Built for the Trade
Annual Report
andAccounts 2025
Annual Report and Accounts 2025 Howden Joinery Group Plc
2025
Empowered depot teams
support the needs of the
local builder
Backed by UK manufacturing,
global sourcing and an
efficient distribution network
970
local depots
c.38%
volume of products
manufactured as %
of cost of goods sold
550k
local customers
+300
global suppliers
Our business is about helping our trade customers
achieve exceptional results
Howdens at a glance
A well-established strategy
to deliver profitable growth
Leading positions in attractive
markets withopportunities
to gainshare
A differentiated business
model with benefits of scale
and local trade relationships
Sustainable growth, sector-
leading margins andstrong
cash generation
Core strengths
• Trade-only focus and the best local prices.
• Local delivery model – 88% of customers are less than
5 miles from a Howdens depot.
• Product leadership – always in-stock and easy to fit
to get the job done.
• Efficient UK-based manufacturing, global sourcing
and our own distribution fleet.
12k
employees
11mft
2
UK footprint
20k
kitchen and
joinery products
99.9%
availability
from primary
distribution
to depots
Strategic Report
Trade-only: focused on
our customers’ needs
Products immediately
available locally
Knowledgeable depot teams
to support the builder
Market-leading kitchen
and joinery product ranges
An empowered, depot-led
business, close to the trade
Competitive
confidential pricing
A unique business model focused on
long-term customer relationships
and exceptional service
See page 16 for more information
Financial Statements
Additional Information Governance
01
Howden Joinery Group Plc
Annual Report & Accounts 2025
Howden Joinery Group Plc
Annual Report & Accounts 2025
Strategic Report
Strategic Report
Strategic Report Strategic ReportPage Title Page Title
2024 £2.3bn
2025 £2.4m
2024 £328m
2025 £345m
2024 £344m
2025 £345m
2024 45.6p
2025 49.2p
2024 £115.9m
2025 £116.6m
2024 21.2p
2025 21.9p
2024 £122m
2025 £156m
2024 61.6%
2025 62.7%
2024 £339m
2025 £355m
2023 £2.3bn
2023 £328m
2023 £283m
2023 46.5p
2023 £114.1m
2023 21.0p
2023 £119m
2023 60.8% 2023 £340m
2021 £2.1bn
2021 £390m
2021 £515m
2021 53.2p
2021 £133.6m
2021 19.5p
2021 £86m
2021 61.6% 2021 £402m
2022 £2.3bn
2022 £406m
2022 £308m
2022 65.8p
2022 £115.0m
2022 20.6p
2022 £141m
2022 60.9% 2022 £415m
Revenue
£2.4bn
Gross
margin
62.7%
Operating
profit
£355m
Earnings
per share
49.2p
Profit
before tax
£345m
Dividends
per share
21.9p
Dividends
paid in year
£117m
Net cash
at year end
£345m
Investment in
assets – capex
£156m
Performance in 2025
Howdens advanced on all fronts in the year.
We gained market share and delivered a strong
operational performance with profit growth
ahead of sales.
We continued to invest in our strategic initiatives, helping our trade
customers win more business while making our operations more
efficient and productive.
