Howdens has reported sales consistent with 2022’s £2.3 billion record year in its latest trading update, but has warned profits won't hit the same heights.
A robust performance in the third quarter has been highlighted by the East Yorkshire kitchen giant, a FTSE-100 constituent “in the face of continuing macro-economic headwinds”. Reported sales were 2 per cent lower, however a strong performance as the period closed - with lead times into the final quarter - was stressed, so too non-recurring business from its acquisition of Normanton-based worktop manufacturer Sheridan.
Read more:
- Humber Freeport's £25m seed capital investments
- Pensana outlines huge funding boost for Saltend magnet metals plant
Andrew Livingston, chief executive, said: "Howdens has continued to trade well since the half year and has gained market share. UK depot sales during our peak trading period remained consistent with last year's record performance. This was a significant achievement by our teams given the macro-economic headwinds and demonstrates the value of our culture and a differentiated business model. Our balance sheet and cash generation remain strong and we continue to invest in our strategic initiatives to develop the operating model, which strengthens our competitive advantage."
The board maintains its full year expectations, though errs towards the lower end of the range of analysts’ consensus, which had anticipated pre-tax profits of between £330 million and £365 million. Results are anticipated in February. Last year saw it top £400 million, a 20 per cent increase on 2021 when it broke through the £2 billion sales mark.
Mr Livingston also confirmed UK chief operating officer Any Watts’ move to a new leadership role to develop existing international operations, where sales were up 5.7 per cent in the period. Stuart Livingstone is now in post as UK trade director following a successful handover period.
He told how Howdens continues to invest for future growth, with the opening of up to 33 new UK depots, revamping around 90 older UK depots and around 10 new international depots by the end of the year.
It has been supported by 25 new kitchen ranges, with benefits realised from continued supply chain enhancements, including the full availability of its cross-docking facility. Investments have also been made to expand manufacturing capabilities, focused on Howden, near Goole, and Runcorn in Cheshire.
Shares were down 2.8 per cent in the day's trading, to 625.4p, down almost 14 per cent from the last trading update in July (726.4p).
