Kitchen manufacturer serves up record results
Kitchen supplier Howden Joinery Group has reported record results for FY2021 and announced ambitions to grow its number of depots to 950 in the UK.
The business, which has a factory in East Yorkshire and depots across the region saw profit growth out pace revenue growth, generating revenues of over £2 billion for the year to 25 December 2021, up by over a third on 2020.
This translated to a significant profit before tax of £390m up more than double the figure for 2020 and 50% ahead of the pre-pandemic 2019 figures.
Andrew Livingstone, CEO, Howdens
Andrew Livingstone, chief executive at Howden Joinery Group said: “2021 was a very successful year for Howdens as we both delivered record financial results and progressed our strategic plans for the business.
“We believe there is now potential for at least 950 depots in the UK and we are expanding our presence in France and the Republic of Ireland. We continue to invest in our depot network, market leading products, manufacturing and supply chain, and digital capabilities, all of which help us take advantage of market opportunities.”
Livingston added that the firm’s robust balance sheet “gives us the flexibility to continue to invest in our growth plans for the business”. These growth plans saw the group acquire the UK’s largest supplier of luxury kitchen worktops, Sheridan Fabrications earlier this month.
Alongside the results the business also announced a new £250m share buy-back scheme, as it said it had made an encouraging start to 2022 adding “at present [we have] the momentum for another successful year in 2022 and the plans in place to deliver one”.
Despite this positivity the business did warn that if there was a slow down within its key market of small builders working in owner occupied and or private and public sector rented housing there would be a knock on effect upon its sales.
Howdens share price opened slighty up to 736.27p per share, this remains behind its highest ever value of 919p per share as of the 1 October 2021 but places it in line with its pre-pandemic share value.
