Topps Tiles Annual Report 2001

FY2001 Annual Report · Topps Tiles
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Rushworth House, Wilmslow Road, Handforth, Wilmslow, Cheshire SK9 3HJ.  Telephone 01625 446 700  Facsimile 01625 446 800   www.ToppsTiles.co.uk

Topps Tiles Plc

Topps Tiles Plc Annual Report and Accounts 2001

 
 
 
 
 
 
 
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BIG RESULTS

Summary of Results and Financial Highlights

This is the fourth consecutive year since ﬂotation, in which

our ﬁnancial results have shown signiﬁcant growth. More

new stores, a growing brand awareness and a strong

performance by staff have combined to drive the business

forward.

•Turnover up 19.2% ................now £74.6m.

•Gross proﬁt up 20.2%............now £41.1m.

•Proﬁt before tax up 17.4%.......now £9.4m.

•Earnings per share up 13.0%...now 14.8p.

•Like-for-like sales growth..............of 5.3%.

3

55265_4&5  12/9/01  7:45 pm  Page 1

Joint Statement by the Chairman and Chief Executive 

Financial Results

At the period end cash balances for the Group were £2.2m

We are pleased to announce another strong set of ﬁnancial

and long term bank loans were £2.7m.

results showing considerable growth for the year.  Topps

Tiles achieved a 17.4% increase in proﬁt before tax to

Dividend

£9.414 million, from £8.018 million in 2000, with a 19.2%

With sales for the current trading year indicating continued

increase in turnover to £74.642 million from £62.614 million

growth, the Board is recommending a ﬁnal dividend of

last year.  Our gross proﬁts increased 20.2% to £41.090

3.85p. The dividend will be paid on 1st October 2001 to all

million and sales for the period were 5.3% ahead on a like-

shareholders on the register as at  7th September 2001.

for-like basis.

The total dividend for the year is 5.00p per share against

4.33p for 2000, an increase of over 15%.

Whilst gross margins for the year overall were slightly

ahead of those for the same period last year (55.0%

Operational Review

compared with 54.6% last year), we had budgeted for an

The Group has made signiﬁcant progress this year in what

increase in gross margin in the second half of the year, but

has been a busy and exciting time.  We have further

as announced on 13 July 2001, this did not come through.

strengthened our position as the UK’s largest ceramic tile

Whilst we continued to enjoy strong margins on tile sales,

specialist.  The Company has continued to expand across

we did experience competitive pressures on our wood

the UK, opening a total of 22 new stores and closing two

ﬂooring products.  We started to increase margins on our

during the year. This gives us a total of 147 trading outlets,

tile sales in the second half, but due to the relatively slow

comprising 121 Topps Tiles stores and 26 Tile Clearing

stock turn in our industry, such margin improvements did

House stores, further strengthening our leading position in

not ﬂow through during the second half. These gains that

the UK market.  

we had expected in the second half are now starting to ﬁlter

through and we expect this to continue to grow steadily

In June 2001 we opened our ﬁrst store in Holland as a pilot,

during this new ﬁnancial year. Earnings per share

to evaluate the market potential in mainland Europe.  It is

increased by 13.0% to 14.8p compared to 13.1p in 2000.  

difﬁcult at this early stage to draw any long-term

Capital expenditure, excluding freehold property, amounted

home improvement retailer MFI, that gives us an

to £4.1m. This reﬂects the cost of ﬁtting 25 new stores at a

opportunity to take space in their stores.  Our ﬁrst in-store

cost of £1.8m (only 22 open and trading in the period) and

Tile Studio by Topps opened in December 2000 and we

the refurbishment of a further 28 stores at a cost of £1.2m.

anticipate rolling out another four concessions this ﬁnancial

We have also updated our store EPoS system at a cost of

year, giving us an increased penetration into the home

conclusions.  We have also entered into an agreement with

£0.6m.

improvements market.  This is an exciting opportunity and

sales to date have been promising.  It is an addition to our

During the year we acquired two freehold properties and

core business that we will monitor closely.

developed a further site at a total cost of £1.3m. We also

disposed of one freehold property with proceeds of £0.8m

Stock levels have reduced from 205 days cover in May

which gave a surplus over net book value of £0.3m.  The

2000 to 187 days cover at the period end, which reﬂects

Group currently owns twelve freehold properties with a net

the continued efforts to achieve efﬁciencies in our stock

book value of £4.3m. 

management.

4

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Current Trading and Prospects

The ceramic tile market remains buoyant and is forecast to

grow further.  Like for like sales for the ﬁrst seven weeks of

the current year are 11% ahead of last year with total sales

up 20%.

We will continue our expansion across the UK, where our

BIG NEWS 

target is for a total of over 350 outlets, and we plan to open

We are conﬁdent that we are well positioned to continue to

24 new outlets during the course of the next ﬁnancial year.

increase both our market share and proﬁtability. Our 

We will assess the results of both the new store in Holland

history of strong ﬁnancial performance and our ability to

and the MFI concessions to determine our future strategy

grow market share in an expanding market should enable

in these two new areas.

us to grow signiﬁcant shareholder value.

Stuart Williams, Chairman

Barry Bester, Chief Executive

55265_6&7  12/9/01  7:43 pm  Page 1

Group Strategy

THE BIG FOUR

Our success has been founded on four crucial

3. Stock Availability

cornerstones:

1. Customer Service

Each store has a huge number of lines in stock, with

replenishments arriving twice a week from our central

warehouses. 80% of our products are imported directly

Customer service is a subject we take very seriously

from factories in Spain, Italy, Portugal and other countries

indeed. All staff attend an induction course at our very own

around the world. Long-standing relationships with our

training centre where they learn our friendly and helpful

suppliers, ensure we maintain good stock availability.

approach to customer service, along with product range

and technical knowledge. Being able to offer correct advice

4.  Store Layout

and assistance is crucial to gaining customer conﬁdence.

All stores are clearly identiﬁed with bright, eye-catching

exterior signage bearing the Topps Tiles or Tile Clearing

In-store, we have a wide range of services to help

House branding. Store interiors are laid out in a mini-

customers choose the right product and achieve the best

warehouse style with a huge choice of products

results. Plus, our tailor-made decor service from our

merchandised with colourful displays and informative 

Leicester-based kiln ﬁring facility allows us to offer a much

point-of-sale.

wider variety of designs than our competitors.

For our customers’ convenience, most of our stores trade 

information clearly displayed.

The stores are customer-friendly with product and pricing

7 days-a-week from 8.00am to 6.00pm, with a number of

larger stores open till 8.00pm. 

2. Store Locations

Our stores in the main are not located on traditional high

streets or retail parks, but in less expensive yet highly

visible locations on or close to busy roads. Our average

store size is around 6,000 square feet and virtually all have

on-site parking areas.

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A selection of Topps customer comments

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Brand Developments - Topps Tiles

Traditionally, the UK has had a very low usage per capita of

We have now used that very same medium to promote

ceramic tiles compared to our European neighbours. This

Topps’ brand values to more consumers than ever before.

trend is now changing with tiles becoming more popular. 

A distinctive 10-second TV commercial featuring our

famous ‘tile man’ ran in the Granada region covering all our

The reason for the continued growth in the market can be

north-west stores.

attributed to many things, including an increase in travel to

countries such as Spain, Italy and Germany where usage

This was in addition to a major sponsorship initiative, which

of tiles is up to 6 times greater per individual. The

saw Topps linked to a home makeover slot on the daytime

growing number of home-improvement programmes

ITV network favourite ‘This Morning’, featuring Richard

on TV, such as ‘Changing Rooms’ have also created a

and Judy. This considerable investment has reaped

great deal of interest in our products.

rewards in vastly increased brand awareness and footfall.

8

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BIG IDEAS

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A BIG HIT

Brand Developments - Tile Clearing House

Tile Clearing House has become a tile brand in

its own right, targeted at a different sector of the market

to Topps. Its customers in the main are jobbing builders,

small contractors and bulk purchasers. It offers a smaller

separate product range including end of lines,

discontinued and job lots, but with greater stock levels.

Tile Clearing House stores operate from less prominent

locations than Topps, mainly in trade areas, but where 

the two brands trade next to each other, both perform well. 

In 2001, the number of stores increased from 18 to 26. 

Tile Clearing House will continue to beneﬁt from strong

advertising campaigns, dominating the local press titles.

11

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Our Role in the Community

BIG IN THE COMMUNITY

We have a policy of building local brand awareness of

Another worthy cause is the National Asthma Campaign

Topps Tiles and Tile Clearing House through involvement

(NAC). This is our third year of support for the charity,

with young people.

which aims to conquer this respiratory disorder affecting

over 1 million children in the UK. The NAC was the natural

Probably our most well-known community project is our

choice of charity for Topps to adopt, as our products help

youth sports sponsorship. Providing new kits and

to reduce the levels of house dust mites which are one of

equipment to juniors in each town where we have a

the triggers of asthma attacks. In addition to a cheque for

presence, has made Topps Tiles one of the biggest

£8,000 donated by Topps, our staff contributed greatly to

supporters of youth football in Britain.

the cause this year by holding sponsored events which

raised a considerable sum.

As well as sport, there’s education. Via our quarterly

product catalogue, schools can win valuable computer

equipment. Since the scheme started, a number of schools

have beneﬁted nationwide.

Gary Cutts, Project Director, presents Fred Cox, aged 8 and his
school Berkswell Primary School, Coventry with brand new
computer equipment.

12

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55265_14&15  12/9/01  7:47 pm  Page 1

Market Prospects

BIG OPPORTUNITIES

also ﬂourishing.

to increase tile sales, while demand for wood ﬂooring is

We are constantly looking for new ways to develop the

The rooms where ceramic tiles are usually found has

business, without compromising on our principles of tight

expanded from traditional ‘wet areas’ such as kitchens and

cost-management and the ability to maintain strong margins.

bathrooms, and now includes halls, cloakrooms and

conservatories. As well as the aesthetic appeal of tiles,

The ceramic tile market remains buoyant, increasing in

consumers are realising that they are probably the most

value in 2000 to £351m at manufacturers’ selling prices and

cost-effective wall or ﬂoor covering available.

is forecast to reach £431m in 2004*. Home improvements

are more popular than ever before and DIY is the fastest

Fashionable, with a long design life, low maintenance and

growing major retail sector in the EU, with British

more hygienic than traditional ﬂoor coverings, ceramic tiles

consumers taking fourth place in the league table of DIY

and wood ﬂooring certainly add value to homes. And as the

spend, behind the Danes, Finns and Germans.**

demand for them grows, Topps Tiles and Tile Clearing

House will be well placed to take advantage of this

Adding a second WC has become more popular for many

increased demand in the future.

owners of older properties and en suite bathrooms are no

*Source: AMA Research Market Report 2000

longer regarded as a luxury. Both offer real opportunities

**Source: Verdict Report 2001

14

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55265_16&17  12/9/01  7:40 pm  Page 1

Directors’ Profiles

Stuart Williams F.C.A. Chairman (aged 57)

Alan McIntosh C.A.

