Howden Joinery Mulls Dividend Return On Improved Second Half Trading

(Alliance News) - Howden Joinery Group PLC on Monday said it will consider recommencing the payment of dividends by the time it publishes its annual results on February 25, as trading improved in the second half of the financial year to date.

The FTSE 250 kitchens and joinery products supplier said its performance for the six months ended June 13 suffered substantially from the lockdown in the second quarter.

However, since the reopening of all sites in mid-June, UK revenue for the period from June 14 to October 31 grew by 12% year-on-year. For the year-to-date however, total revenue from the UK was down 6.8% year-on-year.

On a local currency basis, Howden said revenue from its French and Belgian depots grew by 33% on a reported basis. Year-to-date revenue was up by 7.9%.

Looking ahead, the group expects to open 15 new depots in the UK in 2020, which will bring the total number of depots in the UK to 747. Four new depots are scheduled to be opened in France.

"I am very pleased with Howden trading performance in the second half to date with sales in periods 7 to 11 being particularly strong. Covid-19 has had a significant impact on all of our lives and Howden's priority remains ensuring that our employees and customers are safe and supported. We have also found new ways of working so that we can manufacture safely in a socially distanced environment and, together with our suppliers, ensure stock availability to support customer needs," said Chief Executive Officer Andrew Livingston.

Shares in Howden Joinery were up 1.8% at 648.40 pence on Monday in London.

By Dayo Laniyan; dayolaniyan@alliancenews.com

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