Joinery group reports revenue rise while pre-tax profits dip

Pre-tax profits at Howdens Joinery Group dipped to £232m in 2017, while Group revenues at the firm increased to £1.4bn as it opened 19 new depots across the UK.
The firm published its full-year results for 2017 this morning, which showed pre-tax profits were down to £232m from £237m in 2016. Group revenue was £1.4bn – a rise from £1.3bn in 2016.
The joinery group said it had opened 19 new depots in the UK during 2017, with one opened in early 2018, bringing total to 662. It also completed an upgrade of its manufacturing facility in Howden, East Yorkshire.
It made capital expenditure of £48.5m as the firm continued to invest in supply operations to support further growth and increase resilience.
Chief executive, Matthew Ingle, said: “Howdens delivered a positive set of results in 2017, with sales increasing by 7.4% to £1.4bn. Although gross profit increased year-on-year, as expected, we saw currency headwinds and additional operating costs, including those related to a 53rd week, impact year-on-year profitability.
“The service proposition that Howdens provides to our small builder customers is supported by the unique combination of our locally empowered depots and our supply operations.
“In 2017, our supply chain enabled us to bring 26 new kitchen ranges to market and refresh our ranges of appliances and fittings, providing a key driver for our sales growth in our depots during the year. We also saw a strong volume response to our sales initiatives as we continue to adapt our pricing to meet a changing market.
“We continue to invest in all aspects of the business to ensure their resilience and in order to have sufficient capacity to take advantage of the opportunities we see before us. We upgraded our manufacturing capabilities in Howden and Runcorn during the year. Our new distribution facility at Raunds was operational for bulk storage in our key trading period in October and will be fully ready for our peak trading period this year. We will continue to refresh our product offering and expect to bring 19 new ranges to market during 2018.
“At present, we see the robust sales performance of the second half of 2017 continuing into 2018. We believe that current market conditions are stable, although we remain watchful given continuing economic uncertainties.”