Less Ads, More Data, More Tools Register for FREE

Pin to quick picksHowden Joinery Regulatory News (HWDN)

Share Price Information for Howden Joinery (HWDN)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 872.50
Bid: 872.00
Ask: 873.00
Change: 6.50 (0.75%)
Spread: 1.00 (0.115%)
Open: 873.00
High: 875.50
Low: 865.50
Prev. Close: 866.00
HWDN Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Trading Update

2 Nov 2023 07:00

RNS Number : 1060S
Howden Joinery Group PLC
02 November 2023
 

Robust performance with continued market share gains

Howden Joinery Group Plc, the UK's largest specialist trade kitchen supplier, today announces a trading update for the period ended 28 October 2023.

 

Current trading

Revenue growth1

Growth vs 2022

Growth vs 2019

Total %

LFL %

 Total %

LFL %

UK revenue

- Periods 7 to 11

- Year-to-date

- H1 (Periods 1 to 6)

 

(2.0%)

(0.8%)

+0.6%

(3.3%)

(1.8%)

+0.0%

+42.5%

+41.5%

+40.2%

+30.5%

+29.9%

+29.2%

 International revenue2

- Periods 6 to 11

- Year-to-date

- H1 (Periods 1 to 6)

 

+5.7%

+9.9%

+28.4%

 

(16.8%)

(12.3%)

+2.7%

 

+101.4%

+101.0%+120.7%

 

+14.8%

+21.7%

+40.8%

1 2019 is shown being the last pre-COVID year. Same depot basis (LFL) for any year excludes depots opened in that year and the prior year.

2 International is shown in local currency. Five French depots were closed in H1 2022.

3 2023 Full Year Profit Before Tax (PBT) consensus published on the Company's website is an average of £346m with a range of £330m to £365m.

 

The Group delivered a robust performance in Periods 7 to 11, in the face of continuing macro-economic headwinds. Reported sales were 2.0% lower than 2022 and 42.5% ahead of 2019, with the underlying performance consistent with Howdens' record sales in the prior year. Reported sales are stated before:

 

§

Strong sales in the final few days of the period which included a higher proportion of 'made-to-order' products (e.g. Howdens work surfaces, paint-to-order) where lead times are longer. These will be recognised in subsequent periods.

§

Third party trade sales associated with the Sheridans business, which the Group acquired last year which are non-recurring.

 

Sales in the international depots (c.3% of Group revenue) during Periods 6 to 11 were 5.7% ahead of the prior year despite challenging market conditions. We have disclosed Periods 6 to 11 as it is a more meaningful representation of our performance due to the previously announced de-risking of our French peak trading period over two trading periods this year (Periods 6 and 7) rather than Period 7 only. This approach to peak trading is now consistent with the UK.

 

Andrew Livingston, Chief Executive said: "Howdens has continued to trade well since the half year and has gained market share. UK depot sales during our peak trading period remained consistent with last year's record performance. This was a significant achievement by our teams given the macro-economic headwinds and demonstrates the value of our culture and a differentiated business model. Our balance sheet and cash generation remain strong and we continue to invest in our strategic initiatives to develop the operating model, which strengthens our competitive advantage."

Outlook

Given the Group's continued resilient trading, the Board maintains its full year expectations for 2023, but recognising a more uncertain macro-economic outlook this is expected to be towards the lower end of the range of analysts' consensus forecasts.3

 

Operations

As previously announced, Andy Witts, UK Chief Operating Officer (COO) has moved to a new leadership role to develop Howdens' existing international operations. Following a successful handover period, Stuart Livingstone is now in post as UK Trade Director responsible for UK trade operations.

Our differentiated business model and well-established strategy continues to serve us well through the macro-economic cycle. We continue to invest for future growth with the opening of up to 33 new UK depots, revamping around 90 older UK depots and around 10 new international depots by the end of the year. New product introductions for 2023 included 25 new kitchen ranges. Benefits have been realised from continued supply chain enhancements including the full availability of our XDC cross-docking facility. Investments have also been made to expand our manufacturing capabilities.

 

Patent box

The Group previously announced during 2023, its claim under the Patent Box Tax Relief Scheme which allows companies to benefit from investments made in intellectual property including new product innovations, with the success of the claim subject to review by HMRC. Following consultation with HMRC, the Group is confident that the patent box claim will proceed. As previously indicated, it expects to deliver an ongoing reduction of c.3% to Howdens effective tax rate, assuming current marginal tax rates.

