MARKET REPORT: Topps Tiles shares hit the floor after board bust-up breaks out with top shareholder and a major supplier
Shares in Topps Tiles crashed amid a bust-up with its biggest shareholder and a major supplier.
The UK’s biggest tile retailer is battling MSG, which has called for its chairman to be ousted and for two representatives to take seats on its board.
MSG, which has a 29.9 per cent stake, also owns Polish tile producer Cersanit. It has been building its holding in Topps since May 2020, when it bought a 4.1 per cent chunk.
Boardroom row: Topps Tiles is battling its biggest shareholder MSG, which has called for its chairman to be ousted and for two representatives to take seats on its board
Cersanit supplies less than 1 per cent of Topps’ tiles, but MSG wants this to rise to nearly 30 per cent.
Topps rejected the proposal, which it said is a ‘conflict of interest’ between what is best for shareholders and MSG’s desire to sell more tiles.
Topps added that it does not buy more than 10 per cent of its tiles from any single supplier, to avoid market disruption.
As a result, MSG has put forward proposals for its annual shareholder meeting on January 18 for a vote on whether to oust chairman Darren Shapland. They will also be asked to vote on whether to appoint Lidia Wolfinger and Michael Bartusiak to the board.
Shapland said he and the rest of the board ‘strongly reject’ the proposals, and have the backing of more than a third of remaining shareholders.
Topps fell 7.6 per cent, or 3.8p, to 46p and is down 29 per cent this year as it fights soaring inflation and the end of the home improvement boom.
On the wider market, the FTSE 100 dipped 0.4 per cent, or 32.20 points, to 7489.19 yesterday while the FTSE 250 was down by 0.9 per cent, or 169.51 points, to 18.930.57.
Stock Watch – Naked Wines
Naked Wines is pressing ahead with turnaround plans after sinking into the red.
The online wine seller, a so-called ‘lockdown winner’, clocked up losses of £0.2million in the six months to September.
That followed a profit of £1.3million in the same period a year earlier.
The company also said interim finance boss James Crawford, who has been with the group for nearly nine years, would take on the role full-time. Shares rose 11.3 per cent, or 11.1p, to 108.3p.
Global markets struggled for direction as fears of recession overshadowed moves by China to ease strict Covid restrictions.
The price of oil hovered around its lowest levels since January – below $80 a barrel – ahead of some of the world’s biggest central banks, including the Federal Reserve in the US and the Bank of England, meeting next week to set interest rates as they battle inflation.
While it is hoped the pace of interest rate hikes will ease as fears over the economy mount, more rises are on the cards as the fight against inflation goes on.
The biggest fall in UK house prices since the 2008 financial crisis did little to lift the mood.
AJ Bell investment director Russ Mould said: ‘It underlines how tough the property market is right now as mortgage rates remain elevated and people don’t feel in a position to make such a big commitment, thanks to uncertainty and cost of living pressures.’
Barclays has appointed Alistair Currie as chief operating officer to replace Mark Ashton-Rigby. Currie was in charge of the lender’s consumer banking and payments business, with his replacement Vim Maru joining from Lloyds. It fell 0.8 per cent, or 1.32p to 157.44p.
Meanwhile Games Workshop swung into reverse on the news its half-year profit was likely to fall.
The Warhammer figurine maker said its profit for the six months to November should be at least £83million, having made £88.2million during the same period in 2021.
But it forecast revenue of £210million, up on last year’s £191.5million. The group also appointed John Brewis as its next chairman from January, to replace Elaine O’Donnell. Shares fell 0.4 per cent, or 85p, to 7295p.
Music Magpie fell out of tune with investors after record sales over the Black Friday week failed to offset a slump in revenue.
The electronics seller said its bumper sales in November during one of the busiest days for retailers came after a slowdown in the summer and early autumn.
But revenue is expected to be £144.8million for the year to November – down slightly on the £145.5million in 2021 – while profit should be in line with expectations. Shares plunged 17.8 per cent, or 4.6p, to 21.2p.