Joinery group sees revenues secured at more than £550m
Revenues are up in Howdens Joinery Group’s half year results, but pre-tax profits dipped, affected by exchange rate movements and the cost of growth.
Revenues for the 24 weeks to 10 June 2017 rose to £553m, up from £528.9 in the same period the year before.
Pre-tax profits for the half year dipped to £65.6m, from £74.8m in 2016.
It blamed “adverse currency movements and inflationary pressures” with one third of its cost of goods sold being denominated in euros or US dollars.
Selling and distribution costs, and administrative expenses increased to £288.0m from £266.7m, it said, due to the cost of the 11 new depots it introduced during the last six months.
Howden said that £11.3m had been returned to shareholders as of 9 June as part of a £80m share buyback programme announced in February 2017. The board also approved the payment of an interim dividend of 3.6p per share, up from 3.3p in 2016, which will be paid on 17 November 2017.
Chief executive and founder Matthew Ingle, who announced earlier this year he would be stepping down after more than 20 years at the helm, said: “We delivered a solid revenue performance in the first half in line with our plans for the full year. As expected during H1 2017, we saw currency movements and additional operating costs impacting our year-on-year profitability.
“The sales initiatives which began in Q4 2016 have shown positive results, with UK growth of 4.0% year-on-year in H1 2017 and growth of 6.5% for our most recent period of trading. We continue to develop the range of products and services we offer to broaden the entry-level appeal of the Howdens’ proposition. Our investment programme remains on track and we have begun operations in our new distribution centre in Raunds, Northamptonshire.
“We believe that current market conditions are stable, although we remain watchful given continuing economic uncertainties.”
Ingle founded Howdens in Yorkshire in 1995 and it now has more than 650 depots across the UK. It still manufactures kitchens in the region but is now registered in London.
