(Reuters) - British tile retailer Topps Tiles on Tuesday swung to an annual loss and predicted more pain ahead for its commercial business, as it struggles with coronavirus disruptions to the construction industry.
"During the most intense period of the UK lockdown during the third quarter a number of our construction and refurbishment projects were postponed or starts delayed or cancelled," the company said.
Shares in the company were 2% lower by 0812 GMT, taking its year-to-date losses to 22%.
The pandemic has muted activity levels of architects, designers and contractors, and stunted growth in the construction industry, although Topps started to see demand improving in September on easing restrictions.
Topps Tiles said on Tuesday retail business was seeing an uptick as Britons under lockdown have taken to more domestic repair, maintenance and home improvement, adding that its commercial market, while still subdued, recorded an improvement in activity levels.
The company posted a statutory loss before tax of 9.8 million pounds ($13.11 million) in the year ended Sept. 26, compared with a profit of 12.5 million pounds a year earlier. On an adjusted basis, profit slumped 78% to 3.6 million pounds.
Topps Tiles did not propose a final dividend due to the challenges, but said it would re-instate "as soon as is appropriate".
Retail like-for-like revenue jumped nearly 20% in the first eight weeks of its new fiscal period.
Topps Tiles, which has 300 stores nationwide, said it aims to account for 1 pound in every 5 pounds spent on tiles and associated products in the UK by 2025.
