topps tiles plc
annual report and financial statements 2005
one company  one year  one objective the topps tiles group is britain’s biggest
tile and wood flooring specialist with
244 stores throughout the uk and with
a controlled opening programme of 24
new stores per annum the uk store 
target of 350 stores is well within
reach
topps’ record since flotation in 1997 is
consistently excellent with basic 
earnings per share showing over 40
average annual compound growth over
the past eight years and with our 
dominant market position more new
stores and a growing market the 
board expects a continued build in 
shareholder value
contents
01 financial highlights
03 chairman’s statement
05 strategy statement
07 chief executive’s statement
11 operating and financial review
17 corporate  and social responsibility
20 executive directors
21 nonexecutive directors
22 operational directors
24 directors and advisors
26 directors’ report
29 corporate governance statements
31 remuneration report
36 independent auditors’ report
38 consolidated profit and loss account
39 balance sheets
40 consolidated cash flow statement
41 notes to the financial statements
60 five year record
61 notice of annual general meeting
64 explanatory notes to the notice of 
annual general meeting
66 financial calendar
67 the team
72 store locations
growth
stuart williams
president and cofounder financial highlights 52 weeks results to 1 october 2005
topps tiles plc 
annual report and financial statements 2005 01
 group gross margin increased to 613 
2004 605
 group likeforlike turnover increased by 
34
 operating costs increased to 400 
2004 399
 profit before tax margin increased to 226 
2004 214
 profit before tax margin excluding 
exceptional profit on capital items increased
to 217 2004 211
 dividend policy maintained at 141 times cover
 a final net dividend of 600 pence per share to 
be paid on 31 january 2006
 net cash position of £218m
 a net 24 new stores opened in the uk in this 
financial period 
 13 stores now trading in holland 2004 11 
stores

181
basic earnings per share increased
to 1334p 2004 1130p 

188          
dividend per share increased
to 950p 2004 800p

100
group turnover increased by 100 
to £1733 million 2004 £1576m for 
53 weeks

161
profit before tax increased by 161 
to £392 million 2004 £338m for 
53 weeks topps tiles plc 
annual report and financial statements 2005 02
15
stores refurbished during the
last financial period as part
of our commitment to
infrastructure investment
turnover £m 
2001 
0 
50 
100 
150 
200 
2002 2003 2004 2005 
746 
957 
1189 
1576 
1733 
source  see page 13 
244
stores trading across the uk
with a further 13 in holland
24
new stores net opened in 
the last 12 months topps tiles plc 
annual report and financial statements 2005 03
i am pleased to report another strong performance by the group with
record profits and increased uk market share  we have consolidated
our position as the leading uk ceramic tile and wood flooring 
specialist backed by what is now a truly national brand the new
topps distribution and marketing centre is fully integrated with the
capacity to support our uk store target of a minimum of 350 stores
the period has seen a particularly weak uk consumer environment
however i am pleased to report the resilience of our business model
has enabled us to continue to deliver record results and to outperform
the market  
since flotation in 1997 total shareholder return has grown by over
2000 and we have consistently been a top performing company in
the ftse index 
financial results
group turnover has increase by 100 over the period to £1733 
million with profit before tax increasing by 161 to £392 million
gross margins have improved to 613 compared to 605 in 2004
2004 was an exceptional year in respect of trading and if you look at
the trend over the last two years likeforlike sales have improved
249
set against extremely strong comparatives last year and the tough uk
trading growth in likeforlike sales for the period was 34 with 
overall sales growth of 100 
our business continues to be highly cash generative and at the year
end we had net cash balances of £218 million
board changes
as announced at the annual general meeting on 11 january 2005
stuart williams my cofounder of topps stepped down as 
cochairman and board director on 31 march 2005 i am delighted
however that stuart has taken on the newly created non board 
advisory role of president and continues to offer his expertise and
guidance to the business
dividend
the board continues to be committed to a progressive dividend policy
and is recommending a final dividend of 600 pence per share
together with the interim dividend of 350p per share the total 
dividend for the period will be 950 pence per share an increase of
188 the dividend will be paid on 31 january 2006 to all shareholders
on the register as at 13 january 2006
people
our staff are fundamental to the success of the business and i would
like to take this opportunity to thank all our employees for their 
inspiring contributions and continued commitment during the period
we have created another 174 jobs as a direct result of our expansion
programme
outlook
although the current uk trading environment continues to be volatile
i remain confident that the strength of our business model and the
expertise of the strong management team will enable us to continue
to grow the business and ensure the delivery of sustainable growth for
shareholders
barry bester
chairman
chairman’s statement
the key to our continued success is our commitment to the highest levels of 
customer service and both the range and quality of products that we offer
244 stores  one focus
barry bester
chairman topps tiles plc 
annual report and financial statements 2005 04
store 
locations
stock 
availability
store 
layout
our success 
is built on four 
key cornerstones




