Howden Joinery revenue up as more depots open

Howden Joinery Group published a trading update covering the period from the end of the first half of the year - on 11 June 2016 - to date.

The FTSE 250 company reported a solid performance in the second half of the year to date, including during the important October trading period, and was on track to meet expectations for the full year.

It did caution, however, that the two remaining trading periods together typically accounted for over 10% of annual revenues.

Howden’s total revenue for UK depots in the second half of the year to 29 October was up by 4.1%, achieved in the face of toughening comparators that the board said had been seen since June and the softer trading conditions seen in recent months.

As a result, in the first 11 periods of 2016 total revenue was up 6.3%, rising 4.0% on a same-depot basis.

Gross margin performance had been in line with expectations.

“Since we released our 2016 Half Yearly Report in July, we have opened 10 new depots, resulting in 20 new depots in the UK so far this year and bringing the total to 639,” the board said of its developments.

“In addition, as part of the £55m share buyback programme announced on 23 February 2016, the group has acquired 6.2m shares since July.”

The board said that brought the total acquired this year to 17.5m, for which the consideration was £80.0m.

“This means that we have completed the share buyback programmes announced in February 2015 and 2016.”