Howdens to return £100m to shareholders

Joinery giant Howdens today announced a £100m share buyback programme and remained bullish on the year ahead as it announced its annual results.

Despite a challenging marketplace, revenue and profits were in line with last year. In the 12 months to end of December, revenue was up 0.5% to £2.32bn, while pre-tax profits inched up 0.2% to £328m.

The company said in the prevailing macroeconomic environment it anticipates the UK kitchen market to contract again in the year ahead. However, its differentiated in-stock, trade-only business model, strong cash generation and robust balance sheet gives it a competitive edge while returning surplus cash to shareholders.

Howdens said it had offset inflationary costs increases through efficiency savings and cost control while investing in its medium-term strategic initiatives.

Investment included 29 new depots, and 76 depot reformats in the UK, 11 new kitchen ranges, further digital development and upgrades to manufacturing and supply chain.

Andrew Livingston, chief executive, said: “Howdens performed well in a challenging market, gaining further market share. We continued to invest in developing our kitchen and joinery ranges, opening more depots, and in new digital capabilities. We are also investing in our manufacturing operations and supply chain to support our trade customers with high-quality, easy-to-fit products that are reliably in stock.

“Whilst we anticipate the kitchen market is likely to contract further in 2025, we are confident that our differentiated model, combined with our strategic initiatives, mean we are well placed to gain further market share. Reflecting the group’s strong financial position, we have announced today a new £100m share buyback programme while continuing to invest in the business.”