Secretary of Audit Committee

Senior Non-Executive Director (aged 33)

Stuart Williams, a Chartered Accountant, was a founder

Chairman of Audit Committee

shareholder and Director of Topps Tiles in 1984. He

Alan McIntosh qualiﬁed as a Chartered Accountant with

became Executive Deputy Chairman and shareholder of

Deloitte and Touche and subsequently joined the corporate

Multi-Tile in 1987 with responsibility for restructuring the

ﬁnance department of Hill Samuel. He is currently the

company and introducing turnover and proﬁts-related

Finance Director of Punch Group Ltd, the largest

incentive schemes. His principal responsibilities are those

independent pub company in the UK. He is also a Director

of Group Strategy, property and legal matters. In addition,

of Wellington Pub Company Plc and Chairman of the

he is editor of the company’s in-house magazine and is

technology group e-xentric Plc. He joined the board of

responsible for the suggestion scheme.

Topps Tiles in 1997.

Barry Bester Chief Executive (aged 44)

Victor Watson C.B.E. Non-Executive Director (aged 72)

Barry Bester was a founder shareholder and Director of

Member of Audit Committee

Topps Tiles in 1984. As Chief Executive he has overall

Victor Watson is Chairman of Black i Limited and Chairman of

responsibility for the day-to-day operations of the business,

Business Link Leeds Ltd. He is also the former Chairman of

with particular emphasis on sales and store management.

Waddington Plc. He joined the board of Topps Tiles in 1997.

He is also responsible for new business development.

Rt Hon Michael Jack Privy Councillor, MP

Nicholas Ounstead Customer Services and 

Non-Executive Director (aged 55)

Marketing Director (aged 40)

Member of Audit Committee

Nicholas Ounstead joined Topps Tiles in April 1997.

Michael Jack’s business career has seen him in

Prior to this he was Marketing Director at Bellegrove

management capacities with Proctor & Gamble and 

Ceramics Plc which is a major supplier to DIY chains

Marks & Spencer. In 1987 he became MP for Fylde and by

and independent retailers including Topps Tiles. 

1990 had begun a ministerial career that saw him serve in

He is responsible for customer service training and 

the DSS, Home Ofﬁce, MAFF and ﬁnally the Treasury as

product marketing as well as Chairman of the Health

Financial Secretary. Since that time he has maintained

and Safety Committee.

strong business links via his consultancy work. He joined

the board of Topps Tiles in 1999. 

Andrew Liggett F.C.M.A. Finance Director (aged 39)

Andrew Liggett joined Topps Tiles in 1995 as Finance

Director. Prior to joining the Group, he worked for Gold

Crown Group Limited where he was employed for 10 years,

initially as a management accountant and then as Finance

Director. He is responsible for the accounting, ﬁnancial

control, company secretarial matters, treasury and

administration.

16

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From left to right: Andrew Liggett, 
Stuart Williams, Mr Topps, 
Barry Bester, Nicholas Ounstead.

55265_P18 53  12/9/01  7:17 pm  Page 1

DIRECTORS & ADVISORS

DIRECTORS

S.K.M. Williams F.C.A. Chairman

B.F.J. Bester Chief Executive

A. Liggett F.C.M.A. Finance Director

N.D. Ounstead Customer Services and Marketing Director

W.A. McIntosh C.A. Senior Non-Executive Director

V.H. Watson C.B.E. Non-Executive Director

The RT. Hon. J.M. Jack, Privy Counsellor, MP Non-Executive Director

SECRETARY

A. Liggett F.C.M.A.

REGISTERED NUMBER

3213782

REGISTERED OFFICE

Rushworth House 

Wilmslow Road 

Handforth 

Cheshire 

SK9 3HJ 

18

AUDITORS

Arthur Andersen 

Bank House

9 Charlotte Street

Manchester M1 4EU

BANKERS

HSBC Bank Plc

56 Queen Street

Cardiff  CF1 4PX

REGISTRARS

Capita IRG Plc

Balfour House

390 - 398 High Road

Ilford

Essex IG1 1BR

SOLICITORS

TLT Solicitors

Bush House

72 Prince Street

Bristol BS99 7JZ

Sinclair Abson Smith

30 Greek Street

Bank House 

Stockport SK3 8AD

STOCKBROKERS

SG Securities (London) Limited

Exchange House

Primrose Street

Broadgate

London EC2A 2DD

55265_P18 53  12/9/01  7:17 pm  Page 2

DIRECTORS’ REPORT

for the period ended 2 June 2001

The directors present their report on the affairs of the Group, together with the accounts and auditors’
report, for the period ended 2 June 2001.

Principal activity and business review

Share capital

The principal activity of the Group comprises the retail and

Details of the Company’s authorised and issued share capital

wholesale distribution of ceramic tiles, wood ﬂooring and related

are shown in note 19 to the accounts.

products. Details of the Group’s performance during the period

and expected future developments are contained in the Joint

Supplier payment policy

Statement by the Chairman and Chief Executive on pages 4 to 5

The Group’s policy is to settle terms of payment with suppliers

of the report and accounts.

when agreeing the terms of each transaction, ensuring that

suppliers are made aware of the terms of payment and that both

Results and dividends

parties abide by those terms.

The audited accounts for the period ended 2 June 2001 are set

The effect of the Group’s negotiated payment policy is that trade

out on pages 25 to 50. The Group’s proﬁt for the period, after

creditors at the period end represented 66 days purchases

taxation was £6,547,000.

(2000 -  80 days).  

An interim dividend of 1.15 pence per share (£515,000) was

Charitable and political contributions

paid on 28 February 2001.

During the period the Group made charitable donations of

£50,000 to "Help a London Child Charity" and £8,000 to "The

The directors recommend a ﬁnal dividend of 3.85 pence per

National Asthma Campaign". The Group made no political

share (£1,725,000) making a total of £2,240,000 for the period

contributions.

ended 2 June 2001.  Subject to approval by the shareholders at

the Annual General Meeting to be held on 11 September 2001,

Substantial shareholdings

the ﬁnal dividend will be paid on 1 October 2001 to

In addition to the directors’ shareholdings noted on page 32, 

shareholders on the register at the close of business on 

on 2 June 2001 the Company had been notiﬁed, in accordance

7 September 2001.

Directors

with Sections 198 to 208 of the Companies Act 1985, of the

following interests in 3% or more of its issued share capital.

The directors of the Company are as follows:

Chase Nominees Limited 

S.K.M. Williams                               

Chairman

(including Client account)

B.F.J. Bester                                                   Chief Executive

Littledown Nominees Limited

A. Liggett                                        

Finance Director

HSBC Global Custody 

N.D. Ounstead

Customer Services & Marketing Director

Nominee  (UK) Limited

W.A. McIntosh                       Senior Non-Executive Director

Stanlife Nominees Limited

V.H. Watson                           

Non-Executive Director

RBSTB Nominees Limited

J.M. Jack                                           Non-Executive Director

Arnold and S. Bleichroeder

Their interests in the shares of the Company are set out in note

4(c) to the accounts.

Number

5,803,700

% held

13.0%

3,580,000

3,251,514

3,198,293

2,503,961

2,256,313

8.0%

7.3%

7.1%

5.6%

5.0%

19

55265_P18 53  12/9/01  7:17 pm  Page 3

DIRECTORS’ REPORT

Disabled employees

Auditors

Applications for employment by disabled persons are always

The directors will place a resolution before the annual general

fully considered, bearing in mind the aptitudes of the applicant

meeting to reappoint Arthur Andersen as auditors for the

concerned.  In the event of members of staff becoming disabled

ensuing period.

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

By order of the Board,

and promotion of disabled persons should, as far as possible,

A. Liggett, Secretary

be identical with that of other employees.

17 August 2001

Employee consultation

The Group places considerable value on the involvement of its

Rushworth House 

employees and has continued to keep them informed on

Wilmslow Road

matters affecting them as employees and on the various factors

Handforth

affecting the performance of the Group. This is achieved

through formal and informal meetings and the company

Cheshire

SK9 3HJ

magazine.  Employee representatives are consulted regularly

on a wide range of matters affecting their current and future

interests.

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.

During the period, the Company has introduced a further

employee Sharesave Scheme.  The directors intend to

introduce another Sharesave Scheme in the new ﬁnancial

period.

20

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CORPORATE GOVERNANCE STATEMENT

In June 1998 the Hampel Committee and the London Stock

Dialogue with institutional shareholders

Exchange published the Combined Code on corporate

The directors seek to build on a mutual understanding of

governance.  This combines the Cadbury Code on corporate

objectives between the Company and its institutional

governance, the Greenbury Code on directors’ remuneration

shareholders by making annual presentations and

and new requirements arising from the ﬁndings of the Hampel

communicating regularly throughout the year.

Committee.

Maintenance of a sound system of internal control

Statement of compliance with the Code of Best Practice

The board has applied Principle D.2 of the Combined Code by

The Company has complied throughout the period with the

establishing a continuous process for identifying, evaluating and

Provisions of the Code of Best Practice set out in section 1 of

managing the signiﬁcant risks the group faces.  The board

the Combined Code except for code provisions A1.2, A1.3, A5.1

regularly reviews the process, which has been in place from the

and A6.1.  The board considers this non-compliance with the

start of the year to the date of the approval of this report and

Combined Code to be justiﬁed in view of the size of the Group

which is in accordance with Internal Control: Guidance for

and in this respect supports the recommendations of the City

Directors on the Combined Code published in September 1999.

Group for smaller companies.  The Company complies with all

The board is responsible for the Group’s system of internal

other provisions of the code.

control and for reviewing its effectiveness.  Such a system is

designed to manage rather than eliminate the risk of failure to

Code Provision D.3.1 requires the members of the audit

achieve business objectives and can only provide reasonable

committee to be named in the report and accounts.  Mr. W.A.

and not absolute assurance against material misstatement 

McIntosh (Chairman), Mr. V.H. Watson and Mr. J.M. Jack have

or loss.

served on the committee throughout the period.

In compliance with Provision D.2.1 of the Combined Code, the

Statement about applying the Principles of Good

board continuously reviews the effectiveness of the Group’s

Governance

system of internal control.  The board’s monitoring covers all

The Company has applied the Principles of Good Governance

controls, including ﬁnancial, operational and compliance

set out in section 1 of the Combined Code by complying with

controls and risk management.  It is based principally on

the Code of Best Practice as reported above.  Further

reviewing reports from management to consider whether

explanation of how the Principles have been applied in

signiﬁcant risks are identiﬁed, evaluated, managed and

connection with directors’ remuneration is set out in the

controlled and whether any signiﬁcant weaknesses are promptly

Remuneration Report.

remedied and indicate a need for more extensive monitoring.

The board has also performed a speciﬁc assessment for the

purpose 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.

