TIDMHWDN
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 growth (1) Growth vs 2022 Growth vs 2019
---------------------------- ----------------------- ------------------------
Total % LFL % Total % LFL %
UK revenue
- Periods 7 to 11 (2.0%) (3.3%) +42.5% +30.5%
- Year-to-date (0.8%) (1.8%) +41.5% +29.9%
- H1 (Periods 1 to 6) +0.6% +0.0% +40.2% +29.2%
International revenue(2)
- Periods 6 to 11 +5.7% (16.8%) +101.4% +14.8%
- Year-to-date +9.9% (12.3%) +101.0% +21.7%
- H1 (Periods 1 to 6) +28.4% +2.7% +120.7% +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 GBP346m with a range of
GBP330m to GBP365m.
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 Nina Coad, David Litterick (Brunswick)
Tel: +44 (0) 207 535 1110 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 GBP2.3
billion and profit before tax of GBP405.8 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 30 December 2023 -
Year 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.
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