which vests two years later subject 
to the achievement of performance conditions relating to continued employment in the business and ebitda earnings growth 
measured over the two year period
for the period ending 2 october 2010 it was determined that a bonus be paid equivalent to 50 of basic salary for executive 
directors and the members of the senior management team 25 of the annual bonus will be deferred under the deferred bonus 
long term incentive plan the total number of shares due to be awarded is 129489 the fair value of these deferred shares as at  
2 october 2010 was £79000
the total number of matching shares that are expected to be awarded subject to fulfilment of the performance conditions  
is 242144
the inputs to the blackscholes model are as follows
2010 2009
weighted average share price   – pence 600 –
weighted average exercise price  – pence – –
expected volatility   –  816 –
expected life  – years 2 –
risk – free rate of interest  –  08 –
dividend yield  –  0 –
expected volatility was determined by calculating the historical volatility of the group’s share price over the 200809 and 
200910 financial periods 2009 200809 financial period the expected risk used in the model has been adjusted based on 
management’s best estimate for the effects of nontransferability exercise restrictions and behavioural forces
in total the group recognised a total expense of £127 000 2009 £82000 income relating to sharebased payments
32	 related	 party	 transactions
skm williams has the nonstatutory role of president advising on property matters and is a related party by virtue of his 106 
shareholding 19903950 ordinary shares in the group’s issued share capital 2009 1 14 shareholding of 19503950 ordinary 
shares
at 2 october 2010 skm williams was the landlord of three properties leased to multi tile limited a trading subsidiary of  
topps tiles plc for £134000 2009 £84000 per annum
no amounts were outstanding at 2 october 2010 2009 £nil
the lease agreements on both properties are operated on commercial arms length terms his salary for the year in his role as 
president was £41000 2009 £40000
transactions between the company and its subsidiaries which are related parties have been eliminated on consolidation and are 
not disclosed in this note 
the remuneration of the board of directors who are considered key management personnel of the group was £14 million 2009 
£10 million further information about the remuneration of the individual directors is provided in the remuneration report on 
pages 27 to 29
33	 events	after	the 	 balance	 sheet	 date
on 19 october 2010 the group issued a letter of intent to herbert baggley construction limited detailing its intention to enter into 
a formal contract for the construction of a new warehouse facility at grove park the cost of construction is estimated to be  
£3 million 	 plc	
annual report and financial statements 2010
63
other information review of the business governance financial	 statements
we have audited the parent company financial statements of topps tiles plc for the period ended 2 october 2010 which 
comprise the company balance sheet and the related notes 1 to 7  the financial reporting framework that has been applied in 
their preparation is applicable law and united kingdom accounting standards united kingdom generally accepted accounting 
practice
this report is made solely to the company’s members as a body in accordance with chapter 3 of part 16 of the companies act 
2006 our audit work has been undertaken so that we might state to the company’s members those matters we are required to 
state to them in an auditors’ report and for no other purpose to the fullest extent permitted by law we do not accept or assume 
responsibility to anyone other than the company and the company’s members as a body for our audit work for this report or for 
the opinions we have formed
respective	 responsibilities	 of	 directors	 and	 auditors
as explained more fully in the directors’ responsibility statement the directors are responsible for the preparation of the parent 
company financial statements and for being satisfied that they give a true and fair view our responsibility is to audit the parent 
company financial statements in accordance with applicable law and international standards on auditing uk and ireland  
those standards require us to comply with the auditing practices board’s apb’s ethical standards for auditors
scope	 of	 the	 audit	 of	 the	 financial	statements
an audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material misstatement whether caused by fraud or error this includes an 
assessment of whether the accounting policies are appropriate to the parent company’s circumstances and have been consistently 
applied and adequately disclosed the reasonableness of significant accounting estimates made by the directors and the overall 
presentation of the financial statements
opinion	 on	 financial	statements
in our opinion the parent company financial statements
• give a true and fair view of the state of the parent company’s affairs as at 2 october 2010
• have been properly prepared in accordance with united kingdom generally accepted accounting practice and
• have been prepared in accordance with the requirements of the companies act 2006
opinion	 on	 other	 matters	 prescribed	 by	 the	 companies	 act	2006
in our opinion
•  the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the companies act 
2006 and
•  the information given in the directors’ report for the financial period for which the financial statements are prepared is consistent 
with the parent company financial statements
matters	 on	 which	 we	 are	 required	 to	 report	 by	 exception
we have nothing to report in respect of the following matters where the companies act 2006 requires us to report to you if in our 
opinion
•  adequate accounting records have not been kept by the parent company or returns adequate for our audit have not been 
received from branches not visited by us or
•  the parent company financial statements and the part of the directors’ remuneration report to be audited are not in agreement 
with the accounting records and returns or
• certain disclosures of directors’ remuneration specified by law are not made or
• we have not received all the information and explanations we require for our audit
other	 matter
we have reported separately on the group financial statements of topps tiles plc for the period ended 2 october 2010
sharon	 fraser	 senior	 statutory	 auditor
for and on behalf of deloitte llp 
chartered accountants and statutory auditors  
manchester united kingdom
29 november 2010
independent	 auditors’	 report	 to	 the	 members	 of	 topps	 tiles	 plc 	 plc	
annual report and financial statements 2010
64
notes
2010
£’000
2009
£’000
fixed	 assets
investments 3 2801 2763
2801 2763
current	 assets
debtors due within one year 4 630 1710
debtors due after one year 4 221200 221200
cash at bank and in hand 29139 12655
250969 235565
creditors amounts falling due within one year 5 1390 1161
net	 current	 assets 249579 234404
net	 assets 252380 237167
capital	 and	 reserves
calledup share capital 6 6273 5703
share premium 7 1001 1001
sharebased payment reserve 7 323 240
merger reserve 7 – 639
capital redemption reserve 7 20359 20359
other reserve 7 6200 6200
profit and loss account 7 218224 203025
equity	 shareholders’	 funds	 252380 237167
the financial statements of topps tiles plc companies house number 3213782 were approved by the board of directors on  
29 november 2010 and signed on its behalf by
mtm	 williams	 r 	 parker
director director
company	 balance	 sheet	
as at 2 october 2010 	 plc	
annual report and financial statements 2010
65
other information review of the business governance financial	 statements
1	basis 	 of	 accounting
the separate financial statements of the company are presented as required by the companies act 2006 they have been 
prepared under the historical cost convention and in accordance with united kingdom accounting standards and law
based on a detailed review of the risks and uncertainties see page 1 1 of the business review management’s latest revised 
forecasts a range of sensitised scenarios and the current banking facilities the board has at the time of approving the financial 
statements a reasonable expectation that the group will continue to meet all of its financial commitments as they fall due and will 
be able to continue as a going concern 
the board therefore considers it appropriate to prepare the financial statements on the going concern basis 
the principal accounting policies are summarised below they have all been applied consistently throughout the year and the 
preceding year
the company issues equitysettled sharebased payments to certain employees equitysettled sharebased payments are measured 
at fair value at the date of grant the credit subtracted from the cost of investment in those subsidiaries whose employees receive the 
benefit of the share options is £38000 2009 charge of £82000 in respect of the deferred longterm bonus incentive plan the 
sharebased payment charge within the company is £45000 in respect of the deferred share award
fixed asset investments are shown at cost less provision for impairment
the company has taken advantage of the exemption in frs 8 from disclosing transactions with other members of the group and 
the exemption in frs 29 for making disclosures relating to financial instruments 
2	profit 	 for	 the	 year
as permitted by section 408 of the companies act 2006 the company has elected not to present its own profit and loss account 
for the period topps tiles plc reported a retained profit for the financial period ended 2 october 2010 of £264000 2009 
£4432000 loss
the auditors’ remuneration for services to the company was £40000 for audit related work 2009 £44000 for audit related 
work fees relating to nonaudit work totalled £nil 2009 £222000 see note 6 to the group financial statements for further 
details
the company had no other employees other than the directors 2009 same whose remuneration is detailed on page 29
3	fixed 	 asset	investments
shares
£’000
at 27 september 2009 2763
