Listed kitchen supplier swings to a loss

The effects of the Covid-19 pandemic has seen Howden Joinery Group swing to a loss for the first half of 2020.

The listed group’s results were significantly impacted by the lockdown, resulting in a loss before tax of £14.2m compared to a profit of £78.1m in the prior year period.

Howdens reported group revenue in the first half of £465m, down from £652.6m in 2019.

Chief executive, Andrew Livingston, said: “Howdens performance in the first half of 2020 was materially impacted by COVID-19, with sales for the period being significantly lower than last year.

“The shortfall in sales all occurred in the second quarter, which coincided with the start of lockdown in the UK, and led to us making an overall loss of £14m in the first half.

“Our performance improved period on period in the second quarter as we found ways to re-open for business safely and with full stock availability. UK Depot Sales in the first four week period of the second half were up 2% year on year.

“During the period our first priority has been the health and wellbeing of our staff and our customers, whose ability to work was curtailed by lockdown. We introduced new ways of operating, provided new services to support our customers during this difficult time and reduced cash expenditure, whilst protecting essential areas.

“Given the COVID related and other economic uncertainties, we remain cautious about underlying market conditions, however we believe a more challenging and demanding marketplace can play to the advantage of our in-stock, local model.”

The company also said that during the course of 2020, its now plans to open around 20 depots in the UK and France.

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