To supply from local stock
nationwide the small builder's
integrated kitchen and joinery
requirements, assuring best
local price, no-call-back quality
and confidential trade
terms......and to provide the
builder's customer with enough
choice, advice and aftersales to
make a home to be proud of
|£m unless stated||FY13||FY14||FY15|
|Continuing operations (before exceptional items)|
|Revenue - Group||956.5||1,090.8||1,220.2|
|Revenue - UK depots||940.7||1,075.5||1,203.8|
|Profit before tax||135.0||188.8||219.6|
|Basic earnings per share||15.3p||23.2p||27.3p|
|Dividend per share||5.5p||8.4p||9.9p|
|Net cash at year-end||140.5||217.7||226.1|
|Number of depots (UK)||559||589||619|
Howdens is focused solely on the small builder and everything the business does is geared towards making the builder's life easier. Howdens offers builders a relevant, well-designed, high-quality range of kitchens, together with appliances, joinery, flooring and hardware, via trade-only depots that are always in stock. The builder benefits from a confidential discount and good credit terms that allow him to manage his business and determine an appropriate margin for each job he undertakes.
Howdens' depot managers are responsible for their own profit and loss accounts, for hiring local staff, setting local pricing and doing their own local marketing. Managers and staff are highly incentivised to open local trade accounts and build profitable relationships with account holders. Howdens' control of sourcing, range design and specification, manufacturing, distribution and customer credit helps drive an efficient, low-cost business.
At depot level, Howdens has none of the costs associated with kitchen retailers, e.g. showrooms, delivery and installation services and national advertising. A typical Howdens depot occupies around 10,000 square feet, costs £250,000 to fit out and breaks even once it has achieved sales of £650,000. Howdens controls its own supply chain and is investing in the growth and resilience of these operations. The business has also invested in a robust, scalable systems infrastructure that helps ensure consistent product quality and availability at lowest cost.
Howdens is a highly profitable, cash-generative business with significant scope for further growth. The business has identified scope for up to 800 depots in the UK, and expects to open 30 new depots in 2016.
Howdens also expects to be able to realise further growth from the 25% of depots that are not yet mature, and to effect continuing performance improvements across its depot portfolio. Howdens benefits from a flexible, scalable infrastructure that will allow it to deliver further efficiencies as the business grows.
Head of Investor Relations
Howden Joinery Group Plc
40 Portman Square
London W1H 6LT
Tel: Tel: 020 7535 1164
Journalists should contact:
Kate O'Neil/Tom Eckersley/Robbie Hynes,
Tel: +44 (0)207 379 5151
Registered Office and Head Office
40 Portman Square
Registered company number
Howden Joinery Group Plc is registered in England and Wales,
with the no. 02128710