movement in share options granted to employees 38
at	2	october 	 2010 2801
the company has investments in the following subsidiaries which principally affected the profits or net assets of the group  
to avoid a statement of excessive length details of investments which are not significant have been omitted
subsidiary undertaking  of issued shares held principal activity
topalpha limited 100 property management and investment
multi tile limited 100 retail and wholesale of ceramic tiles wood flooring and related products
topps tiles holdings 100 intermediate holding company
topps tiles uk limited 100 retail and wholesale of ceramic tiles wood flooring and related products
topps tiles distribution ltd 100 wholesale and distribution of ceramic tiles wood flooring and related 
products
topps tiles holdings bv 100 retail and wholesale of ceramic tiles wood flooring and related products
held directly by topps tiles plc
the investments are represented by ordinary shares
all undertakings are incorporated in great britain and are registered and operate in england and wales except for topps tiles 
holdings bv which is registered and incorporated in the netherlands a subsidiary of topps tiles holdings bv topps tiles retail 
bv was placed into administration during the period
notes	 to	 the	 company	 financial	 statements 66
	 plc	
annual report and financial statements 2010
notes	 to	 the	 company	 financial	 statements	 continued
4	debtors
2010
£’000
2009
£’000
amounts falling due within one year
amounts owed by subsidiary undertakings – 1677
other debtors 12 –
prepayments and accrued income 618 33
630 1710
amounts falling due after one year
amounts owed by subsidiary undertaking 221200 221200
in respect of the deferred bonus share award a deferred tax asset has not been recognised as it is probable that there will be 
insufficient suitable profits arising when the shares are awarded against which to relieve the deduction
5	creditors 	 amounts	 falling	 due	 within	 one	 year
2010
£’000
2009
£’000
trade and other creditors 12 61
amounts owed to subsidiary undertakings 253 240
accruals and deferred income 1125 860
1390 1161
6	called 	 up	 share	 capital
2010
£’000
2009
£’000
authorised 240000000 2009 240000000 ordinary shares of 333p each 2009 333p 8000 8000
authorised 37 000000 2009 37 000000 redeemable b shares of £054 each 19980 19980
authorised 124890948 2009 124890948 irredeemable c shares of £0001 each 125 125
28105 28105
issued and fullypaid 188202323 2009 171093021 ordinary shares  
of 333p each 2009 333p 6273 5703
during the period the group allotted no 2009 515 ordinary shares with a nominal value of £nil 2009 £17 under share option 
schemes for an aggregate cash consideration of £nil 2009 £330 the group issued 17 109302 shares as part of a placing  
and open offer 2009 nil the issue increased the number of shares from 171093021 to 188202323
7	reserves
company
share
capital
£’000
share
premium
£’000
share
based
payment
reserve
£’000
merger
reserve
£’000
capital
redemption
reserve
£’000
other
reserves
£’000
profit
and	 loss
account
£’000
total
£’000
at 27 september 2009 5703 1001 240 639 20359 6200 203025 237167
profit for the period –––––– 264 264
shares issued in respect of placing 
and open offer 570 14296 ––––– 14866
transfer to retained earnings – 14296 –––– 14296 –
credit to equity for equitysettled 
share based payments –– 83 –––– 83
release of reserve on disposal of 
subsidiary ––– 639 –– 639 –
at	2	october 	 2010 6273 1001 323 – 20359 6200 218224 252380
at 2 october 2010 the directors consider the other reserve of £6200000 to remain non distributable 
the directors consider £203106000 of profit and loss account reserves not to be distributable at 2 october 2010 this arose  
on an unrealised gain on the intragroup disposal of subsidiary companies 67
review of the business governance
	 plc	
annual report and financial statements 2010
other	 information financial statements
	 plc	
annual report and financial statements 2010
unaudited
52 weeks
ended
30 september
 2006
£’000
52 weeks
ended
29 september
 2007
£’000
52 weeks
ended
27 september
 2008
£’000
52 weeks 
ended 
26 september
2009
£’000
53	 weeks	
ended	
2	october 	
2010
£’000
group revenue 180180 207898 208084 186061 183420
group operating profit 38869 44342 34620 16425 20899
profit before taxation 39064 37833 27723 4904 13397
shareholders’ deficit 63600 54824 55113 53282 28530
basic earnings per share 1280p 1509p 956p 100p 537p
dividend per share 1040p 1070p 300p – –
dividend cover 141 141 319 – –
average number of employees 1582 1722 1743 1625 1615
share price period end 2590p 1968p 5825p 9441p 600p
all figures quoted are inclusive of continued and discontinued operations
five	 year	 record	 68
	 plc	
annual report and financial statements 2010
notice is hereby given that the annual general meeting of topps tiles plc the “company” will be held at topps tiles plc 
thorpe way grove park enderby leicestershire le19 1su on 1 1 january 201 1 at 1030am for the following purposes
ordinary	 business
1  to receive and adopt the company’s annual report and financial statements for the financial period ended 2 october 2010 
together with the last directors’ report the last directors’ remuneration report and the auditors’ report on those accounts and 
the auditable part of the directors’ remuneration report
2 to declare a final dividend of 1p per ordinary share on the ordinary shares for the period
3 to reelect barry bester as a director of the company
4 to reelect matthew williams as a director of the company
5 to reelect robert parker as a director of the company
6 to reelect nicholas ounstead as a director of the company
7 to reelect the rt hon michael jack as a director of the company
8 to reelect alan white as a director of the company
9  to reappoint deloitte llp as auditors to hold office from the conclusion of the meeting to the conclusion of the next meeting at 
which the annual report and financial statements are laid before the company at a remuneration to be determined by the 
directors
10  to approve the directors’ remuneration report for the financial period ended 2 october 2010 as set out in the annual report 
and financial statements for that period
special	 business
to consider and if thought fit to pass the resolutions set out below which in the case of resolutions 1 1 and 15 will be proposed as 
ordinary resolutions and in the case of resolutions 12 to 14 will be proposed as special resolutions
11  that the directors of the company be generally and unconditionally authorised for the purposes of and pursuant to section 
551 of the companies act 2006 the “2006 act” to allot relevant securities as defined in the explanatory notes to this 
resolution up to an aggregate nominal amount of £2086957 provided that this authority shall unless renewed varied or 
revoked by the company expire 15 months from the passing of this resolution or if earlier on the date of the next annual 
general meeting of the company save that the company may before such expiry make offers or agreements which would 
or might require relevant securities to be allotted and the directors may allot relevant securities in pursuance of such offer or 
agreement notwithstanding that the authority conferred by this resolution has expired
12  that subject to the passing of resolution 1 1 above the directors of the company be given the general power to allot equity 
securities as defined by section 560 of the 2006 act for cash either pursuant to the authority conferred by resolution 1 1 or 
by way of a sale of treasury shares as if section 5611 of the 2006 act did not apply to any such allotment provided that this 
power shall be limited to
 a  the allotment of equity securities pursuant to a rights issue or similar offer to ordinary shareholders where the equity 
securities respectively attributable to the interests of all ordinary shareholders are proportionate or as nearly as practical 
and taking into account any prohibitions against or difficulties concerning the making of an offer of allotment to 
shareholders whose registered address or place of residence is overseas and subject to such exclusions as the directors 
of the company may deem necessary or expedient to deal with fractional entitlement or record dates to the respective 
numbers of ordinary shares held by them and
 b  the allotment otherwise than pursuant to paragraph a above of equity securities up to an aggregate nominal amount of 
the greater of £313357 or 5 of the issued share capital of the company
    the power granted by this resolution will expire 15 months from the passing of this resolution or if earlier the conclusion of 
the company’s next annual general meeting unless renewed varied or revoked by the company prior to or on such date 
save that the company may before such expiry make offers or agreements which would or might require equity securities 
to be allotted after such expiry and the directors may allot equity securities in pursuance of any such offer or agreement 
notwithstanding that the power conferred by this resolution has expired
13  that the company be generally and unconditionally authorised for the purposes of section 701 of the 2006 act to make 
market purchases within the meaning of section 6934 of the 2006 act of ordinary shares of 31∕
³
p each in the capital of the 
company “ordinary shares” provided that
 a  the maximum number of ordinary shares hereby authorised to be purchased is 28042146 representing 149 of the 
company’s issued ordinary share capital
 b the minimum price exclusive of any expenses which may be paid for an ordinary share is 31∕
³
p 
 c  the maximum price exclusive of any expenses which may be paid for an ordinary share is an amount equal to 105 of 
the average of the middle market quotations for an ordinary share derived from the london stock exchange daily official 
list for the five business days immediately preceding the date on which such ordinary share is contracted to be purchased
 d  unless previously renewed varied or revoked the authority conferred shall expire at the close of the next annual general 
meeting of the company or 12 months from the date of this resolution if earlier and
