Howden Joinery 'in good shape' after well-built first half
Howden Joinery assembled some solid numbers in its half-year report on Thursday, with group revenue rising to £619.4m in the 24 weeks to 16 June, compared to £553m in the comparative period last year.
The FTSE 250 kitchens and joinery firm said revenue from UK depots was £604.7m, up from £539.5m.
Gross profit improved to £379.5m from £354.6m, although its gross profit margin fell to 61.3% from 64.1%.
Operating profit was £69.6m, rising from £66.6m, and profit before tax was ahead at £68.8m from £65.6m.
Basic earnings per share grew to 8.9p from 8.4p, with the board declaring an interim dividend per share of 3.7p, marginally higher than the 3.6p paid this time 12 months ago.
Net cash at period end stood at £213.3m, down slightly from the £215.1m Howdens boasted at the end of the first half last year.
Chief executive Andrew Livingston, who joined in January said he had been "impressed with the outstanding and differentiated service" given to builder customers.
“We delivered a solid performance in the first half, as we press ahead in a competitive market.”
Livingston said the company’s “leading” service proposition was supported by the “unique combination” of “locally empowered depots” and strong supply operations.
“In the first half, our supply chain enabled us to bring twelve new kitchen ranges to the market, as well as a new grey oak cabinet, thin laminate worktops and a new range of doors.
“Our investment programme in manufacturing, distribution, depot rollout and IT remains on track.
“Howdens is in good shape with opportunities ahead of us, as we develop our product offering, bring even more convenience to the building trade and generate further operational efficiencies across the business.”
Broker Numis said it was "marginally" trimming its estimates to account for FX headwinds, but believe the investment thesis "remains very positive".