Management at Topps Tiles have overcome a bid by its biggest shareholder to get rid of the chairman and bring in two new board members.
Topps won overwhelming support at its AGM to defeat changes proposed by Austria-based investor MS Galleon GmbH (MSG) – which owns almost 30 per cent of shares in the tile retailer.
Topps chairman Darren Shapland said pretty much the only shareholders to vote for his removal were MSG.
He said: “The board would like to thank shareholders for the support received at today’s meeting.
“We were pleased that shareholders supported the board’s recommendations, with an average of 99.3 per cent of shareholders who voted – other than MSG – opposing the requisitioned resolutions.
“While we have always sought to maintain constructive engagement with MSG, the board has also been clear that its responsibility is to act in the best interests of Topps shareholders as a whole.
“We believe strongly that MSG’s proposals exposed Topps shareholders to a number of serious conflicts of interest between MSG’s role as a significant shareholder, supplier and potential competitor to Topps.
“We welcome the strong support for the board's position received today from other shareholders and the board will continue to engage with, and seek constructive dialogue with, all shareholders.”
Topps board member Keith Down said: “The board has been unanimous in its rejection of the requisitioned resolutions.
“We are pleased to have secured strong backing from other investors at today’s meeting and, in particular, we note the significant vote of support received for the chairman.
“We thank shareholders for their engagement and support around the AGM and over the year.”
Topps Tiles had previously said MSG wanted more control of the retailer in order to supply it with more stock from its own tile maker Cersanit. Topps had said that would not be in the interests of the business or its shareholders.
It also said MSG was planning a UK launch of its own tile retailer Nexterio – in direct competition to Leicestershire-based Topps Tiles.
MS Galleon GmbH, meanwhile, had said Topps’ growth had stalled while competitors such as Victoria Plumbing and Tile Mountain have thrived post-Covid.
Last week Topps Tiles management said year-on-year sales were up 10 per cent in the last three months of 2022.
Half of the growth, it said, was down to the acquisition of Midlands-based online retailer Pro Tiler Tools back in March.
MSG was invited to comment on the AGM.