notice	 of	 annual	 general	 meeting	 69
review of the business governance
	 plc	
annual report and financial statements 2010
other	 information financial statements
 e  the company may make a contract for the purchase of ordinary shares under this authority before the expiry of this 
authority which would or might require to be executed wholly or partly after the expiry of such authority and may make 
purchases of ordinary shares in pursuance of such a contract as if such authority had not expired
14 that a general meeting other than an annual general meeting may be called on not less than 14 clear days’ notice
15 that
  a  the rules of the topps tiles plc share incentive plan “the sip” the principal features of which are summarised in the 
explanatory notes to the notice of annual general meeting a draft of which is produced to the meeting and initialled by 
the chairman for the purposes of identification be and are approved and adopted and the directors of the company be 
and are authorised to make such amendments to the sip as may be necessary to obtain formal approval from hmrc of the 
sip and to do all things necessary or expedient to carry the sip into effect and
 b  the directors be and are authorised to adopt equivalent plans for the employees of the company and its subsidiaries in 
overseas jurisdictions subject to such modifications as the directors shall consider appropriate to take into account local tax 
exchange control securities law and other regulatory requirements provided that the shares made available under such 
equivalent plans are treated as counting towards the limits on participation in the sip
notes
1  the right to vote at the meeting is determined by reference to the register of members only those members registered in the 
register of members of the company as at 600pm on 9 january 201 1 being 48 hours before the time for holding the meeting 
or in the event that the meeting is adjourned in the register of members 48 hours before the time of any adjourned meeting 
shall be entitled to attend or vote at the meeting in respect of the number of shares registered in their name at that time 
changes to entries in the register of members after 600pm on 9 january 201 1 or in the event that the meeting is adjourned 
after 48 hours before the time of any adjourned meeting shall be disregarded in determining the rights of any person to attend 
or vote at the meeting
2  a member is entitled to appoint one or more persons as proxies to exercise all or any of his rights to attend speak and vote 
at the meeting a proxy need not be a member of the company a form of proxy is enclosed and notes for completion can 
be found on the form and should be read carefully before it is completed to be valid the form of proxy must be completed 
signed and sent to the offices of the company’s registrars capita registrars pxs the registry 34 beckenham road 
beckenham kent br3 4tu together with the power of attorney or other authority if any under which it is signed or a notarially 
certified or office copy of the same so as to arrive no later than 1030am on 9 january 201 1 or in the event that the meeting 
is adjourned no later than 48 hours before the time of any adjourned meeting
3  a member may appoint more than one proxy in relation to the meeting provided that each proxy is appointed to exercise the 
rights attached to a different share or shares held by him or her to appoint more than one proxy you will need to complete a 
separate proxy form in relation to each appointment you may photocopy the enclosed proxy form indicating clearly on each 
proxy form the name of the proxy you wish to appoint and the number of shares in relation to which the proxy is appointed 
all forms must be signed and should be returned together in the same envelope you can only appoint a proxy using the 
procedures set out in these notes and the notes to the proxy form the right of a member under section 324 of the companies 
act 2006 “2006 act” to appoint a proxy does not apply to a person nominated to enjoy information rights under section 146 
of the 2006 act
4  the appointment of a proxy will not preclude a member from attending and voting in person at the meeting if he or she so 
wishes
5  as at the close of business on the date of this notice the company’s issued share capital comprised 188202323 ordinary 
shares of 31∕
³
p each each ordinary share carries the right to one vote at a general meeting of the company
6  a vote withheld is not a vote in law which means that the vote will not be counted in the calculation of votes for or against the 
resolution if no voting indication is given your proxy will vote or abstain from voting at his or her discretion your proxy will 
vote or abstain from voting as he or she thinks fit in relation to any other matter which is put before the meeting the notes to 
the proxy form explain how to direct your proxy to vote on each resolution or withhold their vote
7  in the case of joint holders where more than one joint holders purports to appoint a proxy only the appointment submitted by 
the most senior holder will be accepted seniority is determined by the order in which the names of the joint holders appear in 
the company’s register of members in respect of the joint holding the first named being the most senior 70
	 plc	
annual report and financial statements 2010
notice	 of	 annual	 general	 meeting	 continued
8  crest members who wish to appoint a proxy or proxies through the crest electronic proxy appointment service may do so 
by using the procedures described in the crest manual crest personal members or other crest sponsored members and 
those crest members who have appointed a voting service providers should refer to their crest sponsor or voting service 
providers who will be able to take the appropriate action on their behalf
9  in order for a proxy appointment or instruction made using the crest service to be valid the appropriate crest message 
a “crest proxy instruction” must be properly authenticated in accordance with euroclear uk  ireland limited formerly 
crestco’s specifications and must contain the information required for such instructions as described in the crest manual 
the message regardless of whether it constitutes the appointment of a proxy or an amendment to the instruction given to a 
previously appointed proxy must in order to be valid be transmitted so as to be received by the issuers’ agent id ra10 by 
the latest time for receipt of proxy appointments specified in this notice for this purpose the time of receipt will be taken to be 
the time as determined by the timestamp applied to the message by the crest applications host from which the registrars are 
able to retrieve the message by enquiry to crest in the manner prescribed by crest after this time any change of instructions 
to proxies appointed through crest should be communicated to the appointee through other means crest members and 
where applicable their crest sponsors or voting service providers should note that euroclear uk  ireland limited does not 
make available special procedures in crest for any particular messages normal system timings and limitations will therefore 
apply in relation to the input of crest proxy instructions it is the responsibility of the crest member concerned to take or 
if the crest member is a crest personal member or sponsored member or has appointed a voting service providers to 
procure that his crest sponsor or voting service providers takes such action as shall be necessary to ensure that a message 
is transmitted by means of the crest system by any particular time in this connection crest members and where applicable 
their crest sponsors or voting service providers are referred in particular to those sections of the crest manual concerning 
practical limitations of the crest system and timings
10  the company may treat as invalid a crest proxy instruction in the circumstances set out in regulation 355a of the 
uncertificated securities regulations 2001
11  where a copy of this notice is being received by a person who has been nominated to enjoy information rights under section 
146 of the 2006 act “nominee”
 a  the nominee may have a right under an agreement between the nominee and the member by whom he was appointed to 
be appointed or to have someone else appointed as a proxy for the meeting or
 b  if the nominee does not have any such right or does not wish to exercise such right the nominee may have a right under any 
such agreement to give instructions to the member as to the exercise of voting rights
12  capita registrars maintain the company’s share register they also provide a telephone helpline service on 0871 664 0300 
calls cost 10p a minute plus network extras lines are open from 830am to 530pm monday to friday if you have any 
queries about voting or about your shareholding please contact capita registrars
13  members have the right to ask questions at the meeting in accordance with section 319a of the 2006 act
14  the following documents are available for inspection by members at the registered office of the company except bank 
holidays during the normal business hours and at the place of the meeting not less than 15 minutes prior to and during the 
meeting
 a the register of directors’ interests required to be kept under section 809 of the 2006 act and
 b copies of the directors’ service contracts and
 c the proposed rules of the sip to be approved pursuant to resolution 15
15  information regarding the agm including the informants required by section 31 1a of the 2006 act is available from the 
company’s website – wwwtoppstilescouk
r	 parker	 	 		registered 	 office	 	 		registered 	 no
company secretary   thorpe way     3213782 
29 november 2010   grove park 
      enderby 
      leicestershire le19 1su 71
review of the business governance
	 plc	
annual report and financial statements 2010
other	 information financial statements
the annual general meeting of the company will be held at the company’s premises at thorpe way grove park enderby 
leicestershire le19 1su on 1 1 january 201 1 at 1030am