21

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REMUNERATION REPORT

for the period ended 2 June 2001

As well as complying with the provisions of the Code as

Share incentives

disclosed in the Company’s Corporate Governance Statements,

Prior to ﬂotation the Group did not have any form of approved or

the Company has applied the Principles of Good Governance

unapproved executive share incentive arrangements.  The share

relating to directors’ remuneration as described below.

option scheme comprises two parts, the Topps Tiles Plc

Remuneration committee

approved Executive Share Option Scheme and the Topps Tiles

Plc unapproved Executive Share Option Scheme.  The scheme

The remuneration committee is comprised solely of the three

is administered and the grant of options supervised by the

independent non-executive directors.

remuneration committee.  The exercise of options will normally

be conditional on the achievement of a speciﬁed performance

Statement of remuneration policy and details of

target determined by the remuneration committee, who will

remuneration

have regard to guidelines on share option schemes issued by

The Company’s policy on executive director remuneration is as

institutional investors.

follows:

The remuneration of executive directors is determined by the

announcement by the Company of its interim or ﬁnal results

remuneration committee, whose aim is to reward executive

each period, with the exercise price being not less than the

directors competitively.  The emoluments of directors comprise

middle market quotation averaged over the three dealing days

a basic salary, executive share options and normal employment

immediately preceding the date of the grant.

Options may normally only be granted within 42 days of the

beneﬁts including corporate contributions towards a pension

entitlement.

Full details of the remuneration packages of individual directors

and information on share options are set out in note 4(b) and

The remuneration of non-executive directors is determined by

4(d) to the accounts.

the board as a whole, based on outside advice and review of

current practices in other companies.

Pensions

The details of the corporate pension arrangements are

explained in note 23(b).

Service contracts

New service contracts have been entered into by the executive

directors on 1 June 2001 for a period of 12 months.

22

55265_P18 53  12/9/01  7:17 pm  Page 6

DIRECTORS’ RESPONSIBILITIES

Accounts, including adoption of going concern basis

Other matters

Company law requires the directors to prepare accounts for

The directors are responsible for keeping proper accounting

each ﬁnancial period which give a true and fair view of the state

records which disclose with reasonable accuracy at any time

of affairs of the Company and Group and of the proﬁt or loss of

the ﬁnancial position of the Company and Group and to enable

the Group for that period.

them to ensure that the accounts comply with the Companies

Act 1985.  They are also responsible for safeguarding the assets

After making enquiries, the directors have a reasonable

of the Company and Group and hence for taking reasonable

expectation that the Company and the Group have adequate

steps for the prevention and detection of fraud and other

resources to continue in operational existence for the

irregularities.

foreseeable future.  For this reason they continue to adopt the

going concern basis in preparing the accounts. 

In preparing the accounts the directors are required to select

suitable accounting policies and then apply them consistently;

make judgements and estimates that are reasonable and

prudent;  and state whether applicable accounting standards

have been followed, subject to any material departures

disclosed and explained in the accounts.

23

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AUDITORS’ REPORT

Independent Auditors' Report to the Shareholders of Topps
Tiles Plc:
We have audited the accounts of Topps Tiles Plc for the period
ended 2 June 2001 which comprise the Proﬁt and Loss Account,
the Balance Sheet, the Cash Flow Statement and the related
Notes numbered 1 to 23. These accounts have been prepared
under the accounting policies set out therein. 

Respective responsibilities of directors and auditors
The directors' responsibilities for preparing the Annual Report and
the accounts in accordance with applicable law and United
Kingdom accounting standards are set out in the Statement of
Directors' Responsibilities.  Our responsibility is to audit the
accounts in accordance with relevant legal and regulatory
requirements, United Kingdom Auditing Standards and the
Listing Rules of the Financial Services Authority.

We report to you our opinion as to whether the accounts give a
true and fair view and are properly prepared in accordance 
with the Companies Act 1985.  We also report to you if, in our
opinion, the Directors’ Report is not consistent with the
accounts, if the Company has not kept proper accounting
records, if we have not received all the information and
explanations we require for our audit, or if information speciﬁed
by law or the Listing Rules regarding directors’ remuneration
and transactions with the Company and other members of the
Group is not disclosed.

We review whether the Corporate Governance Statement
reﬂects the Company's compliance with the seven provisions 
of the Combined Code speciﬁed for our review by the Listing
Rules, and we report if it does not.  We are not required to
consider whether the board's statements on internal control
covers all risks and controls, or form an opinion on the
effectiveness of the Group's corporate governance procedures
or its risk and control procedures.  

We read the other information contained in the Annual Report,
including the Corporate Governance Statement, and consider
whether it is consistent with the audited accounts.  This other

24

information comprises only the Directors' Report, the Joint
Statement by the Chairman and Chief Executive and the
Corporate Governance Statement.  We consider the
implications for our report if we become aware of any apparent
misstatements or material inconsistencies with the accounts.
Our responsibilities do not extend to any other information.

Basis of audit opinion
We conducted our audit in accordance with United Kingdom
Auditing Standards issued by the Auditing Practices Board.  An
audit includes examination, on a test basis, of evidence relevant
to the amounts and disclosures in the accounts.  It also includes
an assessment of the signiﬁcant estimates and judgments made
by the directors in the preparation of the accounts and of
whether the accounting policies are appropriate to the
circumstances of the Company and of the Group, consistently
applied and adequately disclosed.

We planned and performed our audit so as to obtain all the
information and explanations which we considered necessary in
order to provide us with sufﬁcient evidence to give reasonable
assurance that the accounts are free from material
misstatement, whether caused by fraud or other irregularity or
error.  In forming our opinion we also evaluated the overall
adequacy of the presentation of information in the accounts.

Opinion
In our opinion the accounts give a true and fair view of the state
of affairs of the Company and of the Group at 2 June 2001 and
of the Group's proﬁt and cash ﬂows for the period then ended
and have been properly prepared in accordance with the
Companies Act 1985.

Arthur Andersen
Chartered Accountants and Registered Auditors
Bank House
9 Charlotte Street
Manchester
M1 4EU
17 August 2001

55265_P18 53  12/9/01  7:17 pm  Page 8

CONSOLIDATED PROFIT & LOSS ACCOUNT

for the period ended 2 June 2001

Turnover

Cost of sales

Gross proﬁt

Operating expenses

- employee proﬁt sharing

- other operating expenses

Operating proﬁt before exceptional costs

- exceptional costs

Operating Proﬁt

Interest receivable and similar income

Interest payable and similar charges

Proﬁt on ordinary activities before taxation

Tax on proﬁt on ordinary activities

Proﬁt on ordinary activities after taxation

Dividends

Transfer to reserves

Earnings per ordinary share

- basic

- basic adjusted

- diluted

There are no recognised gains or losses in either period other than the proﬁt for that ﬁnancial period.  

A statement of movements on reserves is given in note 20.

The accompanying notes are an integral part of this consolidated proﬁt and loss account.

Note

2

3

5

6

7

8

9

20

10

10

10

2001

£’000

74,642

(33,552

)

41,090

(2,266

(29,187

)
)

9,637

-

9,637

84

(307

)

9,414

(2,867

)

6,547

(2,245

)

4,302

14.8p

14.8p

14.6p

2000

£’000

62,614

(28,443

)

34,171

(1,959

(23,963

)
)

8,935

(686

)

8,249

17

(248

)

8,018

(2,487

)

5,531

(1,844

)

3,687

13.1p

14.2p

12.5p

25

55265_P18 53  12/9/01  7:17 pm  Page 9

BAL ANCE SHEETS

at 2 June 2001

Fixed assets

Goodwill

Tangible assets

Investments

Current assets

Stocks

Debtors

Cash at bank and in hand

Creditors: Amounts falling 

due within one year

Net current assets 

Total assets less current liabilities

Creditors: Amounts falling due 

after more than one year

Provisions for liabilities and charges

Net assets

Capital and reserves

Called-up share capital

Share premium

Merger reserve

Special reserve

Proﬁt and loss account

Equity shareholders’ funds 

Notes

11

12

13

14

15

16

18

19

20

20

20

2001

£’000

302

16,236

-

16,538

17,293

4,678

2,206

24,177

(18,707

)

5,470

22,008

(2,446

)

(893

)

18,669

5,601

1,005
)
(399

-

12,462

18,669

Group

Company

2000

£’000

320

12,918

-

13,238

15,948

2,945

435

19,328

(16,003

)

3,325

16,563

(2,716

)

(665

)

13,182

5,309

112

(399

)

-

8,160

13,182

2001

£’000

-

-

14,652

14,652

-

6,613

5,382

11,995

(3,858

)

8,137

22,789

-

-

22,789

5,601

1,005

-

14,917

1,266

22,789

2000

£’000

-

-

14,640

14,640

-

2,751

4,758

7,509

(1,494

)

6,015

20,655

-

-

20,655

5,309

112

-

14,917

317

20,655

The accounts on pages 25 to 50 were approved by the board of directors on 17 August 2001 and signed on its behalf by:

S.K.M. Williams

B.F.J. Bester

Directors

17 August 2001

The accompanying notes are an integral part of these balance sheets.

26

55265_P18 53  12/9/01  7:17 pm  Page 10

CONSOLIDATED CASH FLOW STATEMENT

for the period ended 2 June 2001

Net cash inﬂow from operating activities

Returns on investments and servicing of ﬁnance

Taxation

Capital expenditure 

Acquisition and disposals

Equity dividends

Cash inﬂow (outﬂow) before ﬁnancing

Financing

Increase (decrease) in cash in the period

The accompanying notes are an integral part of this consolidated cash ﬂow statement.

Notes

22(a)

22(b)

22(c)

22(d)

22(e)

22(f )

2001

£’000

11,019

(231
)
(2,849

)

(4,834

)

-

(1,934

)

1,171

600

1,771

2000

£’000

7,505

(223
)
)
(1,754

(4,147

)
(219
)
)
(1,489

(327

)

52

(275

)

27

55265_P18 53  12/9/01  7:17 pm  Page 11

NOTES TO THE ACCOUNTS

for the period ended 2 June 2001

1 Accounting policies

The principal accounting policies are summarised below.  They have all been applied consistently throughout the period and the

preceding period:

a) Basis of accounting

The accounts have been prepared under the historical cost convention and in accordance with applicable accounting standards.

b) Basis of consolidation

The statutory Group proﬁt and loss account and balance sheet consolidate the accounts of Topps Tiles Plc and its subsidiary

undertakings made up to 2 June 2001.  The accounts of Topalpha Limited have been consolidated using merger accounting

principles.  In all other cases subsidiary undertakings have been accounted for using acquisition accounting principles.

The results of subsidiaries acquired or sold are consolidated for the periods from or to the date on which control passed.  

No proﬁt and loss account is presented for Topps Tiles Plc, as permitted by S230 of the Companies Act  1985.  The Company’s proﬁt

after tax for the period, determined in accordance with the Act, was £3,194,000 (2000 - £1,882,000).

c) Financial periods

The accounting period ends on the Saturday which falls closest to 31 May, resulting in ﬁnancial periods of either 52 or 53 weeks.

d) Goodwill

Goodwill arising on the acquisition of subsidiary undertakings and businesses, representing any excess of the fair value of the

consideration given over the fair value of the identiﬁable assets and liabilities acquired, is capitalised and written off on a straight line

basis over its useful economic life, which is twenty years.  Provision is made for any impairment.

