Interim Management Statement

RNS Number : 8021D

Howden Joinery Group PLC

02 May 2013

 



Howden Joinery Group Plc

INTERIM MANAGEMENT STATEMENT

Howden Joinery Group Plc ('the Group') is today publishing its Interim Management Statement covering the year to date.  Trading information is in relation to the first four periods of 2013 (to 20 April 2013).

The Board is pleased with performance so far this year, which has seen further solid trading in line with our expectations, whilst remaining cautious about the outlook for the rest of the year, given the prevailing economic environment.

Trading

In the first four periods (16 weeks) of 2013, Howden Joinery UK revenue was up 9.3% on the corresponding periods last year, increasing by 7.6% on a same depot basis.  As previously, explained, sales in the first period of the year benefited from an additional week of trading.  Excluding the first period, total revenue in the three periods since then increased by 4.1%, there being no distorting factors.

The gross profit margin performance is in line with market expectations for the full year ¹.

Note 1: Currently, most analysts are believed to be expecting gross margin to be between 60.5% and 61.5%.

Business developments

We are currently planning to open around 20 to 30 new depots this year.  With one new depot having been opened so far, Howden Joinery is now trading from 530 depots in the UK.

We are continually seeking opportunities to improve the performance of our business operations.  To this end, we have reconfigured our transport operations to better reflect the geographical mix of our sales in the UK and improve service to our depots.  This will result in an exceptional charge and cash cost in respect of continuing operations in the first half of 2013 of about £5m.  These changes will deliver a number of important service and operational improvements.

There have been no material changes to the financial position of the Group in the period save as a result of the usual impact of the level of trading and those other matters disclosed herein.

Next scheduled announcement

The Group will release its 2013 Half Yearly Report on 25 July 2013.

Enquiries

Investors/analysts:

Gary Rawlinson

Head of Investor Relations   [phone]

                                             [phone]

Media:

Brunswick [phone]

         Kate Holgate                Tim Danaher

 

END

 

 

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