four of the resolutions are to be taken at this year’s annual general meeting as special business by way of explanation of these 
and certain other resolutions
ordinary	 business
resolution 2
declaration of final dividend
a final dividend of 1p per ordinary share is recommended by the directors for payment to shareholders on the register of 
members of the company at the close of business on 31 december 2010 subject to approval by the ordinary shareholders at the 
annual general meeting the dividend will be paid on 31 january 201 1 no interim dividend was declared which means the total 
dividend level will be 1p per ordinary share for the 52 weeks prior to 2 october 2010
resolutions 3 to 8
reelection of directors
the company’s articles of association require that all members of the board of directors submit themselves for reelection at least 
every three years with the exception of the rt hon jm jack who has served for at least nine years and therefore retires and 
offers himself for reelection annually nicholas ounstead and matthew williams are the directors retiring by rotation this year and 
they offer themselves for reelection although not required by the company’s articles each of the remaining directors will in the 
interests of good corporate governance retire voluntarily and offer himself for reelection brief biographical details about all the 
directors appear on page 20 of the annual report and financial statements
special	 business
resolution 1 1
appointment of authority to issue shares
the right of the directors to allot further shares in the capital of the company requires in most cases the prior authorisation of the 
shareholders in general meeting under section 551 of the companies act 2006 “the 2006 act” resolution 1 1 will be put to 
members as special business to authorise the directors to allot ordinary shares with a nominal value of £2086957 out of the 
company’s unissued share capital representing approximately 333 of the company’s current issued share capital excluding 
shares held in treasury the company currently holds nil ordinary shares in treasury the directors have no current intention 
of exercising the authority contained in resolution 1 1 to allot further shares the authority shall expire immediately following the 
annual general meeting next following the resolution or if earlier 15 months following the resolution being passed
relevant securities means
•  shares in the company other than shares allotted pursuant to an employee share scheme as defined by section 1 166 of the 
2006 act a right to subscribe for shares in the company where the grant of the right itself constituted a relevant security or a 
right to convert securities into shares in the company where the grant of the right itself constituted a relevant security
•  any right to subscribe for or to convert any security into shares in the company other than rights to subscribe for or convert any 
security into shares allotted pursuant to an employee share scheme as defined by section 1 166 of the 2006 act references to 
the allotment of relevant securities in the resolution include the grant of such rights
resolution 12
disapplication of statutory rights of preemption
this proposed resolution seeks to obtain power under section 571 of the 2006 act to enable the directors to allot for cash shares 
with an aggregate nominal value of £313357 equal to approximately 5 of the company’s current issued share capital without 
being required first to offer such securities to existing shareholders the company will thereby be given greater flexibility when 
considering future opportunities but the interests of existing shareholders will be protected as except in the case of a rights issue or 
the allotment of shares under the company’s share option schemes the directors have no present intention to exercise its authority 
under this resolution to allot any part of the unissued share capital of the company or without the prior approval of the company 
in general meeting to make any issue which would effectively alter the control of the company or the nature of its business  
this authority will expire immediately following the annual general meeting next following the resolution or if earlier 15 months 
following the resolution being passed
explanatory	 notes	 to	 the	 notice	 of	 annual	 general	 meeting 72
	 plc	
annual report and financial statements 2010
explanatory	 notes	 to	 the	 notice	 of	 annual	 general	 meeting	
continued
resolution 13
authority to purchase ordinary shares
at the annual general meeting ordinary shareholders are being invited under resolution 13 to grant authority to the company to 
make market purchases of its ordinary shares it is proposed such authority shall expire on the conclusion of the annual general 
meeting to be held in 2012 or 12 months from the date of this resolution if earlier this authority will be limited to the purchase of 
not more than 149 of the ordinary shares currently in issue this represents the maximum amount of ordinary share capital in 
issue which is permitted before tender or partial offer to all shareholders is required to be made to perform any share buyback 
the maximum price payable under this authority will be 105 of the average of the middle market quotations of an ordinary 
share for the five business days before the relevant purchase and the minimum price will be 31∕
³
p per ordinary share 
in considering whether or not to purchase ordinary shares under the market purchase authority the directors will take into account 
cash resources the effect on gearing and other investment opportunities before exercising the authority in addition the company 
will only exercise the authority to make such a purchase in the market when the directors consider it is in the best interests of the 
shareholders generally to do so and it should result in an increase in earnings per ordinary share as at 30 november 2010 
there were options to subscribe for 3571746 equity shares outstanding under various schemes representing approximately 296 
of the current issued share capital of the company if the authority sought by resolution 13 was exercised in full the number of 
outstanding options would represent approximately 348 of the issued share capital following the repurchase of shares
resolution 14
notice period for general meetings
this resolution is required to reflect the implementation in august 2009 of the shareholder rights directive the regulation 
implementing this directive increased the notice period for general meetings of the company to 21 days previously the company 
was able to call general meetings other than an agm on 14 clear days’ notice and would like to preserve this ability going 
forward in order to be able to do so shareholders must approve the calling of meetings on 14 days’ notice resolution 14 seeks 
such approval the approval will be effective until the company’s next annual general meeting when it is intended that a similar 
resolution will be proposed the company will also need to meet the requirements for electronic voting under the directive before it 
can call a general meeting on 14 days’ notice
resolution 15
share incentive plan
resolution 15 proposes that the topps tiles plc share incentive plan the “sip” be adopted a copy of the draft rules and trust 
deed is available for inspection at the company’s registered office the resolution also asks shareholders to authorise the directors 
to make such amendments to the draft sip documentation as may be necessary to obtain formal approval of the sip from hmrc 
this summary outlines the main features of the sip a more detailed summary of the principal features of the sip is set out in the 
appendix to the notice of annual general meeting 
the sip is a flexible share incentive plan which has been drafted to meet hm revenue  customs “hmrc” approval requirements 
thus enabling all eligible uk employees of the company to acquire shares in a tax efficient manner 
by participating in the sip employees are entitled to invest in “partnership shares” which would be purchased or subscribed for 
on their behalf by the trustee of a uk resident trust using contributions from their gross salary ie before the deduction of income 
tax and national insurance contributions the company may also award “matching shares” in a prescribed ratio in relation 
to each partnership share acquired under the sip the company may award “free shares” to participants that may be made 
subject to the achievement of performance conditions all shares acquired under the sip are held within the trust the maximum tax 
advantages are available after five years when shares may be withdrawn without any liability to income tax or national insurance 
contributions 
it is proposed that only partnership shares would be offered at the initial launch of the sip and that shares to satisfy those awards 
would be purchased in the market by the trustee of the sip trust
the sip may be extended to overseas employees of the company and its subsidiaries subject to such modifications as the directors 
shall consider appropriate to take into account local tax exchange control securities law and other regulatory requirements 73
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	 plc	
annual report and financial statements 2010
other	 information financial statements
the principal features of the topps tiles plc share incentive plan the “sip” are outlined below
purpose
the purpose of the sip is to provide uk resident employees of the company and its subsidiaries with an opportunity to acquire 
ordinary shares “shares” in the company on a taxefficient basis 
the sip is intended to be a share incentive plan approved by hm revenue and customs “hmrc” in accordance with schedule 2 
to itepa 2003 “schedule 2”
administration
the sip shall be administered by the remuneration committee of the company “committee” with the assistance of a professional 
sip administrator appointed by the board the sip will be operated through a uk resident trust the “trust” the trust will subscribe 
for or purchase in the market the shares that are awarded to employees under the sip
eligibility