Goodwill arising on acquisitions in the period ended 30 May 1998 and earlier periods was written off to reserves in accordance with

the accounting standard then in force.  As permitted by the current accounting standard the goodwill previously written off to

reserves has not been reinstated in the balance sheet.  On disposal or closure of a previously acquired business, the attributable

amount of goodwill previously written off to reserves is included in determining the proﬁt or loss on disposal.

e) Turnover

Turnover comprises the net amount receivable in respect of sales during the period to third parties and excludes value added tax.

28

55265_P18 53  12/9/01  7:17 pm  Page 12

NOTES TO THE ACCOUNTS

1 Accounting policies (continued)

f) Tangible ﬁxed assets

Tangible ﬁxed assets are stated at cost, net of depreciation and any provision for impairment.  Costs, are only those costs, that are

directly attributable to bringing the asset into working condition for its intended use.  Depreciation is provided to write off the cost of

tangible assets over their estimated useful lives as follows:

Freehold buildings

Short leasehold land and buildings

Fixtures and ﬁttings

Motor vehicles

-

-

-

-

2% per annum on cost

over the period of the lease, up to 25 years

over 10 years or at 25% per annum on reducing balance basis as appropriate.

25% per annum on reducing balance

g) Stocks

Stocks are stated at the lower of cost and net realisable value.  Cost includes materials and an attributable proportion of distribution

overheads based on normal levels of activity.  Net realisable value is based on estimated selling price, less further costs expected to

be incurred to completion and disposal.

h) Taxation

Current tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or

substantially enacted by the balance sheet date.

Deferred taxation is provided using the liability method on all timing differences only to the extent that they are expected to reverse in

the future without being replaced.

i) Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction, or if hedged, at the forward

contract rate.  Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of

exchange prevailing at that date, or if appropriate at the forward contract rate.

Any gain or loss arising from a change in exchange rates subsequent to the date of the transaction is included as an exchange gain

or loss in the proﬁt and loss account.

j) Leases

Assets held under ﬁnance leases and other similar contracts, which confer rights and obligations similar to those attached to owned

assets, are capitalised as tangible ﬁxed assets and are depreciated over the shorter of the lease terms and their useful lives.  The

capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the proﬁt and loss

account over the period of the leases to produce a constant rate of charge on the balance of capital repayments outstanding.  Hire

purchase transactions are dealt with similarly, except that assets are depreciated over their useful lives.

29

55265_P18 53  12/9/01  7:17 pm  Page 13

NOTES TO THE ACCOUNTS

1 Accounting policies (continued)

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such

a basis.  Beneﬁts received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over

the lease term, except where the period to the review date on which the rent is ﬁrst expected to be adjusted to the prevailing market

rate is shorter than the full lease term, in which case the shorter period is used.

k) Investments

Fixed asset investments are shown at cost less provision for impairment.

l) Pension costs

For deﬁned contribution schemes the amount charged to the proﬁt and loss account 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. 

m) Derivative ﬁnancial instruments

The Group uses derivative ﬁnancial instruments to reduce exposure to foreign exchange risk.  The Group does not hold or issue

derivative ﬁnancial instruments for speculative purposes.

For a forward foreign exchange contract to be treated as a hedge, the instrument must be related to actual foreign currency assets

or liabilities or to a probable commitment.  It must involve the same currency or similar currencies as the hedged item and must also

reduce the risk of foreign currency exchange movements on the Group’s operations.  Gains and losses arising on these contracts

are deferred and recognised in the proﬁt and loss account, only when the hedged transaction has itself been reﬂected in the Group’s

accounts.

If an instrument ceases to be accounted for as a hedge, for example, because the underlying hedged position is eliminated, the

instrument is marked to market and any resulting proﬁt or loss recognised at that time.

n) Finance costs

Finance costs of debt are recognised in the proﬁt and loss account over the term at a constant rate on the carrying amount. 

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.

30

55265_P18 53  12/9/01  7:17 pm  Page 14

NOTES TO THE ACCOUNTS

2 Turnover

Turnover and proﬁt before taxation are attributable to one activity, the retail and wholesale distribution of ceramic tiles, wood flooring

and related products, and arise within the UK.

3 Operating expenses

Distribution costs 

Administrative expenses

Employee proﬁt sharing

2001

£’000

23,545

5,642

2,266

31,453

Included in operating expenses for the period ended 3 June 2000 are exceptional costs of £686,000 (see note 5)

4 Staff costs

a) Staff costs

Particulars of employees (including directors) are as shown below:

Employee costs during the period amounted to:

Wages and salaries

Social security costs 

Other pension costs (note 23b)

The average monthly number of persons employed by the Group during the period was as follows:

Selling

Administration

2001

£’000

12,741

1,169

129

14,039

2001

Number

employed

800

141
941

2000

£’000

18,600

5,363

1,959

25,922

2000

£’000

8,793

915

200

9,908

2000

Number

employed

657

122
779

31

55265_P18 53  12/9/01  7:17 pm  Page 15

NOTES TO THE ACCOUNTS

4 Staff costs (continued)

b) Directors emoluments

The emoluments of the directors of the Company are as follows:

Fees

Basic

salary

Taxable

beneﬁts

Money

purchase

pension

contributions

£’000

£’000

£’000

£’000

Total

2001

£’000

Total

2000

£’000

Executive

S.K.M. Williams

B.F.J. Bester

A. Liggett

N.D. Ounstead

Non-executive

W.A. McIntosh

V.H. Watson

J.M. Jack

Aggregate emoluments

-

-

-

-

15

15

-

30

120

140

120

90

-

-

15

485

18

13

13

10

-

-

-

54

-

6

5

4

-

-

-

15

138

159

138

104

15

15

15

584

c) Directors’ interests

The directors had the following interests in the shares of the Company:

S.K.M. Williams

B.F.J. Bester

A. Liggett

N.D. Ounstead

W.A. McIntosh

V.H. Watson

J.M. Jack

32

2001

Ordinary

shares of

12.5p each

5,577,720

5,757,720

500,300

98,700

467,000

37,200

3,000

124

134

121

93

15

15

15

517

2000

Ordinary

shares of

12.5p each

5,827,720

5,757,720

500,300

98,700

467,000

40,000

3,000

55265_P18 53  12/9/01  7:17 pm  Page 16

4 Staff costs (continued)

d) Directors share options

Details of directors’ share options are as follows:

NOTES TO THE ACCOUNTS

Executive

S.K.M. Williams

B.F.J. Bester

A. Liggett

A. Liggett

N.D. Ounstead

N.D. Ounstead

Non-executive

W.A. McIntosh

Granted

Exercised

At 2nd June
2001

Exercise 
price

At 3rd June
2000

210,000

600,000

420,000

-

-

-

(210,000)

(600,000)

(420,000)

-

-

-

-

300,000

-

300,000

280,000

-

(280,000)

-

-

225,000

-

225,000

Market 
price at date
of exercise
297.5p

297.5p

297.5p

Option
exercisable
from

Expiry
date

-

-

-

-

-

-

-

06/09/03

05/09/07

297.5p

-

-

-

06/09/03

05/09/07

50p

50p

50p

301p

50p

301p

600,000

-

(600,000)

-

50p

297.5p

-

-

No options lapsed during the year.  The market price of the Company’s shares at the end of the period was 329.5p per share and

ranged during the period from 246.0p to 350.5p per share. 

There have been no changes in the directors’ interests in share options subsequent to the end of the period.

33

55265_P18 53  12/9/01  7:17 pm  Page 17

NOTES TO THE ACCOUNTS

5 Exceptional costs

Discontinued activities

Tile City stock acquisition costs

2001

£’000

-

-

-

2000

£’000
431
255

686

During the period ended 3 June 2000 further bathroom areas were removed from existing Topps Tiles stores.  The directors also took

the decision to write off unsaleable stock, acquired from the receivers of ‘Tile City’, as part of the total stock purchased.

6 Interest payable

Bank loans and overdrafts

Finance leases and hire purchase contracts

Interest costs capitalised

2001

£’000

307

14

(14

)

307

2000

£’000

311

8

(71
)
248

34

55265_P18 53  12/9/01  7:17 pm  Page 18

NOTES TO THE ACCOUNTS

7 Proﬁt on ordinary activities before taxation

Proﬁt on ordinary activities before taxation is stated after charging (crediting):

Depreciation and amounts written off tangible ﬁxed assets

- owned

- held under ﬁnance leases and hire purchase contracts

Amortisation of goodwill

Proﬁt on disposal of tangible ﬁxed assets

Operating lease rentals

- other

- plant and machinery

Remuneration to auditors

- audit services

- other services

2001

£’000

1,435

39

18

(344

)

6,657

391

35

20

2000

£’000

1,070

-

12

(243

)

5,405

260

32

22

35

55265_P18 53  12/9/01  7:17 pm  Page 19

NOTES TO THE ACCOUNTS

8 Tax on proﬁt on ordinary activities

The tax charge comprises:

Corporation tax 

Deferred taxation

9 Dividends

Under provision in respect of 2000 ﬁnal dividend

Interim paid 1.15p (2000 – 1.00p) per ordinary share

Final proposed 3.85p (2000 – 3.33p) per ordinary share

Total 5.00p (2000 – 4.33p) per ordinary share

2001

£’000

2,639

228

2,867

2001

£’000

5

515

1,725

2,245

2000

£’000

2,117

370

2,487

2000

£’000

-

430

1,414

1,844

36

55265_P18 53  12/9/01  7:17 pm  Page 20

NOTES TO THE ACCOUNTS

10 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 as follows:

Weighted average number of shares:

For basic earnings per share

Weighted average of shares under option

Number of shares that would have been issued at fair value

For diluted earnings per share

2001

2000

Number of

Number of

shares

shares

44,218,175

42,363,163

2,802,600

2,750,380

(2,219,604

)

(729,129

)

44,801,171

44,384,414

An adjusted earnings per share ﬁgure has been shown in order to achieve comparability period on period.  The calculation uses the

basic weighted average number of shares together with basic earnings adjusted to exclude the impact of exceptional items.

