Galiform PLC
22 November 2007
Galiform Plc
TRADING UPDATE
The trading and development of Galiform has continued on track, with the
improved sales performance of Howden Joinery evident in the summer continuing
throughout the autumn. The performance across the Group reflects the benefit of
the refocusing of effort that has been achieved following the disposal of MFI
last year.
Howden Joinery
At the time of the announcement of our 2007 Interim Results (6th September), we
reported that there had been an upturn in trading over the summer. Although the
wet weather may have had some positive impact in July and August, as our primary
customer - the small local builder - chose to work indoors, good trading has
continued throughout the autumn, and in particular, the important October
trading period, when sales are typically more than double the level seen in
other periods.
Total sales for the first eleven periods of the year, to 3 November, were 13.9%*
higher than last year, 9.3%* up on a same depot basis. The Howden Joinery gross
margin for the year to date remained in line with that seen in 2006 as a whole.
The increase in sales reflects the benefit of improvements to the product range
sold, both in terms of the scope of the kitchens offered, and new products
introduced to meet the ever-higher aspirations of all end-consumers, such as
'range' cookers. This has led to both increased volume and additional 'add-on'
sales, increasing the average value of kitchen sales.
Also reflected in this performance, and of particular importance in our key
October trading period, were the improvements that have been made in the supply
chain over the last year or so. As well as contributing to the development of
the product range, these also meant that confidence about product availability
has risen, enabling depot staff to set ambitious targets for the period and more
aggressively pursue sales opportunities.
The business is now trading from 426 depots. With 10 depots currently being
fitted out, it is expected that 54 depots will open in 2007, bringing the total
to 436 by the end of the year.
Supply
Arrangements for the termination of product supply and logistics services to MFI
are proceeding to plan, with final deliveries scheduled for just over four weeks
time, on 21 December. The restructuring of Supply is progressing to plan and a
full update on the restructuring will be provided in the 2007 Preliminary
Results, to be announced on 6 March 2008.
Outlook
Financial performance for the year is expected to be in line with management's
previous expectations.
* Note The inclusion of a 53rd week in 2006 means that the business traded for
all of the year-to-date in 2007, whereas in 2006 the depots were closed for the
first week, which covered the Christmas shutdown. These figures have been
calculated by comparing the first eleven periods in 2007 with the same calendar
period in 2006.
Enquiries
Investors/analysts
Gary Rawlinson Head of Investor Relations, +44 (0)207 535 1127
Galiform +44 (0)7789 397527
Media
Brunswick
Fiona Laffan/ Nebat Sukker +44 (0)207 404 5959
This information is provided by RNS
The company news service from the London Stock Exchange
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