customer
service topps tiles plc 
annual report and financial statements 2005 05
1 customer service
we continually strive to provide and maintain high levels of 
customer service and regard it as fundamental to the ongoing 
success of topps the quality and performance of our staff at every 
level is key and we train all our staff at our own national and 
regional training centres and through our elearning tile training 
college customer service remains our number one priority and it is 
our policy to be honest helpful and knowledgeable but never 
pushy
we complement the advice that our staff can give in store with a 
range of services offering practical support to customers which 
include loanatile free “how to” video or dvd tile cutting service 
and our buyback service which allows undamaged stock tiles to be 
returned within 28 days for a full refund
2 store locations
topps stores are purposely located in highly visible destinations on 
or close to busy roads and always with parking facilities our stores 
in the main are not located on high streets or large retail parks our 
controlled expansion programme is taking us across the uk and a 
full list of stores can be found at the end of this report or on our 
website at wwwtoppstilescouk
our stores trade seven days a week on monday to saturday opening
from 800am to 600pm and on sundays either 1000am to 400pm 
or 1100am to 500pm with a number of larger stores opening until
800pm during the week
3 store layout
our average store size is just over 6300 square feet and can 
accommodate our inhouse formats including floor store and stone
works which usually have their own individually branded section of
the store  
all our stores have a similar layout are clearly branded and 
designed to be customerfriendly with product and pricing clearly 
displayed on colourful and informative pointofsale displays the 
stores are miniwarehouse style which is ideal to display our 
extensive product ranges as well as ensuring they are easy to 
navigate with trolleys prams and pushchairs 
4 stock availability
topps tiles and tile clearing house offer a huge choice of product 
with the best the world has to offer in wall and floor tiles natural 
stone laminate and real wood flooring our extensive instore 
product offering is supported by onsite stock facilities the 
combination of choice of product with the availability of stock is 
unrivaled in the uk our new marketing and distribution centre 
ensures that all our stores receive at least two deliveries a week to 
ensure stock levels are maintained at every store
strategy statement
we always aim to provide high levels of
customer service across both our brands
4 key cornerstones 
one strategy topps tiles plc 
annual report and financial statements 2005 06
voted company of the year for the
second consecutive year at price
waterhouse coopers plc awards
continued tv
sponsorships
6307
sqft is the average size of our
miniwarehouse style stores
source  see page 13 
overall sales and likeforlike 
sales growth  
2001 
0 
10 
20 
40 
30 
2002 2003 2004 2005 
192 
53 
283 
113 
242 
152 
325 
215 
100 
34 

26
projected market growth over
the next five years topps tiles plc 
annual report and financial statements 2005 07
this year in a turbulent uk trading environment we have again
demonstrated the fundamental strength of our business through the
continued delivery of improved profits
store development and expansion                                                                     
our national store opening programme continues apace with a net 24
new stores 20 topps and 4 tile clearing house opened in this 
financial year we now have a total of 244 trading stores 207 topps
and 37 tile clearing house and are firmly on our way to achieving our
stated target of a minimum of 350 uk outlets we continue to enjoy a
good pipeline of suitable sites for occupation or development
in line with our policy of continued store development and 
refurbishment 3 stores were closed or relocated 15 refitted and a net
24 new stores opened in the period we have a total of 64 stores 
offering our tile studio concept of extra choice of upmarket tiles 
available on a special order basis and 17 floorstores with an enhanced
stock range of laminate and real wood flooring the average square
footage of our stores has increased gradually and is now  over 6300
square feet
our stoneworks concept has continued to be popular as consumers’
appetite for natural product grows we now have 19 stores open with
a full stoneworks offering and we also offer a selected range of these
products in all our other stores
holland
we now have a total of 13 stores trading in holland under our 5050
joint venture including two new stores opened in the period it is our
intention to open a minimum two stores in the next financial period    
marketing advertising and sponsorship
as part of our strategy to be “the brand” of choice in the uk we 
have again continued our nationwide marketing and advertising 
programme our approach is two fold using national television 
advertising both digital and terrestrial coupled with print and radio
advertising on a regional basis this is not only an effective strategy in
respect of maximising our reach uk wide but is also a cost effective
approach spreading costs across each store in concentrated areas such
as central london for example the carlton weather sponsorship
chief executive’s statement
2 core brands 
one objective
driving the business 
forward
nicholas ounstead
chief executive officer topps tiles plc 
annual report and financial statements 2005 08

