Howden Joinery Group sees sales soar

KITCHEN-unit supplier Howden Joinery Group said it expected pre-tax profit for 2010 to be ahead of current market estimates as it benefited from price rises earlier in the year. However, the company said it remained cautious about its 2011 outlook.
By The Newsroom
Published 4th Nov 2010, 12:21 BST
Updated 4th Nov 2010, 12:21 BST

Howden Joinery, formerly known as Galiform, said it was released from all obligations related to leases of a further four of its properties, after it paid 4.5m to the landlords.

"For the year to date, the number of legacy properties has been reduced by 13, to 42, involving cash payments to the landlords totalling 19m and thereby mitigating total future costs of over 70m," the company said.

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The interim management statement said: "Trading conditions have remained stable since the end of the first half of the year.Sales between the end of the first half of the year and the end of October from Howden Joinery UK depots were 6.7 per cent higher than the corresponding periods last year."

The statement added: "We have continued to focus on gross profit margin throughout the business. Along with the benefit seen from the price rise implemented earlier in the year, this has meant that the gross profit margin has continued to improve since the end of the first half of the year."

Since the company published its half-yearly report in July 2010, it has opened a further four depots, bringing the total to 482. The company is on course to have around 490 open by the year-end.

Analysts on average expect a full-year pre-tax profit of 79.6m. Howden Joinery shares have gained a quarter of their value since the company posted a four-fold increase in first-half profit in July.

The group will release its 2010 preliminary results on March 3, 2011.