Howden Joinery Group PLC Trading Update (6876G)
08 November 2018 - 6:00PM
UK Regulatory
TIDMHWDN
RNS Number : 6876G
Howden Joinery Group PLC
08 November 2018
8 November 2018
Howden Joinery Group Plc
TRADING UPDATE
Howden Joinery Group Plc ('Howdens' or the 'Company') today
announces a trading update for 17 June 2018 to 3 November 2018
(Period 7 to Period 11).
Howdens has delivered a good trading performance, including the
important October/November trading period (Period 11). The Company
remains on track to meet the Board's expectations for the full
year.
Trading
Howdens UK depots' total revenue for Periods 7 to 11 increased
by 7.5% and by 6.1% on a same depot basis on the comparable Periods
in 2017, with the increase in revenue driven mainly by volume
growth. Gross margin performance during Periods 7 to 11 has
developed in line with management expectations.
Business developments
Howdens expects to add a total of around 33 depots in the UK in
2018, taking the total number of depots in the UK to around 694. We
now expect an incremental cost in H2 2018 resulting from the
increase to our previously announced depot rollout programme.
We note that, as Period 11 in 2018 ends in early November,
receipts for the period can fall into financial year 2019, which
starts on 30 December 2018. As a result of these timings, we expect
an additional working capital outflow at the end of financial year
2018 of up to GBP50m, to be collected at the start of financial
year 2019.
Howdens has acquired 5.0m shares since July 2018, and a total of
12.8m shares in 2018 to date, at a cost of GBP62.1m. As a result,
we have completed the GBP80m buyback programme that was announced
in February 2017 and half of the GBP60m programme announced on 1
March 2018.
Next scheduled announcement
The Group will release its 2018 Preliminary Results on 28
February 2019.
Enquiries
Investors/analysts:
Paul Sharma
Head of Investor Relations + 44 (0) 20 7535 1164/+44 (0) 7585
992943
Media:
Citigate Dewe Rogerson
Simon Rigby + 44 (0) 20 7282 2847/Kevin Smith +44 (0) 20 7282
1054
Note to editors:
Howden Joinery Group Plc is the parent company of Howden
Joinery. In the UK, Howdens is engaged in the sale of kitchens and
joinery products to trade customers, primarily small local
builders, through approximately 675 depots. Around one-third of the
products it sells are manufactured in the company's own factories
in Runcorn, Cheshire, and Howden, East Yorkshire. The business
operates in France and has trials in Belgium, Holland and
Germany.
Please see for more information:
www.howdenjoinerygroupplc.com
This information is provided by RNS, the news service of the
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Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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