all uk resident employees of the company and its participating subsidiaries must be offered the opportunity to participate in the 
sip on the same terms the committee can require employees to have completed a minimum qualifying period of employment 
before they can participate but that period must not exceed eighteen months before the first award is made where the company 
does not operate an accumulation period see below if the company does decide to operate an accumulation period the 
qualifying period of employment must not exceed six months before the accumulation period starts other employees may be 
permitted to participate at the committee’s discretion
it is intended that the first invitations to apply for awards under the sip will be made to all eligible executive directors and 
employees who have completed 13 weeks’ service with the company at the date invitations to participate are issued thereafter 
the committee will determine the basis upon which any future invitations will be issued
shares to be acquired
under the sip employees may be invited to invest in “partnership shares” and may be awarded “matching” andor “free shares” 
in a potentially taxefficient manner the company may offer different combinations of awards as it considers best suits its business 
requirements from time to time 
the sip provides for employees to acquire partnership shares by way of deduction from their gross salary up to a maximum  
of £1500 per tax year or if lower 10 of their salary the committee may specify a lower limit in relation to awards from time  
to time
the amounts must be invested in the sip on behalf of the participants within 30 days of their deduction from salary or alternatively 
accumulated over a period of not more than 12 months “accumulation period” and then invested
the committee can award up to two free matching shares for each partnership share acquired equivalent to a maximum of 
£3000 per annum 
in addition the committee can give up to £3000 worth of free shares per annum per employee and can use free shares to 
reward employees for reaching team or divisional performance targets provided such targets are established in accordance with 
the sip legislation
it is intended that initially employees will be invited to acquire partnership shares only with no accumulation period 
holding periods 
partnership shares are not subject to any holding period and employees can withdraw their partnership shares from the sip at any 
time matching and free shares may be subject to a holding period of between three and five years during which time they must 
be held within the sip unless the participant ceases employment whereupon they must be removed see below
forfeiture
matching shares and free shares may be subject to forfeiture in the event that a participant ceases employment within a specified 
forfeiture period not exceeding three years other than as a result of redundancy injury illhealth or reaching retirement age in 
which case no forfeiture may apply matching shares can also be awarded on the basis that they are forfeited if the corresponding 
partnership shares to which they relate are withdrawn within the forfeiture period 
cessation of employment 
employees are required to take all their shares out of the sip when they leave employment with the company or a group company
limits on the issue of shares
in any 10 year period not more than 10 of the issued ordinary share capital of the company from time to time may be issued or 
issuable pursuant to rights acquired under the sip and any other employees’ share scheme adopted by the company
for the purposes of this limit rights to acquire shares which lapse or have been released and awards satisfied by the purchase of 
shares in the market are ignored however shares subscribed by the trustees of an employee benefit trust to satisfy rights granted 
under any employees’ share scheme adopted by the company do count towards this limit
appendix	–	principal 	 features	 of	 the	 share	 incentive	 plan 74
	 plc	
annual report and financial statements 2010
appendix	–	principal 	 features	 of	 the	 share	 incentive	 plan	
continued
amendment provisions
the directors reserve the right up to the forthcoming annual general meeting to make such amendments and additions to the 
sip as they consider appropriate and following the annual general meeting which may be necessary to obtain approval from 
hmrc provided they do not conflict in any material respect with this summary of the rules
thereafter the committee may alter the provisions of the sip in any respect subject to the approval of hmrc as regards key 
features of the sip provided that the prior approval of shareholders in general meeting is obtained for alterations or additions to the 
advantage of participants to provisions relating to eligibility the number of securities subject to the sip the basis for determining a 
participant’s entitlement to shares and any adjustment thereof in the event of a variation in the company’s share capital
the requirement to obtain the prior approval of shareholders will not however apply in relation to any alteration or addition 
which is minor in nature and made to benefit the administration of the sip to comply with the provisions of any existing or 
proposed legislation or to obtain or maintain favourable tax exchange control or regulatory treatment for the company any of its 
subsidiaries or for participants
nontransferability of awards
awards of shares under the sip are not transferable except on death when shares may be transferred to the deceased employee’s 
personal representatives
benefits not pensionable
awards under the sip will not be taken into account in determining a participant’s pension rights 
share rights
shares issued and allotted under the sip will rank equally with all other ordinary shares of the company for the time being in issue 
and the company will apply for admission of any new shares issued under the sip to the london stock exchange or any other 
relevant exchange on which the shares are listed
dividends
the sip rules provide that any dividends paid on partnership matching or free shares may either be paid to the participants or 
reinvested in the purchase of additional shares known as “dividend shares” to be held in the sip for a holding period of three 
years dividend shares may not be subject to forfeiture it is not intended at present to offer participants the opportunity to reinvest 
dividends in the sip
voting rights
the trustees of the trust will not exercise the voting rights attributable to the shares held in the trust except in accordance with the 
participants’ instructions
change of control reorganisations etc
in the event of a general offer being made to the shareholders or a rights or capitalisation issue participants will be able to direct 
the trustees of the trust how to act on their behalf
term of the sip
the sip will terminate on the tenth anniversary of its adoption or such earlier date as the company in its sole discretion shall 
determine but any termination shall not affect the existing rights of any participant
funding
each participating group company may be required to fund the trustee of the trust to subscribe for andor buy shares  
free shares andor matching shares
overseas employees
at the discretion of the committee the scheme may be extended to overseas employees of the company and its subsidiaries 
subject to such modifications as the directors shall consider appropriate to take into account local tax exchange control securities 
law and other regulatory requirements subject to sip limits 75
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annual report and financial statements 2010
other	 information financial statements
a	
aamir jamil
aaran spence
aaron charles stenning
aaron foster
aaron turner
abul khashad
adam boshir
adam campion
adam clarke
adam close
adam cook
adam crowe
adam edwards
adam fenteman
adam folwell
adam ford
adam gale
adam green
adam ireland
adam king
adam laidlaw
adam molloy
adam nuttall
adam palmer
adam parrismunn
adam peter ward
adam rodriguez
adam whittaker
adam wolniewicz
adil rajah
adrian earley
adrian john rimmington
adrian kimber
aidan ward
aileen crossley
ajay arya
ajay bhakri
akiyemi orekoya
aklakud duha
akommil ali
akushu mulenga
alan collins
alan cooper
alan harwood parker
alan hughes
alan john rutherford
alan jones
alan law
alan mcdonald
alan monk
alan murray
alan norman smalley
alan saunders
alan sinclair
alan sproston
alan wrighting
alex whitmore
alexander onions
alexander penn
alexandria murphy
ali faheem
ali rizvi
alicia victoria mcgill
alison finn
alison hunt
alison walkinshaw
alistair robert payne
allan chigariro
allan coomber
allan mckissock harper
alvin chinyanga
alvin lapao
amanda jane green
amanda jane hullett
amber penn
amit bhargava
andrea horton
andrew baillie
andrew belson
andrew bowden
andrew brookfield
andrew chapman
andrew charles curr
andrew clayton
andrew colin woods
andrew collins
andrew cox
andrew curtis
andrew davis
andrew davis
andrew dawson
andrew george clay
andrew green
andrew groucutt
andrew hamilton
andrew hanson
andrew harrison
andrew hill
andrew james wood
andrew keattch
andrew leigh
andrew mark wild
andrew middleton
andrew page
andrew parnell
andrew paul hastings
andrew peter waterfield
andrew phillips
andrew riley
andrew salkeld
andrew scorgie
andrew scott
andrew taylor
andrew warne
andrew wathan
andrew winterburn
andrew woodhouse
andrew young
andy playfoot
andy shaw
angela capp
angela faulkner
angela tremelling
ann mathias
anna kucharska
anna timney
annmarie malone
ansar ahmed
anthony alveranga
anthony ashton
anthony ayres
anthony bradford
anthony christopher
anthony cox
anthony daly
anthony davies
anthony eatock
anthony francis molyneux
anthony gibby
anthony gilbert
anthony gregory
anthony james marshall
anthony linsell
anthony richard aldred
anthony townsend
anthony whiter
anthony wood
antony belham
anub kuriakose varghese
anurag thapliyal
anwar marshall
arnold harrison
aron hoff
ashleigh mackinnon
ashley cutler
ashley kent
ashley mcdonnell
ashley siddons
asim ali
astone davids
b
barbara connor
barclay pope
barrie kevin palmer
barry bester
barry blackmore
barry edwards
barry hodges
barry jones
barry melvin webber