Operational highlights
Continued
progress against
our ESG goals
Making more
products in our
own UK factories
Continuing to
strengthen our
digital offering
23
UK depot
openings
3
new depots
in Republic
of Ireland
24
new kitchen
ranges
Financial highlights
Financial Statements
Additional Information Governance
03
Howden Joinery Group Plc
Annual Report & Accounts 2025
Strategic Report
02
Howden Joinery Group Plc
Annual Report & Accounts 2025
Strategic Report
Strategic Report Performance in 2024
03
Strategic Report Page TitleStrategic Report Page Title
Attractive end markets
Aggregate UK market value of
c.£11bn* versus UK sales of £2.3bn
in 2025
UK Kitchen market around £6bn* by
value as at the end of 2025
• Room to increase kitchen market share which
remains relatively fragmented
Addressable value of other
established categories around £5bn*
• Our total share of these categories is lower
than our share of kitchen market
Non-residential
90%
10%
95%
5%
Significant UK growth opportunities
Residential
Repair
maintenance &
Improvement
(RMI)
% Howdens’ revenue
New construction
* Howdens’ estimates based on proprietary data – 2025
Kitchens
£0bn
£2bn
£4bn
£6bn
£8bn
£10bn
£12bn
Other Combined Howdens UK
Market value of established UK categories
Contents
Strategic Report
How we create value
Financial Statements
Our financial performance
Governance
How we preserve value
Additional Information
Additional information
142 Independent auditor’s report
157 Consolidated income statement
157 Consolidated statement of
comprehensive income
158 Consolidated balance sheet
159 Consolidated statement of
changes in equity
160 Consolidated cash flow statement
161 Notes to the consolidated financial
statements
197 Company balance sheet
198 Company statement of changes in equity
199 Notes to the Company financial statements
205 Five year record
206 TCFD reporting
214 Parent company and subsidiaries
215 Shareholder and share capital information
217 Shareholder ranges
217 Corporate timetable
218 Advisors and registered office
68 Corporate governance report
70 Board of Directors
74 Executive Committee and
Company Secretary
76 Key Board activity
78 Directors' duties (Section 172(1) Statement)
80 Stakeholder engagement
88 UK Corporate Governance Code:
application and compliance
94 Nominations Committee report
102 Remuneration Committee report
126 Audit Committee report
134 Sustainability Committee report
137 Directors’ report
139 Non-financial and sustainability information
01 Howdens at a glance
02 Performance in 2025
08 How we create value
12 Our purpose, our culture & values,
our market, our strategy and
our business model
18 Chairman’s statement
21 Chief Executive Officer’s review
28 Key performance indicators
30 Financial review
36 Risk management and principal risks
42 Sustainability matters
62 Going concern and Viability statements
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Financial Statements
Additional Information Governance
05
Howden Joinery Group Plc
Annual Report & Accounts 2025
Strategic Report
Howden Joinery Group Plc
Annual Report & Accounts 2025
Strategic Report
04 05
Strategic Report Page TitleStrategic Report Page Title
How we
create value
Strategic Report
Performance
in 2025
02
Chairman’s
statement
18
Risks and
uncertainties
36
How we create
value
08
CEO’s
review and KPIs
21
Sustainability
42
Purpose,
culture, market,
strategy and
business model
12
Financial
review
30
Going concern
and Viability
62
Financial Statements
Additional Information Governance
07
Howden Joinery Group Plc
Annual Report & Accounts 2025
Strategic Report
Strategic Report
06
Howden Joinery Group Plc
Annual Report & Accounts 2025
Strategic Report Page Title Strategic Report Page Title
We respond to external opportunities and mitigate threats
Our purpose
We are a business built on relationships. Our success comes
from the trust we build with our customers. When our customers
succeed, we succeed and our other stakeholders succeed.
How we create value
Business model Strategy
Trade-only. In-stock from local depots
at best local price. Entrepreneurial
depots supported by UK manufacturing
and efficient sourcing and distribution.
Reach more builders. Offer them the best
product, pricing, service and support.
Generate profits for reinvestment and
shareholderreturns.
Markets Risks
Competing at all price points.
Gaining market share.
Effective risk monitoring
and mitigation.
See page 12
See page 15
See page 14
See page 16
See page 36
Our purpose drives our business model
and shapes our strategic decisions
Culture & values Sustainability Governance
Worthwhile for
all concerned.
Focus on climate
resilience and Net Zero.
A clear governance
framework. Operating
with integrity.
Long-term value for our stakeholders
Long-term, sustainable growth and value for all stakeholders.
Worthwhile for all concerned.