 

For further information please contact

Howden Joinery Group Plc

Media Enquiries

Paul Hayes, CFO

Tel: +44 (0) 207 535 1110

Nina Coad, David Litterick (Brunswick)

Tel: +44 (0) 207 404 5959

Mark Fearon, Director of IR and Communications

Mob: +44 (0)7711 875070

 

Note to editors:

1. About Howden Joinery Group Plc

Howdens is the UK's number one specialist kitchen and joinery supplier. In the UK, we sell kitchens and joinery products to trade customers, primarily local builders, through 808 depots at the end of 2022. In 2022, the business generated revenues of around £2.3 billion and profit before tax of £405.8 million. Over one-third of Howdens' cost of goods sold are products manufactured in house at its two principal factories in Runcorn, Cheshire, and Howden, East Yorkshire both of which have achieved carbon neutral status. At the end of 2022, Howdens operated 60 depots in France and Belgium and five depots in the Republic of Ireland.

 

2. Financial calendar

Reporting period

Scheduled date

Financial Disclosure (Revenue)

End of Financial Year 2023

30 December 2023

-

Full Year results

29 February 2024

Trading Periods 1-13 (2023)

Trading update

30 April 2024

Trading Periods 1-4 (2024)

Half Year Results

25 July 2024

Trading Periods 1-6 (2024)

3. Cautionary statement

Certain statements in this announcement are forward-looking. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance that these expectations will prove to have been correct. Because these statements contain risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. We undertake no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
TSTNKDBNOBDDKDK
Date   Source Headline
17th Jun 20243:00 pmRNSDirector/PDMR Shareholding
11th Jun 20242:01 pmRNSHolding(s) in Company
3rd Jun 20249:00 amRNSTotal Voting Rights
31st May 20245:26 pmRNSHolding(s) in Company
31st May 20249:00 amRNSHolding(s) in Company
29th May 20242:47 pmRNSHolding(s) in Company
29th May 202410:12 amRNSDirector/PDMR Shareholding
28th May 20249:35 amRNSHolding(s) in Company
23rd May 20244:58 pmRNSHolding(s) in Company
23rd May 20249:30 amRNSDirector/PDMR Shareholding
20th May 202410:43 amRNSSIP PDMR Notification
7th May 20242:00 pmRNSDirectorate Change
2nd May 20242:25 pmRNSResult of AGM
2nd May 20249:36 amRNSDirector/PDMR Shareholding
2nd May 20249:00 amRNSAGM Statement
1st May 20249:00 amRNSTotal Voting Rights
30th Apr 20247:00 amRNSTrading Update
22nd Apr 20241:29 pmRNSHolding(s) in Company
19th Apr 20244:10 pmRNSSIP PDMR Notification
15th Apr 20244:32 pmRNSHolding(s) in Company
10th Apr 20245:25 pmRNSHolding(s) in Company
10th Apr 20242:30 pmRNSDirector/PDMR Shareholding
10th Apr 20249:35 amRNSTransfer of Treasury Shares
2nd Apr 20249:00 amRNSTotal Voting Rights
26th Mar 202412:51 pmRNSDirector/PDMR Shareholding
20th Mar 20244:06 pmRNSSIP PDMR Notification
20th Mar 20249:02 amRNSAnnual Report and Accounts and Notice of AGM
20th Mar 20249:00 amRNSAnnual Report and Accounts and Notice of AGM
18th Mar 20245:04 pmRNSHolding(s) in Company
12th Mar 20242:27 pmRNSHolding(s) in Company
12th Mar 20242:09 pmRNSHolding(s) in Company
1st Mar 202411:30 amRNSTotal Voting Rights
29th Feb 20247:00 amRNS2023 Full Year Results
20th Feb 20249:00 amRNSSIP PDMR Notification
1st Feb 20249:00 amRNSBlock listing Interim Review
1st Feb 20249:00 amRNSTotal Voting Rights
19th Jan 20244:17 pmRNSSIP PDMR Notification
2nd Jan 20249:00 amRNSTotal Voting Rights
19th Dec 20233:49 pmRNSSIP PDMR Notification
8th Dec 20235:59 pmRNSDirector/PDMR Shareholding
1st Dec 20239:00 amRNSTotal Voting Rights
24th Nov 202310:00 amRNSChange of Registered Office
21st Nov 20231:07 pmRNSDirector/PDMR Shareholding
3rd Nov 202310:00 amRNSDirector/PDMR Shareholding
3rd Nov 20239:00 amRNSDirectorate Change
2nd Nov 20237:00 amRNSTrading Update
1st Nov 20239:00 amRNSTotal Voting Rights
13th Oct 20234:17 pmRNSHolding(s) in Company
10th Oct 20234:28 pmRNSSIP PDMR Notification
2nd Oct 20239:00 amRNSTotal Voting Rights

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.