barry taylor
barry veasey
ben armitage
ben baker
ben bright
ben brooker
ben davis
ben garcka
ben holloway
ben sawyer
ben woollins
benjamin morais
benjamin rich
bernadette peasland
bernard fallon
bertil boyles
beth boulton
bilal mukhtar
bill wylie
billy decaille
billy hutchins
bjorn bjergfelt
bob barlow
bradley ball
brandon christian abels
brant wells
brendan joseph flynn
brett case
brett goulden
brian burke
brian cariello
brian cox
brian crews
brian edward dicks
brian fisher
brian flatters
brian king
brian kirwin
brian mcguire
brigette hale
bruce fielding
bruce jeffery
bruno alves
bruno bernasconi
c
cade somerville
calbert george hall
campbell gray marr
carl cook
carl courtney
carl cumberbatch
carl edlundhrose
carl fraser
carl hermitt
carl liam collins
carl paternoster
carl roberts
carl trevor dyke
carl whatley
carlos alberto b morais
carlos chowdhury
carol lakin
carol livingstone
caroline ann bennett
caroline sarah may
caroline wilson
catherine day
catherine eliza platt
chan gokani
chantelle morgan
charlene walpole
charles ross
charles taylor
charlie battram
charlotte armstrong
cheryl vearncombe
chetna shah
chioma onyeakazi
choudre derrick grobler
chris bland
chris cartey
chris curtis
chris heyes
chris howe
chris jensen
chris markham
chris mcmillan
christer leth
christian banham
christian nicandro
christian stokes
christina langridge
christine hendry
christine thistlethwaite
christopher bloy
christopher bowles
christopher burgess
christopher collins
christopher collins
christopher cooper
christopher david fleming
christopher harbutt
christopher holland
christopher holt
christopher jon bray
christopher jones
christopher lamb
christopher moorhouse
christopher neil foster
christopher nottle
christopher santos
christopher searle
christopher stear
christopher stobbs
christopher turley
christopher walley
christopher williamson
chudry usman ghani
ciaran alainia
claire barksby
claire chaffe
claire rayton
clare barden
colin gadd
colin griffiths
colin harvey
colin hoban
colin joy
colin markham
colin micheal rymer
colin skinner
colin taylor
conrad harrup
cora ann morrison
corrina bowers
craig bradshaw
craig conway
craig dickson
craig dolling
craig gardener
craig hill
craig leslie deveson
craig lewis
craig muldoon
craig murphy
craig nammontri
craig nicholson
craig ollard
craig reed
craig robertson
craig solkhon
craig tetlow
d
dale hoy
dale jonathan stone
dale lee mccormack
damian sheppard
damon durrant
damon short
dan matthews
daniel bath
daniel brain
daniel brian musguin
daniel chant
daniel childs
daniel clayton
daniel cox
daniel fulcher
daniel hall
daniel hill
daniel ingham
daniel james little
daniel john branson
daniel jones
daniel keeble
the	 team 76
	 plc	
annual report and financial statements 2010
daniel lee
daniel loft
daniel mclean
daniel merrett
daniel peter fallows
daniel robinson
daniel spencer
daniel stiven
daniel thompson
daniel thornley
daniel van aswegen
daniel williams
daniel woodford
daniel wren
daniel zanettacci
danielle lynn whittaker
dannielle fry
darone duboisgayere
darran wood
darren bebbington
darren connor
darren doughty
darren fletcher
darren harper
darren hyman
darren irving
darren mitchell
darren neil morgan
darren rawlings
darren rutledge
darren square
darren wagg
darren walker
darron kerr
dave jobling
dave marsh
dave taylor
david laurence matthews
david atherton
david augustus
david benjamin
david binns
david burnikell
david christoph hayers
david critchlow
david dorney
david fisher
david george parr
david godbold
david grenfell
david hope
david james fitzpatrick
david jared evans
david john bolingbroke
david john carpenter
david john harper
david john hatton
david john hirst
david john steel
david kershaw
david kettlewell
david lane
david livingston hill
david martin
david martin
david matthews
david michael blades
david murray
david nadin
david neil oliver
david nicholas savage
david patrick meers
david peter macartney
david prime
david roper
david rowlands
david sheehy
david smith
david stott
david sutcliffe
david thomas henderson
david thomasson
david townsley
david webb
david whitelaw
david williams
david wilson
david yallop
dawn allan
dawn gale curtis
dawn stares
dean bull
dean carl marshall
dean johnson
dean kelly
dean lewis
dean macmillan
dean miller
dean stokes
dean titchen
dean tricker
dean woolley
debbie demes
debbie woolmore
deborah white
denis o’brien
denise fishwick
dennis cragen
dennis jepson
dennis lammas
denzil richard johns
derek alan sim
derek lambourn
derek smith
derek wooller
desmond agyei
devindren govender
dewi williams
diane shatfordbutcher
dilawar ali
dilip parmar
dinesh amin
dipal parikh
dishon meade
divyesh javiya
dominic coates
dominic hall
dominic reilly
donald magullian
donna louise boulton
donna whall
douglas hartness
duane glover
duncan foy
dylan roberts
e
eamonn clancy
edmund church
edward derbyshire
edward murphy
elizabeth morrissey
elizabeth selfridge
emily dyer
emily margaret lenton
emma bailey
emma fortes
emma hatton
emma louise kenney
emma whatson
emmanuel liwao
emran mannan
eric asuming
ermiyas girma
f
farid haddad
farooq younis
felipe da rocha west
finbarr mcquaid
fiona finnigan
fiona grant
fiona mckeracher
fitz martin
frances aylward
francesca wright
frank hibbert
fuad haibatan
g
g style
gabriel vanrel
gareth carnegie
gareth davies
gareth hammond
gareth pye
gareth robert griffiths
gareth roberts
gareth ward
garry case
garry hardy
garry padgett
gary appel
gary ashdown
gary asher
gary bloomfield
gary gear
gary george parrismunn
gary marsden
gary marshall
gary purves
gary read
gary ronald curtis
gary staines
gary wilcox
gary woolmore
gavin baker
gavin collins
gavin david bennett
gavin jepson
gavin magwood
gavin meek
gavin mitchell
gediminas merkys
gemma mcbirnie
gemma stephens
george charles peck
george latham
george martin tuplin
george martinesz
george richard wilson
george skinner
georgina catling
georgina salt
geraint thorne
gerard patrick mallon
gethin jordan
gianfranco zanolini
gillian grace
girish shah
glen james holloway
glendale canoville
glenn claridge
glenn rivers
glyn jones
glyn rogers
gordon davies
goutam saha
graham brophy
graham davidson
graham ford
graham jones
graham livingstone
graham vance
grant woolway
greg wingate
gregory john barwick
gregory salt
gurdeep panesar
gursharan bains
gursharn singh ladhar
guy ferguson
h
haim cohen
hamid deen
hannah lakey
hannah shepherd
harjit dhaliwal
haroon cockar
harpreet hansra
harpreet singh
harry biggs
hayley bover
hazel millington
helen gosling
helen march
henna khalil
henry reinoso
hitesh patel
hugh selley 
i
iain arnott
ian aikman
ian andrew mcalinden
ian bird
ian jones
ian keith bloomfield
ian marshall
ian marshall
ian mcloughlin
ian mcneish
ian michael sykes
ian noon
ian paterson
ian tivendale
ian winterburn
ibrahim cisse
imran ashraf
irene dickinson
isaac halstead
iwan jones
izabela krzyszkowska 
 
j
jabbar shah
jack cairns
jack campany
jack carslake
jack cassidy
jack o’neill
jack whitehead
jacob gonzales
jacqueline ann byrne
jailuene peake
jair sharp
jajwinder harar
jake brown
jake haudiquet
jake missen
jake shopland
jake woods
james bayley
james biesty
james butler
james cameron
james clifford
james eastham
james fox
james heard
james hollingshead
james john patston
james judkins
james mcardle
james metcalf
james morgan
james murphy
james netting
james pearson
james pilfold
james rathbone
james robertson
james rolfe
james stark
james stevens
james taylor
james thorning
james vanderplank
james whitehead
james woor
james young
jamie alan keeling
jamie axten
jamie bannon
jamie de paepe
jamie durnan
jamie evans
jamie sia
jamie thain
jamie wenborn
jan vardis reddi
janet riley
janice millett
jared rapsey
jarreth hawkins
jason buckley
jason clare
the	 team	 continued 77
review of the business governance
	 plc	
annual report and financial statements 2010
other	 information financial statements
jason clyde meadows
jason d’arcy
jason ealden
jason field
jason harper
jason jermaine nettleford
jason knox
jason morley
jason perry
jason pratt
jason rose
jason thomas
jayandrie chetty
jayaprakash paragjee
jayde bailey
jaymal arjan
jeannette hastie
jefferson rey
jeffrey david armstrong
jeffrey utley
jemma wyatt
jennifer donlan
jennifer wall
jenny inkson
jenny seabrook
jeremy paul harris
jessica mackenzie
jessica thiari
jignesh nayee
jill cox
jim tuvey
joan hicks
joanne bennett
joanne rachel elton
jodie baigrie
joe cox
joe gregorace
joe riddell
joe smith
joesph lawton
john agnew
john anthony tait
john aspey
john bourke
john chinn
john cook
john crowter
john duffy
john fawkes
john foster
john gardner
john gary smith
john hartley
john hickey
john hughes
john marc forden
john mark ellis
john marris
john moat
john neil keouski
john nelson
john page
john paine
john paul harris
john richard wright
john shaw
john smith
john stephenson
john taylor
john thompson
john williams
johnpaul jones
jon pringle
jon thatcher
jonathan bainbridgecoombs
jonathan david benn
jonathan francois
jonathan hargreaves
jonathan morgan
jonathan morton
jonathan smith
jonathan wade
jonathan wallace
jonathan williams
jonathan woodroff
jonathon a m sheerin
jonathon thomas hall
jonpaul hughes
jonpaul russell
jordan farenden
josef kinski
josephine barba hilldrup
josh batterham
josh dempster
joshua luke groener
joshua rapley
juginder gill
julie ann cox
julie anne fewings
julie brachtvogel
julie jordan
juliet wilford
justin bradley
k
kalpit b patel
kamlesh shah
karen brook
karen sutcliffe
karinajade tubb
karl atkins
karl batterham
karl dean verry
karl kristian johansson
karl stephens
kashan lennon
kashif munir
kate cook
kate rudkin
kathryn robinson
katie jayne brindley
katie slater
katie turner
katy davis
kawaljit singh gulati
keir beeson
keith ambrose
keith earl
keith fitzpatrick
keith hughes
keith ian rudkin
keith johnson
keith storrier
kelly bell
kelly savile
kellyanne o connor
kenneth wjp owen
kenneth william pettengale
kenneth williams
kerri atkinson
kerry hume
kerry saunders
ketan patel
kevan ray richardson
kevin brian baker
kevin burchell
kevin david hastings
kevin fox
kevin hailes
kevin hardy
kevin hartley
kevin hodson
kevin jeans
kevin jones
kevin naylor
kevin nicol
kevin paul bowtle
kevin rowe
kevin sherwood
kevin thorne
kevin tully
keyur pathak
