Shares in Topps Tiles soared 10.7 percent on Wednesday morning.
In a positive trading update, the group said pre-tax profits for the year are expected to be at the top end of market expectations.
Like-for-like sales increased by 1.2 percent in the 13 weeks to September 29 and the trading update said adjusted revenues have now risen to £215 million from £211.8 million in 2017.
Chief executive officer, Matthew Williams, said in a statement: “I am pleased to report an improvement in trading over the final quarter which has enabled the group to post a full year sales result which is slightly ahead of the top end of market expectations and which represents an outperformance of the overall tile market.”
“Our core Topps Tiles business is a well invested, cash generative market leader with a proven strategy and we continue to make good progress with our expansion into the commercial segment of the UK tile market which will be an important source of future growth for the group.”
Topps Tiles has 370 sites across the UK.
Liberum analysts said in a note to clients: “There has been some bounce back in activity levels following the quieter summer period, although we keep a prudent view on outer years at this stage. Importantly, Topp’s continues to demonstrate that it remains very well positioned to benefit when a more sustained market recovery takes hold.”
“The group’s market-leading proposition continues to resonate with consumers and there has been good progress in developing the longer-term opportunities within the UK commercial tile market.”
The trading update comes after a difficult year for the group. Topps Tiles saw half-year profits fall by almost a third after the Beast from the East and the timing of Easter affected sales.
Shares in the group (LON: TPT) are currently trading up 12.60 percent at 70,60 (1222GMT).