161
increase in profit before tax
613
gross margin
number of stores at the financial period end 
2001 
0 
50 
100 
150 
250 
200 
2002 2003 2004 2005 
147 
171 
196 
220 
244 
source  see page 13  topps tiles plc 
annual report and financial statements 2005 09
more specifically in 2004 the uk ceramic tile market grew 12 to 772
million square metres an increase of 49 compared with 2000 at
manufacturers selling prices the market was worth close to £400 
million in 2004 source mbd  
the uk still has a very low consumption rate compared to its european
counterparts with only 11 of world consumption in 2004 compared
with for example spain at 59 source ceramic world review
consumption continues to increase driven by issues such as health
and hygiene an increase in second bathrooms shower rooms 
conservatories and utility rooms and an increase in the use of 
underfloor heating systems  
uk retail sales of ceramic tiles are expected to increase by 26 by
2010 source mbd and we are confident therefore of the continued
growth in the ceramic tile market
current trading
in the first seven weeks of the new financial period we have recorded a
likeforlike sales decrease of 47 however the two year likeforlike
sales shows an increase of 141 overall sales have increased by 12
over last year and 248 over two years 
we have opened stores in hayes lewes and pentonville road already
this new financial year with our target rollout of 24 new stores for
200506
there is no doubt that we along with the rest of the uk retail sector
are experiencing a very tough trading environment however given the
strength of these results we believe we have the right business model
and the best people to continue to gain market share and we are well
placed to maintain our goal of providing sustainable returns for 
shareholders
nicholas ounstead
chief executive officer
chief executive’s statement continued
topps tiles is one of britains biggest supporters of youth 
football topps stores currently sponsor 225 teams nationwide and our
yellow kit is arguably the most famous in the beautiful game
staff development and customer service
our vision is of highperforming motivated and welltrained people
who can make a difference to our customers shareholders the 
business and themselves we live by our values of friendly helpful and
expert advice  
the quality of leadership in the company is key to the successful 
delivery of our strategy for growth and our commitment to training
development and career progression is demonstrated through our 
inhouse training school incentive schemes bonus system share save
schemes and other incentives including the ‘home computing
initiative’ and the ‘cycle to work’ schemes we have recently introduced
a comprehensive employee benefits scheme which includes a whole
range of internal and external company benefits from discounts on
holidays to an employee helpline service
we understand the true value of all our employees and actively
encourage the recruitment of staff from all age groups we have a 
policy of internal promotion encouraging employees to advance their
careers both in the stores and the head office functions
the market
despite a widely reported slow down in spending we believe that in
the midlonger term diy retail remains a relatively stable sector there
are a number of factors underpinning the future of the retail diy 
market the uk population is growing steadily particularly in the 35
64 key age band for diy and household numbers are growing faster
than the population up from 224 million in 1991 to 245 million in
2003 and owner occupancy is also on the rise and with an ageing uk
housing stock that requires constant repair and maintenance topps tiles plc 
annual report and financial statements 2005 10
gross margin  
2001 2002 2003 2004 2005 
40 
45 
50 
55 
65 
60 
550 
560 
575 
605 
613 
source  see page 13 
£88m
total capital expenditure 
during the financial period