kieran barneswarden
kieron clarke
kim liddle
kirsten mortlock
kirsti altass
kranthi rakesh kondaveeti
kris bailey
krishan ladwa
kristian catterall
kristina kane
kuldeep singh
kunal pandya
l
laith alrawi
lance cale
laura edwards
laura elizabeth johnson
laura kirk
laura sansom
lauretta clarke
laurie jones
lawrence mezza
leah norris
leanne michelle palmer
lee arrowsmith
lee baxter
lee clarke
lee dering
lee dover
lee downing
lee durrant
lee etheridge
lee galloway
lee gornall
lee hartness
lee hutchinson
lee jacovou
lee james
lee johnstone
lee marshall
lee mayfield
lee mcconnell
lee morris
lee raymond fisher
lee read
lee stephenson
lee taylor
lee thomas shillibeer
lee west
leena ramsaha
lefter bregu
leigh dominic holden
leigh hyam
leigh taylor
leo o’doherty
leon anthony salt
leon o’neill
leon strange
leonard finch
lesley watson
lesley wilson
leslie shemmeld
lester marshall
lewis axford
lewis edwards
lewis franklin
lewis saunders
lewis smith
lewis walter
liam allen
liam fields
liam godfrey
liam gulliver
liam hodgkins
liam hunt
liam piper
lianne harrisonallcock
linda purvis
lisa algar
lisa holmes
lloyd perry
lorna hislop
loucas louca
louis johnson
louise sprigg
louise wilson
luke kennedy
luke kerr
luke mcnally
luke potiphar
lynette grimes
lynn pearson
m
malcolm fergusonthomas
malcolm temple
malik ejaz ahmad
malik khaliq
mandy aidney
mansoor ali
marc breeze
marc stevens
marc whiting
marcel moore
marcin sakowicz
margaret dawn lawrie
marie buckingham
mark alan burgess
mark allman
mark anthony vaughan
mark atkinson
mark aveling
mark bianchi
mark bradbury
mark brown
mark brownseyjoyce
mark coe
mark discombe
mark dowling
mark frisby
mark fuller
mark geary
mark glen
mark hunter
mark johnson
mark johnston
mark lee gasson
mark lever
mark maciver
mark palmer
mark stone
mark tennant
mark thompson
mark van johnson
mark waldock
mark walters
mark winder
mark wright
marlon barnes
martin braddick
martin derricott
martin evans
martin kennell
martin morris
martin osborne
martin siggers
martin sloan
martin smyth
martin timothy williams
martin watt
martin williams
martin winterburn
martin wys
martyn gilbert
martyn spring
mary smith
mary syme
mathew clayton
matt hammersley
matt hay
matthew attwood
matthew britton
matthew charleston
matthew chase
matthew clamp
matthew clayton
matthew coward
matthew dunne
matthew fisher
matthew hill
matthew james foster
matthew james robinson
matthew james wright
matthew john foulger
matthew king
matthew lee sigley
matthew marstonchesher
matthew mcphee
matthew melia
matthew moore
matthew pickering
matthew stephen hawley
matthew stewart
matthew stuckey
matthew wesson
matthew whitlock
matthew williams 78
	 plc	
annual report and financial statements 2010
matthew woodhouse
mehmet asdoyuran
melanie gray
melton thompson
melvyn chamberlain
mervin dunaway
metimiku yohannes
michael antony finn
michael asumadu
michael blinkhorne
michael booth
michael boughton
michael bowden
michael braithwaite
michael buckley
michael campbell
michael colin earls
michael collins
michael cosgrove
michael darroch
michael fannon
michael foley
michael george litster
michael haggett
michael hall
michael harvey
michael henshaw
michael huskisson
michael jack
michael james hopper
michael jenks
michael john harvey
michael lay
michael lovelock
michael queen
michael simcoe
michael slater
michael stewart
michael van sittert
michael weeks
michele louise poxon
michelle chadwick
michelle hill
michelle kempson
michelle lawson
mike butler
mike ingham
mike king
mike potter
mohamed akeel akhtar
mohamed salim patel
mohammed amin
mohammed jimale
mohammed nawaz
mohammed parvaz
mohammed shah jamil
mubashir uddin
muhammad fazil khan
muhammad mehmood
muhammad mirza
murdo martin
n
naomi ellis
narinder chatha
natasha stringer
nathan austin
nathan bentleyhicks
nathan coulthard
nathan edwards
nathan harry
nathan heape
nathan sobers
nathan winterton
nathan wolowicz
navesh naidoo
neil ammon
neil andrew jones
neil brownley
neil charles
neil christopher hendy
neil christopher southgate
neil david homan
neil donkin
neil hughes
neil ketnor
neil philip wardlaw
neil thakore
neil topping
neil williams
neill wiltshire
nelson minj
nicholas billyeald
nicholas gadd
nicholas harper
nicholas kershaw
nicholas lawrence
nicholas lewis
nicholas ounstead
nicholas payne
nicholas turvey
nicholas walch
nicholas withers
nicholaus buchanan
nick bedford
nick donnelly
nick gussow
nick lodge
nick wardman
nicky glenister
nicky saville
nicola mcwatt
nicolas dicchi
nicole andrews
nigel fleming
nigel hickman
nigel morris
nigel parry
nigel turner
nikola sutton
nilesh kerai
noah lawrie
numan razaq
numan usman
o
oliver clancy
osemar masaya
p
paige makepeace
pamela cuffin
patrick burke
patrick chambers
patrick coleman
patrick mcgee
paul aaron renyard
paul aird
paul andrew irving
paul baxter
paul burkett
paul carter
paul cartledge
paul chapman
paul charles kelly
paul clark
paul collett
paul cull
paul dalby
paul davey
paul davies
paul fitzsimmons
paul galvin
paul greenslade
paul holmes
paul james burrow
paul james cowen
paul james smitheringale
paul john starkey
paul lathrope
paul laverty
paul mccabe
paul mckenna
paul michael mills
paul miller
paul nicholls
paul noyes
paul rockett
paul ruddle
paul silvester
paul smith
paul symonds
paul tallan
paul tennant
paul whittington
paul wiltshaw
paula elizabeth budsworth
pauline harrison
pawel warych
penny vanderplank
peter anderson
peter brooks
peter charters
peter davey
peter higgins
peter hogg
peter hughes
peter jones
peter lea
peter lettis
peter mcintyre
peter meredith
peter nicholson
peter norwood
peter paul jenkins
peter simmonds
peter walmsley
peter woods
peter young
petr stepan
phil kelly
philip alex cranston
philip anthony mccarney
philip chrysandrea
philip david lewis
philip deakin
philip devine
philip dunn
philip english
philip gallop
philip james hibbert
philip trevis
phillip ell
phillip goodeve
phillip john hunt
phillip walters
phillipa hewitt
phonphan butkhorn
prakash mistry
premyslaw swisloki 
 
q
quadeer ahmed
r
rachel willcock
raj surani
rajan mehta
rajiv vadgama
ravendra bishun
ray jeakins
raymond johnson
raymond thompson
rebecca geer
rebecca heather
rebecca karen smith
rebecca oblein
reg anderton
rhys hedges
rhys kelland
ricardo malcolm
richard banton
richard brookfield
richard carter
richard carter
richard chiverton
richard clark
richard cooke
richard edwards
richard fellows
richard harris
richard hopkin
richard john davies
richard matthew lee
richard oates
richard oldale
richard paul bickers
richard paul homan
richard slack
richard sumner
rickey singleton
riki spadone
rob chawner
rob owen
robel ghebrewold
robert michael bellamy
robert adkins
robert avery
robert bindon
robert brewin
robert cairns
robert clarke
robert clarke
robert courtney
robert david adams
robert fernandes
robert george
robert gilbert
robert howes
robert james howker
robert john exley
robert keohone
robert king
robert knight
robert kweli
robert lamb
robert lynch
robert moss
robert myers
robert parker
robert philpott
robert power
robert prince
robert sly
robert swift
robin dixonfyle
robin moore
robin stagg
rodney meyer
roger bailey
roger gridley
romaldo rodrigues
roman kojhuharov
ron woolgar
ronnie webster
rory milne
ross ashbrook
ross copley
ross hunt
ross langford
ross mcnair
ross philpot
roxanne evans
roxanne martin
roy leslie peasland
roy redgate
russ davis
russell adgey
russell ball
russell potlin
russell shafer
russell thornton
ryan apark
ryan curd
ryan gomersall
ryan jones
ryan jones
ryan mason
ryan randall
ryan sinclair
s
saad bin maqsood
sachin radia
sagren naidoo
sajid aibani
saleh idris
salman bawani
sam francis
sam kofi nortey
sam orton
sam ripley
samantha ann hunter
samantha barrett
samantha louise sayer
samantha mussett
samantha sumbler
samantha suthard
the	 team	 continued 79
review of the business governance
	 plc	
annual report and financial statements 2010
other	 information financial statements
sameer jamdar
sampson coomber
samson okolosi
samuel awoliyi
samuel ben carey
samuel major
samuel prewer
sandip sahota
sandra ramsay
sanjay patel
sanjeepan balasubramaiam
santosh gauniyal
saqib ishfaq
sarah bacon
sarah cassam
sarah dobson
sarah drake
sarah kite
sarah marshall
sarah ramm
sarah shirley
sarah victoria newcomb
scott ahmad
scott ambrose
scott birdseye
scott bond
scott booth
scott campbell
scott currie
scott hatton
scott james meadows
scott williams
scott winchester
sean austin
sean cahill
sean daniel green
sean dare
sean gee
sean weatherby
sergio antunes
shahid mahmood
shana doherty
shane brian w horsted
shane bryan
shane daley
shane england
shane harvey
shane malone
shane till
shannon emily woods
sharon beckett
sharon buckley
shaun bryan
shaun hutchins
shaun malcolm douglas
shaun mayes
shaun pawsey
shaun scott
sheila myrie
sheila robertson
shelley rutter
shezad parkar
shirley moore
shoaib shakoor
shohale ali
sian griffiths
silvonne mclean
simon arthur brookfield
simon cripps
simon crossland
simon dunsford
simon frew
simon gareth jones
simon green
simon grimmett
simon gundry
simon james chappell
simon james neal
simon lacey
simon lasham
simon lee brookfield
simon leslie
simon lewis
simon loach
simon palmer
simon partridge
simon paul witham
simon pitt
simon roberts
simon stuart morgan
simone turner
sinitta maan
siobhan waters
stacy sturdy
steffan burns
stephanie ailwood
stephanie anne nevett
stephen adams
stephen barry marshall
stephen benson
stephen bloomfield
stephen collins
stephen corkett
stephen crane
stephen creasey
stephen foote
stephen france
stephen freeman
stephen getty
stephen green
stephen kelly
stephen machin
stephen michael lewis
stephen seymour
stephen spurgeon
stephen starkie
stephen welsby
stephen west
steve bristow
steve clayton
steve gaylor
steve mccormick
steve smith
steve smith
steve smith
steve wood
steven buxton
steven christie
steven christop walker
steven clifford godwin
steven dooley
steven dyson
steven hooper
steven howells
steven james mackie
steven jenkins
steven kernot
steven macarthur
steven o’hara
steven paul richards
steven pressley
steven whitehead
stewart ian creaser
stuart baigent
stuart barrett
stuart bartlett
stuart booker
stuart clarke
stuart comer
stuart corlett
stuart davey
stuart david pemberton
stuart dixon
stuart gorry