Proﬁt on ordinary activities after tax

Exceptional items

Less notional tax

Basic

Adjusted

2001

£’000

6,547

-

-

2000

£’000

5,531

-

-

2001

£’000

6,547

-

-

Proﬁt attributable to equity shareholders

6,547

5,531

6,547

2000

£’000

5,531

686

(206

)

6,011

37

55265_P18 53  12/9/01  7:18 pm  Page 21

NOTES TO THE ACCOUNTS

11 Goodwill

Cost

Beginning and end of period 

Depreciation

Beginning of period

Charge for the period

End of period

Net book value

Beginning of period

End of period

Total

£’000

338

18

18

36

320

302

38

55265_P18 53  12/9/01  7:18 pm  Page 22

12 Tangible ﬁxed assets

Cost

Beginning of period 

Additions

Disposals

End of period

Depreciation

Beginning of period

Charge

Disposals

End of period

Net book value

Beginning of period

End of period

NOTES TO THE ACCOUNTS

Land and

buildings

Freehold

£’000

Short

Leasehold

£’000

3,563

1,341

(502

)

4,402

77

76

(32

)

121

3,486

4,281

1,023

70

-

1,093

189

150

-

339

834

754

Fixtures

and

ﬁttings

£’000

9,742

3,720

-

13,462

1,382

1,183

-

2,565

8,360

10,897

Motor

vehicles

£’000

259

260

(202

)

317

21

65

(73

)

13

238

304

Total

£’000

14,587

5,391

(704

)

19,274

1,669

1,474

(105

)

3,038

12,918

16,236

The net book value of tangible ﬁxed assets includes £505,000 (2000 - £308,000) in respect of assets held under hire purchase contracts.

Cumulative ﬁnance costs capitalised included in the cost of tangible ﬁxed assets amount to £85,000 (2000 - £71,000).

39

55265_P18 53  12/9/01  7:18 pm  Page 23

NOTES TO THE ACCOUNTS

13 Fixed asset investments

Beginning of period

Additions

End of period

Company

£’000

14,640

12

14,652

During the year Topps Tiles Plc acquired 100% of the ordinary share capital of Topps Tiles Holland BV, an off the shelf Dutch company.

Net assets of the company on acquisition were £12,000.

The principal subsidiary undertakings are as follows:

% of

issued

shares held

Principal activity

Topalpha Limited

Multi-Tile Limited

100%

100%

Property development and investment

Retail and wholesale distribution of ceramic tiles, wood ﬂooring 

and related products

With the exception of Topps Tiles Holland BV, all subsidiary undertakings are incorporated in Great Britain and are registered and

operate in England and Wales.  The investments are represented by ordinary shares.

40

55265_P18 53  12/9/01  7:18 pm  Page 24

14 Debtors

Amounts falling due within one year:

Trade debtors

Amounts owed by subsidiary undertaking

Other debtors

Prepayments and accrued income

NOTES TO THE ACCOUNTS

Group

Company

2000

£’000

547

-

978

1,420

2,945

2001

£’000

-

6,586

12

15

2000

£’000

-

2,721

12

18

6,613

2,751

2001

£’000

619

-

2,473

1,586

4,678

41

55265_P18 53  12/9/01  7:18 pm  Page 25

NOTES TO THE ACCOUNTS

15 Creditors: Amounts falling due within one year

Group

Company

Obligations under ﬁnance leases and hire purchase contracts

Bank loans and overdraft (note 17)

Trade creditors

Other creditors

Corporation tax

Proposed dividend

Accruals and deferred income

16 Creditors: Amounts falling due after more than one year

Obligations under ﬁnance leases and hire purchase contracts

Bank loan

2001

£’000

175

285

2000

£’000

260

281

10,799

10,317

3,235

1,488

1,725

1,000

1,093

1,698

1,414

940

18,707

16,003

2001

£’000

-

-

19

2,083

7

1,725

24

3,858

2001

£’000

9

2,437

2,446

Group

2000

£’000

-

-

32

-

9

1,414

39

1,494

2000

£’000

15

2,701

2,716

The maturity proﬁle of the Group’s loans, ﬁnance leases and hire purchase contracts is presented in note 17.

42

55265_P18 53  12/9/01  7:18 pm  Page 26

NOTES TO THE ACCOUNTS

17 Derivatives and other ﬁnancial instruments

The Group holds ﬁnancial instruments to ﬁnance its operations, and to manage interest rate and currency risks arising from its

operations.

Consequently the main risks arising from the Group’s operations are liquidity risk, interest rate risk and currency risk.

Liquidity risk

The Group’s objective is to maintain continuity of funding through the use of retained proﬁts and medium to long term borrowings.  The

maturity proﬁle of the Group’s borrowings are detailed in section (c) of this note.

Interest rate risk

The Group’s objective is to manage the exposure to interest rate ﬂuctuations whilst trying to minimise the cost of capital of the Group.

Given the recent underlying downward trend in long term interest rates, the board has chosen not to adopt any ﬁxed rates, as it

believes that interest rates will continue to fall in the foreseeable future.

Currency risk

The Group has transactional currency exposures which arise from purchases by subsidiary undertakings in currencies other than the

functional currency of the Group.  The Group’s policy is to periodically use forward contracts to hedge those transactions to eliminate

any signiﬁcant currency exposure.  The frequency and amount hedged is decided by the board and depends upon the magnitude of

the exposure and volatility of the currency involved. 

The numerical disclosures in this note deal with ﬁnancial assets and ﬁnancial liabilities as deﬁned in Financial Reporting Standard 13

"Derivatives and other ﬁnancial instruments: Disclosures" (FRS 13).  Certain ﬁnancial assets such as investments in subsidiary and

associated companies are also excluded from the scope of these disclosures.

As permitted by FRS 13, short term debtors and creditors have been excluded from the disclosures, other than the currency

disclosures.

43

55265_P18 53  12/9/01  7:18 pm  Page 27

NOTES TO THE ACCOUNTS

17 Derivatives and other ﬁnancial instruments (continued)

a) Interest rate proﬁle

The Group has no ﬁnancial assets other than sterling cash deposits of £2,206,000 (2000 - £435,000) which are part of the ﬁnancing

arrangements of the Group.  The sterling cash deposits comprise deposits placed on money market at call.

The interest rate proﬁle of the Group’s ﬁnancial liabilities is as follows:

Sterling - Borrowings

Loan 1

Loan 2

Loan 3

Total

Floating rate

2001

£’000 %

2000

£’000 %

627,000 1.0

324,000 1.0

765,000 1.5

390,000 1.5

1,771,000 1.5

1,827,000 1.5

2,722,000

2,982,000

The interest rate on ﬂoating rate ﬁnancial liabilities indicates the excess over bank base rate.

Loans 1 and 2 are secured by ﬁxed charges over the Group’s leasehold property and by ﬂoating charges over all other assets of the

Group.

Loan 3 is secured by a legal mortgage over the freehold properties and the goodwill of the business.

b) Currency exposures

The table below shows the Group’s currency exposures; in other words, those transactional exposures that give rise to the net

currency gains and losses recognised in the proﬁt and loss account.  Such exposures comprise monetary liabilities of the Group that

are not denominated in the “functional” currency of the Group.  As at 2 June 2001 these exposures were as follows:

Functional currency
of the Group:

Sterling

Net foreign currency 
monetary liabilities

2001

Euro

£’000

104

2000

Euro

£’000

109

The amounts shown in the tables above take into account the effect of forward contracts entered into to manage these currency

exposures. 

44

55265_P18 53  12/9/01  7:18 pm  Page 28

NOTES TO THE ACCOUNTS

17 Derivatives and other ﬁnancial instruments (continued)

c) Maturity of ﬁnancial liabilities

The maturity proﬁle of the Group’s ﬁnancial liabilities was as follows:

In one year or less

In more than one year but not more than two years

In more than two years but not more than ﬁve years

In more than ﬁve years

Total

d) Borrowing facilities

Hire purchase contracts

Loans

2001

£’000

175

9

-

-

184

2001

£’000

285

292

849

1,296

2,722

Total

2001

£’000

460

301

849

1,296

2,906

The Group had undrawn committed borrowing facilities, in respect of which all conditions precedent had been met, as follows:

Expiring in one year or less

Expiring in more than one year but not more than two years

Expiring in more than two years

Total

e) Fair values

2001

£

9,331

-

730

10,061

Total

2000

£’000

541

287

917

1,512

3,257

2000

£

3,039

-

673

3,712

There is no material difference between the fair value and book value of the Group’s ﬁnancial assets and liabilities at 2 June 2001.

45

55265_P18 53  12/9/01  7:18 pm  Page 29

NOTES TO THE ACCOUNTS

18 Provisions for liabilities and charges

Deferred taxation

Beginning of period

Charged to proﬁt and loss account

End of period

Group

2001

£’000

665

228

893

2000

£’000

295

370

665

The deferred taxation represents full provision for the excess of the allowances over book depreciation of ﬁxed assets.

19 Called-up share capital

Ordinary shares of 12.5p each

Authorised

Beginning and end of period

Allotted, called-up and fully-paid

Beginning of period

Issue in period

End of period

Number of

shares

2001

£’000

Number of

shares

2000

£’000

56,600,000

7,075

56,600,000

7,075

42,476,258

2,328,760

44,805,018

5,309

42,114,175

292

362,083

5,601

42,476,258

5,264

45

5,309

During the period the Company allotted 2,328,760 (2000 - 362,083) ordinary shares with a nominal value of £292,000 (2000 - £45,000)

under share option schemes for an aggregate cash consideration of £1,196,000 (2000 - £180,000).

46

55265_P18 53  12/9/01  7:18 pm  Page 30

20 Reserves 
Group

Beginning of period

Premium on issue of new shares

Share issue expenses
Retained proﬁt for the period

End of period

Company

Beginning of period

Premium on issue of new shares

Share issue expenses

Retained proﬁt for the period

End of period

21 Reconciliation of movements in Group equity shareholders’ funds

Proﬁt for the period

Dividends paid and proposed

Issue of shares (net of expenses)

Net addition to shareholders' funds

Opening equity shareholders’ funds

Closing equity shareholders’ funds

NOTES TO THE ACCOUNTS

Share

Proﬁt and

Premium loss account

£’000

112

904

(11
)
-

1,005

Special

reserve

£’000

14,917

-

-

-

Share

premium

£’000

112

904
)
(11

-

14,917

1,005

£’000

8,160

-

-
4,302

12,462

Proﬁt

and loss

account

£’000

317

-

-

949

1,266

2001

£’000

6,547

(2,245

)

1,185

5,487

13,182

18,669

2000

£’000

5,531

(1,844

)

157

3,844

9,338

13,182

47

55265_P18 53  12/9/01  7:18 pm  Page 31

NOTES TO THE ACCOUNTS

22a) Reconciliation of operating proﬁt to operating cash ﬂows 

Operating proﬁt

Depreciation

Proﬁt on disposal of ﬁxed assets

Goodwill amortisation

Increase in stocks

Increase in debtors

Increase in creditors

Net cash inﬂow from operating activities

2001

£’000

9,637

1,474

(344

)

18

(1,345

(1,113

)
)

2,692

11,019

2000

£’000

8,249

1,070

(463

)

12

(2,663

(1,006

)
)

2,306

7,505

Included within net cash inﬂow from operating activities is an exceptional cash receipt of £2,083,000 (2000 – £Nil) which represents

amounts remitted by the directors in respect of PAYE liabilities to be settled in the next ﬁnancial period.

