Howden Joinery Group's first half profits boosted by new depots

The supplier of kitchens and joinery products said pre-tax profit was £74.8m in the 24 weeks to 11 June 2016, up from £59.2m in the 24 weeks to 13 June 2015.

Group revenue rose 9.6% to £528.9m, including a 9.1% gain in UK depot revenue. The company said revenue was boosted by opening new depots and increasing the number of customer accounts.

Ten new depots have been opened in the UK so far this year, bringing the total to 629.

Basic earnings per share during the period increased to 9.1p from 7.1p. Gross profit margin edged up to 64.5% from 63.7%, reflecting price increases and the lagged impact of adverse currency movements.

Net cash at the end of the period came to £182.7m, up from £223.3m last year.

The dividend was raised to 3.3p from 2.8p.

"The good performance in the first half of the year was in line with our expectations for 2016, with good price progression being seen,” said chief executive Matthew Ingle.

"With the outcome of the referendum last month, there is clearly a heightened degree of uncertainty as to how demand in the rest of the year will pan out. At this stage, we are continuing with our plans. That said, we remain watchful and will quickly take whatever steps are appropriate to the market conditions as we find them.”

Shares rose 1.54% to 420.38p at 0905 BST.