181
basic earnings per share increase topps tiles plc 
annual report and financial statements 2005 11
operating and financial review 
this does not represent a statutory operating and financial review as
set out in the companies act 1985 schedule 72a and in rs1
nature objectives and strategies of the business
topps tiles plc is britains biggest tile and wood flooring specialist
group with over 244 stores throughout the uk we have an opening
programme of 24 stores per financial year and a long term target of a
minimum of 350 stores uk wide  
our founders stuart williams and barry bester whose vision and
enterprise built up the business from just a few shops are still major
shareholders
topps first specialist tile centre opened in manchester in 1963 it was a
pioneering concept offering customers quality tiles at bargain prices
sold by friendly helpful people this policy has never changed
we operate two brands in the market topps tiles and tile clearing
house topps is britain’s biggest tile and wood flooring specialist group
with the largest choice in the uk to suit all tastes and budgets
tile clearing house is a true “cash and carry” tile store selling end of
lines job lots and seconds appealing to small builders local 
contractors and bulk purchasers
today at topps you will find the best the world can offer in wall and
floor tiles natural stone laminate and solid wood flooring underfloor
heating tools adhesives grouts accessories and cleaning products are
also on hand for the perfect finish to any job
most of the tiles commissioned for topps go straight to our central
warehouse and distribution centre near leicester from here all topps
stores receive at least two bulk deliveries a week so stock is constantly
flowing to keep pace with demand
the business is built on four cornerstones that underpin our success
customer service store locations store layout and stock availability
our aim is to increase shareholder value through the delivery of 
sustainable earnings growth
operating environment
historically the group’s business has proven to be resilient in the face
of economic downturn the business has traded through a number of
recessions and whilst sales continued to grow we did experience some
pressure on margins however the business has changed over the
years and we are confident that our current business model places us
well to continue to deliver future shareholder value 
several business goals 
one target
meeting our operational and
financial objectives
nicholas ounstead
chief executive officer
andrew liggett
finance director topps tiles plc 
annual report and financial statements 2005 12

188
increase in dividend payout
£218m
net funds position as at
1 october 2005
profit before tax £m 
2001 
0 
10 
20 
30 
40 
2002 2003 2004 2005 
94 
132 
189 
338 
392 
source  see page 13  topps tiles plc 
annual report and financial statements 2005 13
operating and financial review continued
operating environment continued
topps is the market leading brand in the uk enjoying an estimated
20 market share by value estimated market shares are based on
external research by mbd
in terms of competitive positioning topps sits between the diy chains
and the independent tile retailers in the uk there is one other 
significant chain tiles r us but they also sell bathrooms and kitchens
key performance indicators
the directors monitor a number of financial metrics and key 
performance indicators kpis for the group and by store including


Summary:
 topps tiles plc 
annual report and financial statements 2005 03
i am pleased to report another strong performance by the group with
record profits and increased uk market share  we have consolidated
our position as the leading uk ceramic tile and wood flooring 
specialist backed by what is now a truly national brand the new
topps distribution and marketing centre is fully integrated with the
capacity to support our uk store target of a minimum of 350 stores
the period has seen a particularly weak uk consumer environment
however i am pleased to report the resilience of our business model
has enabled us to continue to deliver record results and to outperform
the market  
since flotation in 1997 total shareholder return has grown by over
2000 and we have consistently been a top performing company in
the ftse index 
financial results
group turnover has increase by 100 over the period to £1733 
million with profit before tax increasing by 161 to £392 million
gross margins have improved to 613 compared to 605 in 2004
2004 was an exceptional year in respect of trading and if you look at
the trend over the last two years likeforlike sales have improved
249
set against extremely strong comparatives last year and the tough uk
trading growth in likeforlike sales for the period was 34 with 
overall sales growth of 100 
our business continues to be highly cash generative and at the year
end we had net cash balances of £218 million
board changes
as announced at the annual general meeting on 11 january 2005
stuart williams my cofounder of topps stepped down as 
cochairman and board director on 31 march 2005 i am delighted
however that stuart has taken on the newly created non board 
advisory role of president and continues to offer his expertise and
guidance to the business
dividend
the board continues to be committed to a progressive dividend policy
and is recommending a final dividend of 600 pence per share
together with the interim dividend of 350p per share the total 
dividend for the period will be 950 pence per share an increase of
188 the dividend will be paid on 31 january 2006 to all shareholders
on the register as at 13 january 2006
people
our staff are fundamental to the success of the business and i would
like to take this opportunity to thank all our employees for their 
inspiring contributions and continued commitment during the period
we have created another 174 jobs as a direct result of our expansion
programme
outlook
although the current uk trading environment continues to be volatile
i remain confident that the strength of our business model and the
expertise of the strong management team will enable us to continue
to grow the business and ensure the delivery of sustainable growth for
shareholders
barry bester
chairman
chairman’s statement
the key to our continued success is our commitment to the highest levels of 
customer service and both the range and quality of products that we offer
244 stores  one focus
barry bester
chairman topps tiles plc 
annual report and financial statements 2005 04
store 
locations
stock 
availability
store 
layout
our success 
is built on four 
key cornerstones




customer
service