22b) Returns on investments and servicing of ﬁnance

Interest received

Interest paid

Interest element of hire purchase rentals

Interest capitalised

Net cash outﬂow from returns on investments and servicing of ﬁnance

22c) Capital expenditure

Purchase of tangible ﬁxed assets

Sale proceeds of tangible ﬁxed assets

Net cash outﬂow from capital expenditure 

48

2001

£’000

84

(315

(14

14

)
)

(231

)

2001

£’000

(5,157

)

323

(4,834

)

2000

£’000

17

(303
)
)
(8

71

(223
)

2000

£’000

(5,969
)
1,822

(4,147
)

55265_P18 53  12/9/01  7:18 pm  Page 32

22d) Acquisitions and disposals

Acquisitions 

22e) Financing

Proceeds from issue of ordinary share capital

Expenses in connection with issue of share capital 

New loans

Repayment of loans

Capital element of hire purchase rentals

Net cash inﬂow from ﬁnancing

22f) Analysis and reconciliation of net debt

Cash in hand and at bank

Debt due within 1 year

Debt due after 1 year

Finance leases

Net debt

Increase (decrease) in cash in the period

Cash outﬂow from decrease in debt and ﬁnance leasing

Change in net debt resulting from cashﬂows
New ﬁnance leases

Movements in net debt in the period

Net debt at start of period

Net debt at end of period

NOTES TO THE ACCOUNTS

2001

£’000

-

2001

£’000

1,196

(11

)

603

(863

(325

)
)

600

Other

non-cash

changes

£’000

-

-

-

(234

)

(234

)

2001

£’000

1,771

585

2,356
(234

)

2,122

(2,822

)

(700

)

2000

£’000

(219

)

2000

£’000

180

(23

)

762

(762

(105

)
)

52

2001

£’000

2,206

(285

)

(2,437

)

(184

(700

)
)

2000

£’000
)
(275

105

(170
)
(308
)
(478
)
)
(2,344

(2,822
)

49

2000

£’000

435

(281
)
)
(2,701

(275

(2,822

)
)

Cash ﬂow

£’000

1,771

(4
)
264

325

2,356

55265_P18 53  12/9/01  7:18 pm  Page 33

NOTES TO THE ACCOUNTS

23 Financial commitments

a) Capital commitments

At the end of the period there were no capital commitments contracted for but not provided for (2000 - £nil)

b) Pension arrangements

The Group operates separate deﬁned contribution pension schemes for employees and directors.  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 £129,000 (2000 - £200,000).

The Group wound up its deﬁned beneﬁts pension scheme on 16 May 2001 and has no further liability to the scheme.

c) Lease commitments

Annual commitments under non-cancellable operating leases are as follows:

Operating leases which expire:

- within 1 year

- within 2 - 5 years

- after 5 years

2001

2000

Property

£’000

Other

£’000

Property

£’000

779

1,478

4,599

6,856

92

303

16

411

190

1,181

4,490

5,861

Other

£’000

60

157

15

232

During the period the Company received £400,000 (2000 - £220,000) as landlords contributions towards relocation costs.

50

55265_P18 53  12/9/01  7:18 pm  Page 34

Turnover

Operating proﬁt

Proﬁt before taxation

Shareholders’ funds

Basic earnings per share1

Adjusted basic earnings per share1

Dividend per share1

Dividend cover

Average number of employees

Share price (period end)1

Notes

1. Adjusted for subdivision of share capital.

FOUR YEAR RECORD

1998

£’000

31,274

4,282

4,127

4,166

7.1

p

7.1

p

2.4

3.0

397

193

p

1999

£’000

42,996

6,091

5,828

9,338

9.9

p

9.9

p

3.2

3.0

585

212

p

2000

£’000

62,614

8,249

8,018

13,182

13.1

p

14.2

p

4.3

3.0

779

271

p

2001

£’000

74,642

9,637

9,414

18,669

14.8

p

14.8

p

5.0

2.9

941

330

p

51

55265_P18 53  12/9/01  7:18 pm  Page 35

NOTICE OF ANNUAL GENERAL MEETING

for the period ended 2 June 2001

Notice is given that the annual general meeting of Topps Tiles Plc will be held at Topps Tiles Plc, Unit D, Mortimer Road Industrial

Estate, Narborough, Leicester LE9 5GA on 11 September 2001 at 10.30 am for the following purposes:

Ordinary business

1 To receive the accounts for the period ended 2 June 2001 and reports of the directors and auditors on them.

2 To declare a ﬁnal dividend on the ordinary share capital of the Company.

3 To re-appoint Arthur Andersen as auditors of the Company to hold ofﬁce from the conclusion of this meeting until the conclusion of

the next general meeting at which accounts are laid before the Company at a remuneration to be ﬁxed by the directors.

4 To re-elect Alan McIntosh as a director.

5 To re-elect Victor Watson as a director.

Special business

To consider and, if thought ﬁt, to pass the following resolutions of which number 6 will be proposed as an ordinary

resolution and number 7 as a special resolution.

6 For the purposes of section 80 of the Companies Act 1985 (the "Act"), the directors be generally and unconditionally authorised, in

substitution for any existing authority to allot relevant securities (within the meaning of section 80 of the Act), to exercise all the

powers of the Company to allot relevant securities up to an aggregate nominal amount of £1,866,689 provided that this authority

shall expire ﬁve years from the date of the passing of this resolution (unless previously revoked, varied or extended by the Company

in general meeting), except that the Company may before the expiry of such period make an offer or agreement which would or

might require relevant securities to be allotted after the expiry of such period and the directors may allot relevant securities in

pursuance of any such offer or agreement as if this authority had not expired.

7 The directors be empowered (pursuant to section 95 of the Act) to allot equity securities wholly for cash pursuant to the authority

conferred on them by resolution 6 above as if section 89 (1) of the Act did not apply to any such allotment, provided that such power

shall be limited to the allotment of equity securities.

7.1 in connection with a rights issue; and

52

55265_P18 53  12/9/01  7:18 pm  Page 36

NOTICE OF ANNUAL GENERAL MEETING

7.2 the allotment (otherwise than pursuant to sub-paragraph 7.1 above) of equity securities up to an aggregate nominal amount 

of £280,031

and shall expire on the earlier of the conclusion of the next annual general meeting of the Company and the date falling 15 months

after the date of the passing of this resolution (unless previously revoked, varied or extended by the Company in general meeting)

except that the Company may before the expiry of any power contained in this resolution make an offer or agreement which would

or might require equity securities to be allotted after such expiry and the directors may allot equity securities in pursuance of such

offer or agreement as if this power had not expired.

In this resolution 7:

a "rights issue" means an offer of equity securities open for acceptance for a period ﬁxed by the directors to holders of ordinary shares

on the register on a ﬁxed record date in proportion to their respective holdings of such shares or in accordance with the rights

attached to them (but subject to such exclusions or other arrangements as the directors may deem necessary or expedient in

relation to fractional entitlements or in relation to legal or practical problems under the laws of, or the requirements of any regulatory

body or any stock exchange in any territory);

b the nominal amount of any securities should be taken to be, in the case of a right to subscribe for or convert any securities into

shares of the Company, the nominal amount of the shares which may be allotted pursuant to such right; and words or expressions

deﬁned in or for the purposes of sections 89-96 inclusive of the Act shall bear the same meanings.

By order of the Board

Andrew Liggett

Secretary

17 August 2001

Registered ofﬁce:

Rushworth House

Wilmslow Road

Handforth

Cheshire SK9 3HJ

Registered No: 3213782

53

55265_P54 59  12/9/01  7:21 pm  Page 1

NOTICE OF ANNUAL GENERAL MEETING

Notes

1 Any member of the Company entitled to attend and vote at the annual general meeting may appoint one or more proxies to attend

and, on a poll, vote on his or her behalf.  A proxy need not be a member of the Company.  To be valid, a form of proxy, and any

power or authority under which it is signed, must be lodged with the Company’s registrars, Capita IRG Plc, Balfour House, 390/398

High Road, Ilford, Essex, IG1 1BR, no later than 48 hours before the time of the annual general meeting.  A form of proxy is

enclosed.

2 The completion and return of a form of proxy will not preclude a member from attending and voting at the meeting in person.

3 The following documents are available for inspection by members at the registered ofﬁce of the Company on weekdays (except

bank holidays) during normal business hours, and at the place of the meeting but not less than 15 minutes prior to and during the

meeting:

3.1 the register of directors’ interests required to be kept under section 325 of the Act; and

3.2  copies of the directors’ service contracts.

4 The following is an explanation of the resolutions relating to special business;

4.1 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 80 of the Act.  Resolution 6 will be put to members as special business to

authorise the directors to allot ordinary shares with a nominal value of £1,866,689 out of the Company’s unissued share capital

representing approximately 33.33 per cent of the Company’s current issued share capital.  The authority shall expire ﬁve years

from the date of passing of this resolution.

4.2 Resolution 7 will seek to obtain power under section 95 of the Act for the directors to allot for cash shares with an aggregate

nominal value of £280,031equal to approximately 5 per cent 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 employees’ share option scheme, the proportionate interests of

shareholders cannot, without their consent, be reduced by the issue for cash of new shares representing more than 5 per cent of

the current issued share capital.  Save for the issue of shares pursuant to options granted under the Company’s employees’

share option scheme, the directors have no present intention 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.

54

55265_P54 59  12/9/01  7:21 pm  Page 2

An Abdulkadir to Zoe of our Team

Abdulkadir Abdi Kulmie
Abdulkadir Abdi Kulmie

Adam Bauly
Adam Coates 
Adam Hughes 
Adam Ireland
Adam Laidlaw
Adam Lewis
Adam Lucas
Adam Mills
Adam Shewan
Adam Thompson
Adam Tilbury 
Adrian Atkins
Adrian McCourt
Adrian Munday
Adrian Pickup
Adrian Wild
Aidan Ward
Aileen Crossley
Aimee Mallett
Aklakud Duha
Akommil Ali
Alan Brannigan
Alan Faulkner
Alan Harding
Alan Hudson
Alan Metcalfe
Alan Monk

Alan Parker
Alan Saunders
Alan Seal
Alan Sproston
Albert Neil
Alex Large
Alfred Asare
Alison Manning
Allan Chigariro
Allan Harper
Allison Alderson
Amanda Hardy
Amanda Hullett
Amin Ladhu
Ana Spedding
Andre Cherfan
Andrea Muccio
Andrew Anthony
Andrew Bradshaw
Andrew Carlisle
Andrew Clay
Andrew Collins
Andrew Creese
Andrew Curtis
Andrew Ditchburn
Andrew Endersby
Andrew Hanson

Andrew Hill
Andrew Jones
Andrew Keirle
Andrew Liggett
Andrew Massey
Andrew McLaren
Andrew Monks
Andrew Moore
Andrew Parnell
Andrew Press
Andrew Simpson
Andrew Smith
Andrew Ward
Andrew Waterﬁeld
Andrew Williams
Angela Harrison
Angela Wiltshire
Anna Timney
Anne Lloyd
Anne McCabe
Anne Stevens
Annette Gorstridge
Annette Southon
Anouska Edge
Anthony Christopher
Anthony Cox
Anthony Eaton
Anthony Gilbert
Anthony Grimshaw
Anthony Houghton
Anthony Kerr
Anthony Linsell
Anthony Lloyd

