November surge sees manufacturer increase its profit forecast by £15m
A surge in sales in November has boosted Howden Joinery so that it now expects pre-tax profits to be about £15m higher than previously expected.
The manufacturer has this morning revealed it expects its pre-tax profits for the 2020 financial year, which ends on December 26, to be 10% higher than the top end of current forecasts. Analysts had previously set a range of £123m-£152m. However despite this improvement it still expects to be more than £90m behind its 2019 pre-tax profits of £261m.
Sales increased by 19% in the first four weeks of November, which has pulled up its year-to-date performance to be 5% below last year despite the impact of the pandemic.
The company’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.
Howden’s share price has been trading strongly since the summer. Last night’s close of 642p was 60% higher than its year low in March, while its shares were up 9% in early trading to above 700p, valuing the group at more than £4bn.
