SHARES in Topps Tiles went on the slide after it said trading remained challenging, with like-for-like sales down by 7.7 per cent in the first 17 weeks of its new financial year. Overall revenues have slipped by 2.7 per cent.

The shares plunged more than seven per cent, or 3.5p, to 45.25p after the update, giving the company a market value of just over £77m.

Topps Tiles, the UK's largest tile and wood flooring specialist, which has its finance, administrative and IT headquarters at Cheadle Hulme, operates 320 stores in the UK and 21 in Holland.

Chief executive Matt Williams said: "We are managing the business prudently, with emphasis on costs and cash. We have a resilient business model and are confident that we can grow market share in the current tough economic climate."

The figures show trading has deteriorated, as Topps said in May that like-for-like sales for the first six weeks of the year had fallen by just three per cent.