Anthony Molyneux
Anthony Moulds
Anthony Murphy
Anthony Spurling
Antony Beazer
Antony Plant
Antony Zawadski
April Dunkley
Arnold Harrison
Ashley Cook
Ashley Jordan
Asvin Shah
Augustus Slater
Barbara Dormer
Barbara Edge
Barrie Taylor
Barry Bester
Barry Glazer
Barry Price
Barry Squires
Barry Stephen
Barry Tough
Basera Poselay
Ben Armitage
Ben Harrison
Benjamin Mills
Bernard Cope
Beverley Stokes
Brad Crosthwaite
Brant Wells
Brenda Bowles
Brendan Williams
Brendon Roberts

THE TEAM

Brian Forde
Brian Jones
Brian Perrott
Brian Richards
Bruce Fielding
Bryan Hartley
Bryan Telfer
Byron Coles
Carina Lowe
Carl Bradbury
Carl Dicks
Carl Entwistle
Carl Fraser
Carl Sheppard
Carlos Rodriguez
Carol Sudlow
Carole Crofts
Caroline Bennett
Caroline May
Caroline Meadows
Cassandra Sides
Catherine Bailey
Chan Gokani
Charles Kent
Charlotte Shuttleworth
Chris Bain
Chris Cartey
Chris McGill
Chris Paddon
Chris Tate
Chris  Tupper
Christine Glover
Christine Hendry

55

55265_P54 59  12/9/01  7:21 pm  Page 3

Christine Rea
Christine Wadsworth
Christine Whiteman
Christopher Castle
Christopher Cooper
Christopher Davis
Christopher Eastham
Christopher Lount
Christopher Lupton
Christopher Metcalf
Christopher Smith
Christopher Taylor
Christopher Toneri
Cindy Smith
Claire Curtis
Claire White
Clinton Quinn
Clive Eades
Colin Butler
Colin Crowley
Colin Dixon
Colin Hampson
Colin Hoban
Colin Markham
Colin Offord
Colin Probert
Colin Rymer
Colin Wharton
Colin Winterburn
Craig Fitzgerald
Craig Ollard
Craig Tetlow
Craig White
Crescent Baron
Dale Hoy
Daniel Beaven
Daniel Beggs
Daniel Fallows
Daniel Freakley
Daniel Jebbett
Daniel Jones
Daniel McAllister
Daniel Musguin
Daniel Savva
Danny Fennings

56

Danny Gamble
Danny Walden
Darrel Bester
Darren Carruthers
Darren Cawkwell
Darren Connor
Darren Cooper
Darren Hall
Darren Howlett
Darren Maddocks
Darren Nicholas
Darren Pritchard
Darren Saker
Darren Simm
Darryn Walker
David Asquith
David Austin
David Bailey
David Black
David Borwick
David Broadbent
David Canning
David Carpenter
David Chapman
David Collyer
David Daulton
David Dunbar
David Edwards
David Elloway
David Evans
David Fitzgerald
David French
David Gridley
David Harper
David Hatton
David Henderson
David Hirst
David Hulme
David Kilgour
David Knapp
David Lalley
David Lamb
David Linwood
David Lott
David Macartney

David May
David Mitchell
David Needham
David Nelson
David Oliver
David Overton
David Parr
David Peppiatt
David Price
David Savage
David Stott
David Stoughton
David Strain
David Thomasson
David Turne
David Walter
David Warrilow
David Williams
Dean Bennett
Dean Brown
Dean Holder
Dean Johnson
Dean Marshall
Dean Seagrave
Dean Tassell
Debbie Hynd
Deborah Johnson
Deborah White
Deborah Williams
Debra Davies
Denis O'Brien
Dennis Cragen
Derek Harrison
Derek Lambourn
Derek Parsons
Derek Reynolds
Desmond Kelly
Dexter Pratley
Dilawar Ali
Dorren Hyatt
Dudley Land
Duncan Bull
Dwayne Howard
Dylan Roberts
Edmund Smith

Edward Derbyshire
Edward Dove
Edward Sellors
Edward Walker
Elaine Thomline
Elizabeth Donovan
Elizabeth Kelly
Emin Demirkaya
Emma Ashcombe
Emma Brookes
Emma Casey
Emma Cunliffe
Emma Jarram
Enid Lamb
Evan Hughes
Evette Cherrington
Faith Askew
Fayyaz Ahmed
Fernando Muanza
Fharook Mughal
Flora Tuitt
Frances Bloomﬁeld
Francis McMillan
Gary Anderson
Gary Asher
Gary Blair
Gary Curtis
Gary Cutts
Gary Firth
Gary Glasgow
Gary Jordan
Gary McIntyre
Gary Shouler
Gary Sowerby
Gary Thompson
Gavin Bennett
Gavin Dwyer
Gavin McGregor
Gavin Mitchell
Gavin Ramsey
Geoff Sutters
Geoffrey Gordon
Geoffrey Webster
Gerald Doddimeade
Gerald Lazaro

Geraldine Farrow
Gerard Duffy
Gerard Mallon
Gerry Brown
Gerry West
Gillian Beavan
Gillian Grace
Gillian Gray
Glen Claridge
Glen Deefholts
Glenis Shirley
Glenn Jessop
Glenn Madgin
Glenys Ogden
Glyn Draycott
Glyn Rogers
Gordon Dwyer
Gordon Kerr
Graham Chapman
Graham Keep
Graham Leahy
Graham White
Greg Banos
Gregg Wall
Guy Wilcox
Harry Broadbent
Harry Morris
Haydon Driscoll
Heath Maryson
Heather Blore
Helen Barker
Helen Bowen
Helen Greatbatch
Helen McDermott
Ian Beasley
Ian Bloomﬁeld
Ian Cullen
Ian Jones
Ian Macluskie
Ian Marshall
Ian McInteer
Ian McLean
Ian Pennington
Ian Smith
Ian Winterburn

55265_P54 59  12/9/01  7:21 pm  Page 4

Ian Young
Ilona Logan
Imran Ashraf 
Ivan Frampton
Ivar Jensen
Jackie Acres
Jacqueline Byrne
Jacqueline Macgillivrah
James Bayes
James Bott
James Bridges
James Brough
James Brown
James Carpenter
James Eastham
James Edge
James Gaving
James Gentleman
James Hardy
James Hazeltine
James Hogan
James Hulme
James Manders
James McGuigan
James Metcalf
James Moores
James Oaten
James Paterson
James Patston
James Richards
James Robertson
James Ryder
James Sawyer
James Smith
Jamie Brewer
Jamie McNeilly
Jamie Smith
Jamie Turner
Jane Ladlow
Janet Burgess
Janet Lockyer
Janice Millett 
Jason Doe
Jason Meadows
Jason Moore

Jason Morley
Jason Naga
Jason Rigby
Jason Smith
Javeed Parkar
Jayawthe Weerasinge
Jayesh Dhokia
Jayne De Gruchy
Jenny Seabrook
Jeremy Harris
Jessica Merryweather
Jethu Miah
Joan Moores
Joanna Daulton
Jodie Robb
Joe Cox
Joe Sargent-Cain
Johanna Asher
John  Barnet
John Brindle
John Coles
John Daulton
John Davidson
John Doodson
John Forden
John Fox
John Gallagher
John Herr
John Hickey
John Hunter
John Kelly   
John Kent
John Macrae
John McKenna
John Pughe
John Reilly
John Russell
John Gary Smith
John George Smith
John Stitson
John Sutton
Jon Oliver
Jonathan Austin
Jonathan Coombs
Jonathan Hargreaves

Jonathan Martin
Jonathon Perkins
Jonathan Roberts
Jonathon Sheerin
Josephine Hilldrup
Joyce Davies
Judy Prescott
Juginder Gill
Juile Moorhead
Julian Lloyd
Julie Cox
Julie Jamieson
Julieanne Addinall
Justin Gough
Kalpesh Shah
Karen March
Karen Ross
Karen Sutcliffe
Karl Jackson
Karl Sisson
Karl Smith
Karl Winship
Katan Shah
Kate Harvey
Kathryn Robinson
Kathryn Rowley
Katie Howe
Katie McGowan
Keiron Birch
Keith Earl
Keith Rudkin
Kelly Ellison
Kelly Thompson
Kelly Whyte
Kelly Wrenn
Kenneth Cookson
Kenneth Frankland
Kenneth Oldham
Kenneth Owen
Kenneth Timms
Kenneth Turner
Kerri Bester 
Kerri Wood
Kerry Atkinson
Kerry Hall

Kerry Hume
Kerry McAulay
Kevan Richardson
Kevin Croft
Kevin Furse
Kevin Gallagher
Kevin Hayes
Kevin Hodson                  
Kevin Mottram
Kieth Miller                       
Kirsten Hughes
Lancelot Chigariro
Larissa Gurney
Laura Johnson
Laura Kershaw
Laurence Loxam
Lee Collins
Lee Cotterill
Lee Croft
Lee Culley
Lee Galloway
Lee Harrison
Lee Johnston
Lee Langmaid
Lee Markwell
Lee Marron
Lee Maxey
Lee McCullough
Lee Moore
Lee Mullen
Lee Payne
Lee Pinder
Lee Reeves
Lee Riches
Leigh Holden
Leo Canning
Leo O'Doherty
Leonard Denton
Leonard Sheldrick
Leonard Wilson
Leslie Baker
Leslie Bowles
Leslie Thomson
Lewis Wilkinson
Liam Taylor

Linda Hadley
Lisa Sheppard
Lisa Walker
Lois Reade
Loretta Daley
Lorna Ballantyne
Lorretta Mitchell
Louis McEvilly
Louise Ashley
Louise Kelly
Louise McGough
Louise Walton
Lucy Ashton
Luke Robinson
Lynda Prescott
Lyndsey Martin
Lynn Domsalla
Mandy Aidney
Marc Moules                    
Marco Quasimodo
Margaret Clapham
Margaret Lawrie
Margaret Rayner
Margaret Seaton
Maria Wing                       
Mark Bentley
Mark Bradbury
Mark Curwen
Mark Dawson
Mark Ford
Mark Hadﬁeld
Mark Hodgkinson
Mark Jepson
Mark Johnson
Mark Jones
Mark Lever
Mark Moore
Mark Mottershead
Mark Pearce
Mark Redpath
Mark Riley
Mark Robinson
Mark Sewell
Mark Stephenson
Mark Strong