See page 13 See page 42 See page 66
Financial Statements
Additional Information Governance
09
Howden Joinery Group Plc
Annual Report & Accounts 2025
08
Howden Joinery Group Plc
Annual Report & Accounts 2025
Strategic Report
Strategic Report
Culture is aligned
with purpose, values
and strategy
Sustainable behaviour
preserves our culture,
maintains focus on our
business model, mitigates
our risks and addresses the
needs of our stakeholders
Our governance
frameworkguides
alldecisions
and outcomes
Our business model and strategy generate
value for a range of stakeholders
Strategic Report Strategic ReportPage Title Page Title
Creating value for our trade customers
We have strong and trusted local relationships
with our trade customers, based on:
Trade service and
convenience
During the year we continued to revamp our depots to meet
our customers’ needs and provide the best trading environment.
Product
leadership
Trade value
• Local depot network
• Knowledgeable depot teams
and outstanding service
• In-stock model so builders can
get the products they need at
short notice
• Trade accounts
• The right product ranges
andstyles
• Trade quality and easy for
builders to fit
• Market-leading solid work
surface offering
• Premium paint to order
capability
• Best local pricing
• In-house manufacturing and
distribution, and a low-cost
depot operating model
• Value across entry, mid and
high price ranges
Our service offering
88%
of UK customers live
within 5 miles of a depot
99.9%
service level from primary to UK depots
See page 22
Creating value for our employees
Valuing our employees, supporting them and
rewarding them well for outstanding performance
Entrepreneurial
culture
We are committed to developing our people and supporting
apprenticeships for the new generation of employees and
tradespeople.
Career developmentExcellent rewards
• The strong entrepreneurial
culture in the business means
our teams are engaged,
committed and incentivised
to provide our customers with
outstanding service levels.
• As a growing company,
there are many opportunities
to develop and build great
careers.
• As well as a good salary,
plus local profit-sharing
and incentives, employees
receive excellent rewards and
recognition for outstanding
performance.
Our employee inclusion survey
74%
said Howdens is a
great place to work
74%
said Howdens is a place where everyone has the
opportunity and is encouraged to succeed at work
See page 55
Financial Statements
Additional Information Governance
11
Howden Joinery Group Plc
Annual Report & Accounts 2025
10
Howden Joinery Group Plc
Annual Report & Accounts 2025
Strategic Report
Strategic Report
Strategic Report Strategic ReportPage Title Page Title
Howdens was founded on the principle that
thebusiness should be worthwhile for all
concerned — customers, homeowners, tenants,
local communities, our suppliers, our investors,
our staff and their families.
This founding principle has
shaped our business model
and our strategic decisions
since 1995, and it continues to
be at the heart of what wedo.
Our purpose Our culture and values
Worthwhile for our trade customers
• Profitability, convenience, service, support.
• Great product range for them to offer to their customers.
• Outstanding service.
• Trusted personal relationships – we do what we say.
• Trade accounts and confidential discounts.
• Design, planning and marketing support.
Worthwhile for our staff
• A good salary, plus local profit-sharing and incentives,
excellent rewards and recognition for outstanding
performance.
• An entrepreneurial culture, with central support.
• A growing company with opportunities to develop and
progress. Structured career development programmes.
Worthwhile for our suppliers
• Strong and enduring relationships based on trust.
• Working together to develop new products and deliver
bestservice.
• Our scale provides good opportunities for suppliers
to build a profitable business by working with us.
Worthwhile for our other stakeholders
• Delivering consistent long-term value for shareholders
with a growing dividend and return of surplus cash through
share buybacks.
• Helping end-users at each stage of their buying decision.
• Important local employer in over 970 communities.
• Giving back to charities and local communities.
• Responsible purchasing and environmental policies.
Our focus on serving our trade customers is at the heart of
everything we do. We believe the best way to source and install
a kitchen is to work with your local tradesperson, and we are
clear that the purpose and future success of our business lies
in serving the trade market to the highest standards.
Our relationship with our trade customers has three key
facets, each supported by our entrepreneurial culture.
Product leadership
Product design and testing facilities ensure that we offer
the right product styles that are attractive to consumers,
designed to be trade quality and easy for builders to fit,
givingthem more time.
Trade value
Best local trade prices enabled by in-house manufacturing,
long-term key supplier agreements and a low-cost depot
operating model.