stuart hall
stuart john whitby
stuart munton
stuart rees
stuart roscoe
stuart ross
stuart williams
stuart williams
sue bill
suresh mistry
surmukh jandu
susan black
susan jeanette attwell
susan margaret hulme
susan mary henshall
suzanne owen
t
tami robinson
tanya paterson
tanya sharpe
tara smith
teodoro zapanta
terab ali
terance langford
terence dowling
terence j dooley
terry brown
terry howard
terry hutchinson
terry salisbury
theresa scrase
thomas boulton
thomas charles newman
thomas clutterbuck
thomas crawford
thomas cunningham
thomas gerard wade
thomas marriott
thomas otley
thomas ryan
thomas swain
thomas william fry
tim bird
tim ives
tim tatlock
timothy bentley
timothy gerard boardman
timothy stanhope
timothy tuff
toby collins
toby hutton
todd routledge
tom evans
tom lewis
tom mcdowell
tom watkins
tom wood
tony dedman
tony nunn
tony watson
tracey ann hansard
tracy karen ryan
tracy wickenden
trevor hutchings
trevor thomas
troy wyse
tyler atheis
tyrell beckham
tyrone godsoncharles 
 
u
upendra dudhaiyia
urmila bhudia 
v
varun sharma
vilius meilus
vince barber
vinesh goswami
vinod joshi
vinsen velvindron
w
walkey hilaire
warren bester
warren daly
wayne michael farini
wayne quaintance
wayne randall
wayne wheeler
wendy bruce
wesley harrop
wesley neukermans
will bailey
william a gunshon
william barreda
william brownsell
william cruickshank
william lewinton
william mason
william ralls
william ryves
willy wishard silupya
y
yusuf bassaf
yusuf hasan ahmed mursal
yvonne archer
yvonne burgess
yvonne simpson
z
zaccai newman
zainab mahmoud idris
zeeshan naveed
zoe atkinson
zoe derry
zoe leadbeatter
zoe mills 80
	 plc	
annual report and financial statements 2010
store	 locations
total	312	stores
• 
new store 200910
topps	 tiles
tile	 clearing	 house
midlands
cheltenham
birmingham – 
great barr
kettering
kidderminster
northampton
norwich
 
nottingham
nuneaton
peterborough
shrewsbury
stokeontrent
stokeontrent –
fenton
wolverhampton
london
barking
charlton
dartford
hayes
orpington
park royal
southgate
south
bournemouth
eastbourne
exeter
harlow
ilford
plymouth 
swindon
wales
swansea
north
blackpool
cheadle
doncaster
liverpool –  
maghull
hull
lincoln
stockport
wigan 
scotland
aberdeen
 
midlands
birmingham –  
erdington
birmingham –  
solihull
birmingham –
sheldon
boston
burton upon trent
cannock
chesterfield
coventry
coventry – binley
derby
derby – omaston
evesham
grantham
hereford
kidderminster
kings heath
leicester
leicester –  
grove park
lincoln
long eaton
mansfield
newark
newcastle under
lyme
nottingham
redditch
rugby
shrewsbury
spalding
stamford
stoke on trent
stratford upon 
avon
•
tamworth
telford
west bromwich
wolverhampton
worcester
worksop 
 
 
 
london
battersea
beckton
beckenham
•
borehamwood
brentford
brixton 
camden
catford
catford – 
bromley rd
•
charlton
cheam
chingford
colindale
croydon
dagenham
east sheen
•
edmonton
enfield
feltham
forest hill
fulham
gunnersbury
harrow
highgate
ilford
mile end
mitcham
new cross gate
new southgate
old kent road
penge
raynes park
romford
ruislip
southall
stamford hill
staples corner
•
stevenage
streatham
•
 
strood
•
twickenham
uxbridge
vauxhall
waltham cross
wandsworth
watford
wembley
west wickham
wimbledon
•
south
abingdon
ashford
aylesbury
banbury
barnstaple
basildon
basingstoke
bedford
bexhill
bishops stortford
bognor regis
bodmin
braintree
brentwood
bridgwater
brighton
bristol –  
clevedon
bristol –  
bedminster
bristol – cribbs  
causeway
broadstairs
buckingham 
bury st edmunds
byfleet
camberley
cambridge
canterbury
chichester
chippenham 
chelmsford
cheltenham
chesham
christchurch
clacton
colchester
crayford
cromer
eastbourne
erith
exeter
exmouth
fareham
farnborough
farnham
folkestone
frome
gatwick
gloucester
grays
great yarmouth
guildford
harlow
hemel  
hempstead
hengrove
horsham
huntingdon
ipswich
ipswich –  
martlesham
isle of wight
kettering
kings lynn
launceston
letchworth
lewes
lowestoft
luton
maidstone
milton keynes
newbury
newhaven
northampton
norwich
orpington
oxford
oxford –  
watlington
peterborough
plymouth
poole
portsmouth
rayleigh
reading
salisbury
sittingbourne
slough
southend on sea
southampton –
hedgend
southampton
millbrook
st albans
st neots
sudbury
swindon
taunton
thetford
tiverton
tonbridge
torquay
tunbridge wells
uckfield
wellingborough
welwyn garden 
city
weston super 
mare
winchester
windsor
•
wisbech
truro
•
yeovil
wales
bangor
•
barry
bridgend
cardiff
cardiff – south
glamorgan
cross hands
flint
haverfordwest
holyhead
merthyr tydfil
neath
rhyl
swansea
wrexham
	
	
north
aintree
anfield
barnsley
barrow in furness
birkenhead
birstall
blackburn
blackpool
bolton
•
bradford
•
carlisle
cheadle
chelmsford
chester
chorley
cleveleys
congleton
crewe
darlington
doncaster
durham
grimsby
harrogate
huddersfield
hull
leeds
leek
macclesfield
manchester –
audenshaw
manchester –
green quarter
manchester –
failsworth
manchester – 
hyde
manchester –  
salford
manchester – 
sale
manchester –
stockport 
manchester – 
openshaw
•
morecambe
nantwich
northwich
oldham
•
ormskirk
penrith
pontefract
preston
rotherham
scarborough
stockton
st helens
sunderland
tyneside
wakefield
warrington
widnes
wigan
•
york
scotland
aberdeen
dumfries
dundee
edinburgh –
kinnaird
•
edinburgh – 
sighthill
edinburgh –  
leith
falkirk
glasgow
glasgow – 
govan 
glasgow –  
greenock
glasgow –  
hillington
glasgow –  
shawfield
inverness
wishaw introduction
“this has been a robust performance from the    
 business during a tough trading period which 
   demonstrates the effectiveness of our strategy  
  and the strength and resilience of our business  
 model through the prudent management of 
 costs and careful control of our business we    
 have significantly reduced our net debt position  
 during the period and continued to build on our  
 market leading position” 
 matthew williams chief executive officer
inside this year’ s report
12
8
4
grea t servi ce grea t choi ce great prices
r eview of  
the business
1 the year in brief
2 our strategy
3 chairman’s statement
5 chief executive’s statement
9 business review
17 corporate social responsibility
governance
20 directors
21 directors and advisors
22 directors’ report
25 corporate governance  
 statement
27 remuneration report
 
 
 
financial  
statements
30 independent auditors’ report  
 – consolidated financial  
 statements
31  consolidated statement of 
financial performance
31  consolidated statement of 
comprehensive income
32   consolidated statement of 
financial position
33  consolidated statement of 
changes in equity
34   consolidated cash flow 
statement
35   notes to the consolidated 
financial statements
63  independent auditors’ report 
– company financial statements
64 company balance sheet
65 notes to the company  
 financial statements
additional 
information
67 five year record
68 notice of annual   
 general meeting
71 explanatory notes to  
 the notice of annual  
 general meeting
73  appendix – principal features 
of the share incentive plan
75 the team
80 store locations
h
april 2010 sees the proud launch  
of our successful new website
 plc 
annual report and financial statements 2010
store locations
topps tiles – store numbers
stores at the beginning  
of the period 265
new stores opened 17
subtotal 282
closures including brand swaps –7
total 275
tile clearing house – store numbers
stores at the beginning  
of the period 44
new stores opened –
subtotal 44
closures including brand swaps –7
total 37
designed and produced 
by r adley yeldar
wwwrycom
stores operated by the 
group in north region
 50 
stores operated  
by the group  
in midlands region
 1 1 3
stores operated  
by the group  
in south region
 15 
stores operated  
by the group  
in wales
stores operated  
by the group  
in london
56 
63 
midlands
north
scotland
south
wales
london
stores operated by  
the group in scotland
15  topps tiles plc 
annual report and financial statements 2010
great  
choice
great  
price s
great  
ser vice 
topps tiles plc
thorpe way grove park enderby
leicestershire le19 1su
t 0116 282 8000 
f 0116 282 8115
wwwtoppstilescouk
topps tiles plc annual report and financial statements 2010


Summary:
 financial performance
current trading and outlook
the group is now trading from 312 stores 2009 309 stores in the uk
in the first seven weeks of the new financial period group revenues increased by 29 and increased 
by 32 on a likeforlike basis
  comparative numbers are presented after restating the statement of financial performance to reflect the dutch business as a discontinued operation further  
 information is provided in note 1 1
  2010 adjusted operating profit is adjusted for exceptional items being the impairment of plant property and equipment of £08 million 2009 £10 million  
 and other restructuring and oneoff costs of £04 million 2009 £05 million
  2010 adjusted profit before tax is adjusted for the effect of exceptional items above plus
 – £28 million non cash charge relating to the interest rate derivatives the group has in place per ias 39 2009 £58 million
 – property disposal gain of £01 million 2009 loss of £03 million
 adjusted for the post tax effect of nonrecurring items highlighted above
please note this report has been prepared for the 53 weeks ended 2 october 2010 and the comparative period has been prepared for the 52 weeks ended  
26 september 2009 with the exception of the group likeforlike revenue measure which is comparable the reported figures are presented on this basis  
and are not entirely comparable the impact of the additional week is to increase revenue by £36 million and operating profit by £04 million
£1824m
group revenue
2009 £1788m
£199 m
operating profit
2009 £213m
£124m
profit before tax 
2009 £99m
 1 p
dividend per share
2009 nil
17 
group likeforlike revenue 
2009 –131
£211 m
adjusted operating profit 
2009 £228m
537 p
basic earnings per share 
2009 100p see note 13
£491 m
net debt 
2009 £712m
587 
group gross margin
2009 592
£1 63m
adjusted profit before tax 
2009 £17 5m
618p
adjusted basic earnings per share 
for continuing operations 
2009 7 34p see note 13
 plc 
annual report and financial statements 2010
1
review of the business governance financial statements other information
the year in brief