Howdens continue to deliver strong growth

On Wednesday, Howden Joinery Group Plc announced a trading update for the first four periods of 2018 (16 weeks to 21 April 2018).

Trading Performance

Howden Joinery UK increased revenue by 14.8% overall and by 13.3% on a same depot basis compared to the equivalent periods last year, with sales growth driven primarily by an increase in volumes, an extra week of trading in 2018 compared to 2017 and benefitted from a weak comparative.

The 53rd week in the 2017 financial year impacted the year-on-year pattern of trading and there was an extra week of trading in the first period of 2018. Excluding the first two weeks of Period 1, Howden Joinery UK revenue in 2018 increased by 10.0% overall and by 8.6% on a same depot basis.

Looking forward, they are on track with their plans for the year as a whole and note the tougher comparatives from the prior year as the year progresses and they remain watchful of market conditions.

While they did not increase prices at the start of the year, they did implement an increase at the start of April.

Business developments

Howden Joinery trades from 664 depots in the UK, with 3 new depots opened so far this year. They plan to open up to around 30 new depots in the UK during 2018. They are on track to refresh their product offering and expect to bring 19 new ranges to market during 2018.

The Group has acquired 4.8m shares in the year to date for a consideration of £22.8m.

Next scheduled announcement

The Group will release its 2018 Half Year Report on 26 July 2018. 

Source: Insight DIY Team

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