Trade service and convenience
Depots located where our customers need them; monthly
account facilities; product in-stock to get the job done –
including appliances, joinery, doors, flooring, hardware
and bedrooms. A free design service to help customers
and end-users choose and plan their kitchens. Digital tools
to help the busy builder.
We are a business built on relationships,
and our success comes from the trust
we build with our trade customers.
Customers
Environment
and communities
Shareholders
Pensioners
Staff
Suppliers
and landlords
Government and
local authorities
Financial Statements
Additional Information Governance
13
Howden Joinery Group Plc
Annual Report & Accounts 2025
12
Howden Joinery Group Plc
Annual Report & Accounts 2025
Strategic Report
Strategic Report
Strategic Report Strategic ReportPage Title Page Title
Trade specialists
26%
Contract specialists
9%
Independents
34%
Retail
31%
c.£6bn
c.£5bn
+
Kitchens Joinery
c.£11bn
2
Howdens
£2.3bn
Our market
The kitchen market
• 28 million households in the UK; 18 million owned and 10 million rented.
• UK kitchen and joinery market of c.£11bn
1
. We continue to grow market share.
• ‘Do It For Me’ and the trade market continue to be strong.
• Howdens sells to trade customers who work flexibly across a broad range of markets,
including owner-occupied homes, private rentals and social housing.
• Our Contracts division supports the increasing demands of the new build market.
Structural drivers
• The UK population could reach nearly 74 million by
2036. The UK population will increase by 6.6 million
people (9.9%) between 2021 and 2036 (ONS, 2024).
• Ageing UK housing stock will drive renovation
(ave. age of UK stock is 70 years – ONS, 2022).
• Increased end-user interest in sustainable products
(44% of households are switching off or moving to
more energy efficient appliances – NatWest, 2022).
• Entrepreneurial builders are well placed
to win kitchens and joinery work as part
of wider home refurbishment projects.
They are supported by Howdens’ in-stock,
trade-only business model.
Recent trends
• More than a quarter of working adults in Great Britain
(28%) were hybrid working in the Autumn of 2024
(ONS). This leads to greater wear and tear on kitchens
and appliances.
• Consumer mindset more focused on design and
use of kitchen space to maximise flexibility
(Howdens’ proprietary data).
• Ageing population – by 2066 there will be
a further 8.6 million projected UK residents aged
65 years and over, taking the total number in this
group to 20.4 million and making up 26% of the total
population (UK Govt, 2021). Increasingly this will
drive renovation activity as many choose to age in
their place of residence.
UK market by revenue
1
UK market revenue by vendor category
1
Large and attractive markets
with significant growth potential
1 Howdens’ estimates based on proprietary data.
2 Established kitchens
and joinery markets only
(excludes bedrooms)
Our strategy
Our medium-term strategic initiatives help us achieve our purpose by
increasing market share and profits while delivering for our customers.
Our purpose
To help our trade customers achieve exceptional results
for their customers and to profit from this.
Evolving our depot model
• to provide the best working and trading
environment and use space efficiently.
See page 25
Improving our product range
andsupply management
• to help customers’ buying decisions,
improve service and enhance productivity.
See page 26
Developing our digital platforms
• to raise brand awareness and support our
business model.
See page 27
Expanding our international
operations
• to expand our presence in attractive kitchen
and joinery markets outside the UK.
See page 27
Underpinned by our long-term objectives
to drive sustainable future growth
Reach more
builders
Grow market share.
Increase trade convenience.
Operational
excellence
Increase customer service, efficiency,
trade value and profitability.
Product
innovation
The right amount of the best product,
at the best price.
Prudent financial
management
Giving us the tools to do the job.