57

55265_P54 59  12/9/01  7:21 pm  Page 5

Mark Whiteman
Mark Wilcock
Mark Williams
Martin Baker
Martin Derricott
Martin Flynn
Martin Jackson
Martin Ridgway
Martin Rowlands
Martin Shenton
Martin Sinnott
Martin Smith
Martin Winterburn
Mary Stonard
Mathew Dunn
Mathew Kelly
Mathew Penny
Mathew Wheeler
Matt Whiteman
Matthew Askew
Matthew Ball
Matthew Cribb
Matthew Hawley
Matthew Higginson
Matthew Mckune
Matthew Pickley
Matthew Williams
Mehmet Asdoyuran
Melanie Dean
Melanie Gardiner
Melton Thompson
Melvin Littler
Michael Bateman
Michael Bolden
Michael Boughton
Michael Coward
Michael Cumberbatch
Michael Dunn
Michael Earls
Michael Finn
Michael Foster
Michael Gay
Michael Hickson
Michael Holland

58

Michael Hollis
Michael Humpage
Michael Jack
Michael Litster
Michael Low
Michael Maddison
Michael O'Gorman
Michael Pow
Michael Reilly
Michael Thomas
Michael Weston
Michael Williams
Michael Worsnip
Michele Calver
Michelle Bovey
Michelle Kempson
Michelle Sutherland
Mohamed Iqbal
Mohamed Patel
Mohammed Parvaz
Mohammed Zamurd
Naomi Cullen
Naomi Mildenhall
Nathan Barrass
Nathan Collins
Nathan Jander
Nathan Seigneur
Nazia Bibi
Neil Cattroll
Neil Curtis
Neil Hendy
Neil Homan
Neil Humphreys
Neil Kelly
Neil Ketnor
Neil Walker
Nichola Fowler
Nicholas Bradshaw
Nicholas Deary
Nicholas Lawrence
Nicholas Ounstead
Nicholas Withers
Nick Timlin
Nicola Acres

Nicola Dearden
Nicola Duckworth
Nicola Scott
Nicola West
Nicolas Wassell
Nigel Barugh
Nigel Fleming
Nigel Wills
Nikki Baldock
Nikolai Nikoloff
Nilesh Dahya
Nita Blackwell
Norma Beresford
Oluremi Dikko-Balogun
Pamela Brydon
Paresh Rajani
Patricia Brian
Patricia Campbell
Patricia Croft
Patricia Walker
Paul Atkinson
Paul Bainbridge
Paul Carter
Paul Clapham
Paul Coffey
Paul Collins
Paul Danbury
Paul  Daubney
Paul Grifﬁths
Paul Hammond
Paul Howarth
Paul Hughes
Paul Jones
Paul Kemp
Paul Kinsella
Paul Lathrope 
Paul Laverty
Paul Leaford
Paul Liggett
Paul McCullock
Paul Murton
Paul Nicholls
Paul Peacock
Paul Pratley

Paul Revell
Paul Riley
Paul Robinson
Paul Rudyard
Paul Sanderson
Paul Scott
Paul Shaw
Paul Sutton
Paul Thornecroft
Paul Vye
Paul Williams
Paul Wood
Paul Wright 
Paula Budsworth
Pauline Grenfell
Peter Biggs
Peter Byrne
Peter Charters
Peter Crake
Peter Davey
Peter Davidson
Peter Fallows
Peter Johnson
Peter Murray
Peter Nicklin
Peter Riches
Peter Sharkey
Peter Smith
Peter Stagg
Peter Sumner
Phil Peacock
Philip Cuthbertson
Phillip Hunt
Philip Kelly
Philip McCarney
Philip Tomlin
Pratik Parekh
Pushpakant Mathur
Raj Surani
Rajan Mehta
Raymond Mann
Raymond Youseph
Rebecca Bailey
Rebecca Jacques

Rebecca Oblein
Rex Ogden
Rhonda Partridge
Richard Ball
Richard Barnes
Richard Bickers
Richard Brookﬁeld
Richard Carter
Richard Clark
Richard Clarke
Richard Conlong
Richard Diedrick
Richard Gallagher
Richard Harris
Richard Homan
Richard Hutcheson
Richard Khamani
Richard King
Richard Lotto
Richard Prescott
Richard Redfern
Richard Sellars
Richard Smallman
Rick Whelband
Ricky Stevens
Rizwan Khan
Robert Blount
Robert Cairns
Robert Cooper
Robert Docker
Robert Exley
Robert Gaskin
Robert Gordon
Robert Hadley
Robert Hodgson
Robert Moss
Robert Myers
Robert Tenn
Roberto Di-Leva
Robin Holt
Roderick Carswell
Roger Bailey
Ronald Daniels
Ronald Emmanuel

55265_P54 59  12/9/01  7:21 pm  Page 6

Ronald Judges
Ronald Perrott
Rory Keen
Rory McNally
Rosina Taylor
Roy Haddon
Roy Peasland
Ryan Mark
Ryan Mason
Samantha Cato
Samantha Harris
Samantha Sayer
Samuel Foston
Sandra Lloyd-Hughes
Sandra Robinson
Sandra Stevens
Sarah Earthey
Sarah Jones
Satyan Meisaria
Scott Arundell
Scott Hamilton
Scott Meadows 
Scott Picken
Scott Porter
Scott Slaughter
Scott Stephenson
Scott Walton
Scott Williams
Sean Evans
Sean McCartney
Sean McClafferty
Sean King
Shahid Mahmood
Shane Billson
Shane House
Shane Malone
Shanor Ali 
Sharon Muir
Sharon Wood
Shaun Bebbington
Shaun Butcher 
Sheila Robertson
Sheila Whetton
Sherief Madkour Aly

Shirley Girdler
Shirley Moore
Simeon Fender
Simon Alison
Simon Bedford
Simon Benbow
Simon Derbyshire
Simon Farr
Simon Fullaway
Simon Green
Simon Jones
Simon Oaten
Simon Rayner
Simon Tunnicliffe
Simon Walker
Sion Jackson
Socrates Pantelides
Stanley Crowther
Stephanie Brooks
Stephanie Nevett
Stephen Ainsworth
Stephen Clark
Stephen Clarke
Stephen Collins
Stephen Dempster
Stephen Easthope
Stephen Jones
Stephen Melia
Stephen Nunn
Stephen O'Callaghan
Stephen Putland
Stephen Reed
Stephen Ridout
Stephen Smith
Stephen Unuth
Stephen Wilson
Stephenie Bispham
Steve Budd
Steve Sheekey
Steven Bowden
Steven Firth
Steven Fulthorpe
Steven Godwin
Steven Jacobs

Steven Kaye 
Steven Long
Steven Nelson
Steven Powner
Steven Pratt
Steven Tinkler
Steven Wright 
Stewart Trace
Stuart Argyle
Stuart Coleman
Stuart Gratton
Stuart Hood 
Stuart Hopwood
Stuart Jones
Stuart Leatherland
Stuart Massey
Stuart Pemberton
Stuart Perrins 
Stuart Thompson 
Stuart Tynan 
Stuart Williams
Sunil Patel 
Susan Attwell 
Susan Henshall 
Susan Hunt 
Susan Wright 
Suzanne Lloyd 
Suzanne Sutherland
Terence Dooley
Terence Melia 
Terence Power
Terry Harrod  
Theresa Baker 
Thomas Greengrow
Thomas Jones
Thomas Lewis
Thomas Ryan
Tim Coleman
Tim Keating
Tim Wells
Timothy Boardman
Toby Bateson
Tommy Dobson
Tony Alliband

Wayne Hughes 
Wayne Quaintance 
Wayne Randell 
Wayne Sponneck 
William Bailey 
William Bowers
William Corbett
William Gunshon 
William Harvey
Wyn Hopkins
Yvonne Burgess 
Zaid Tufail 
Zena Calver
Zhi Pei
Zoe Capener

Tony Bennington
Tony Chapman
Tony Davies
Tony Fitzgibbons
Tony Long
Tony Smith
Tony Watson
Tracey Gallagher
Tracey Kenny
Tracey Kenrick
Tracy  Walters
Tristan Strange
Valerie Vernon
Vicky Edge
Victoria Bachell
Victoria Gallagher
Victoria Harper
Victoria Tarn
Vivienne Johns
Warren Bull 
Warren Hearn
Warren Smith
Wayne Bennett
Wayne Farini 
Wayne Hardy

Zoe Cope
Zoe Cope

55265_P60&IBC  12/9/01  7:46 pm  Page 1

STORE LOCATIONS

Central Region
Aston
Banbury
Bedford
Burton on Trent
Coventry*
Derby
Great Yarmouth*
Ipswich*
Kidderminster*
Kings Heath
Kings Lynn*
Leicester
Lincoln
Luton
Milton Keynes
Narborough
Newcastle
under Lyme 
Northampton
Norwich
Nottingham
Oldbury
Peterborough*
Sheldon
Shrewsbury
Solihull
Stafford
Stoke on Trent
Tamworth
Wolverhampton

London and
Thames South
Basildon
Beckton
Brighton
Broadstairs*
Catford
Charlton
Chingford
Colindale
Crayford
Croydon

Dagenham
Edmonton
Gatwick
Gunnersbury
Harlow
Ilford
Maidstone
Mitcham
New Southgate
Newbury
Old Kent Road
Penge
Raynes Park
Reading
Romford
Southall
Southampton
Southend on Sea
Stamford Hill
Tonbridge*
Tunbridge Wells*
Uxbridge
Vauxhall
Watford
Wembley

North West
Aintree
Audenshaw
Barrow in Furness
Blackburn
Blackpool
Bolton
Carlisle*
Cheadle
Chester
Chester 2
Cleveleys
Crewe
Failsworth
Macclesﬁeld
Morecambe
Oldham
Preston

Total 121 stores

Sale
Salford
St Helens
Speke
Stockport
Warrington
Widnes
Wigan

North
Chesterﬁeld
Gateshead
Harrogate
Huddersﬁeld
Leeds*
Stockton
Sunderland
Tyneside*
Wakeﬁeld
York

Scotland
Aberdeen
Edinburgh
Greenock
Hillington
Inverness
Linwood
Perth
Rutherglen
Wishaw

South West
Barnstaple
Bristol
Cardiff
Cheltenham
Christchurch
Exeter
Gloucester
Newport
Poole
Swansea
Swindon*
Taunton
Weston Super Mare

Greater London 25 stores

* New store 2000/2001

55265_P60&IBC  12/9/01  7:46 pm  Page 2

STORE LOCATIONS

Central Region
Cambridge*
Coventry*
Great Barr
Fenton
Leicester*
Nottingham
Peterborough
Stoke on Trent
Worcester*

London and
Thames South
Charlton
New Southgate
Orpington
Swindon*
Wembley

North West
Crosby
Doncaster
Oldham
Openshaw
Preston
Shefﬁeld
Stockport

North
Darlington*
Hull
Leeds*

South West
Bridgend*
Exeter*

Total 26 stores

* New store 2000/2001

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55265_F&B  12/9/01  7:16 pm  Page 1

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1

Rushworth House, Wilmslow Road, Handforth, Wilmslow, Cheshire SK9 3HJ.  Telephone 01625 446 700  Facsimile 01625 446 800   www.ToppsTiles.co.uk

Topps Tiles Plc

Topps Tiles Plc Annual Report and Accounts 2001