Measured by:
KPIs
•
Sales growth
•
Profit before tax
•
Cash
•
Depot openings
•
Health & Safety
•
FSC® or PEFC
certified raw
materials
•
Waste recycling
See page 28
Financial Statements
Additional Information Governance
15
Howden Joinery Group Plc
Annual Report & Accounts 2025
14
Howden Joinery Group Plc
Annual Report & Accounts 2025
Strategic Report
Strategic Report
Strategic Report Strategic ReportPage Title Page Title
Our resilient business model –
built for the Trade
What we do
The value we create
1 2
Depots designed for our trade customers
3 4
StaffCustomers
1 2 3 4 5
Suppliers Investors
Communities
and environment
Consumers/
homemakers
The UK’s leading specialist kitchen supplier,
selling only through trade customers.
• Employment opportunities
and a good neighbour in over
970 communities.
• Supporting local and
nationalcharities.
• Responsible ESG practices
andpolicies.
• See our Sustainability report
onpage 42.
• Long-term value creation,
generating cash for further
profitable investment in the
business and to support a
growing dividend.
• Surplus cash after investment
and dividends is returned
toshareholders through
sharebuybacks.
• Our expert teams make and source
attractive products that are trade
quality and easy to fit.
• We design and manufacture all of
our own cabinets, as well as some
cabinet frontals, worktops and
skirting boards.
• We’re agile and we keep the make vs.
buy decision under review. We make
what it makes sense for us to make
in our UK factories, and we buy other
product in from our suppliers.
• We buy in thousands of different
products from hundreds of trusted
suppliers around the world, including
appliances, joinery, flooring and
hardware. We offer everything
necessary tocomplete any kitchen.
• Our in-house distribution
operation delivers from
our factories and central
warehouses to our network
of over 950 depots.
• No two deliveries are alike,
andeachone must be correct,
complete and on time. We can
guarantee this because we
controlour own distribution.
Distribution
• We have over 2,000 specialist
kitchen designers who support
the builder by visiting the
end-user’s home, or work with
them remotely using our free
virtual design service, and help
them choose, plan and design
their dream kitchens.
• A growing company with
opportunities for training,
development and
career progression.
• A safe working environment,
good salary, pension and
benefits,with local profit-
sharingand incentives.
• Strong and enduring
relationships based on trust.
• Cooperative engagement
on new products and the
scale necessary to support
suppliers’ businesses and
their investment plans.
• Decentralised depot business
model. Entrepreneurial depot
managers leading highly motivated
and incentivised depot teams.
Trusted relationships with their
local builders.
• A typical Howdens depot is in an
edge-of-town location – more
convenient for trade customers,
and cheaper to rent. 88%
of our UK customers live within
5 miles of a Howdens depot.
• Our in-stock model means that
builders can get the products
theyneed at short notice, even
when plans change part way
through a job.
• We offer the builder quality
products, excellent levels of service
and trade accounts that allow them
up to eight weeks to pay. We focus
on helping our customers succeed.
When they make money, we make
money.
• Builders save time and money
with Howdens. Trade quality,
full productrange forthe complete
kitchen, available from stock
atcompetitive, confidential prices.
• Trusted personal relationships
providing outstanding service.
From free design and planning to
delivery andaftersales support.
• Trade accounts allow the builder to
finish their project and get paid by
their customer before they need to
pay us.
• Online account management, click
and collect and anytime ordering
tools help the busy builder.
Product manufacturing and sourcing
Financial Statements
Additional Information Governance
17
Howden Joinery Group Plc
Annual Report & Accounts 2025
16
Howden Joinery Group Plc
Annual Report & Accounts 2025
Strategic Report
Strategic Report
Strategic Report Strategic ReportPage Title Page Title
Chairman’s statement
Another year of disciplined
execution and robust
financial delivery
Strategic Report
Peter Ventress
Chairman
Our significant progress this year
also puts firmly into focus the
powerful combination of Howdens’
differentiated trade-only, in-stock
business model alongside the
commitment and entrepreneurial
drive of our depot teams.
Increased sales and profitability
in the year
During 2025, Howdens continued to operate against a
challenging geopolitical and macro economic backdrop.
Yet, despite these headwinds, we increased sales, market
share and profitability which was an outstanding performance
and a credit to the considerable talents and commitment of
our CEO Andrew Livingston and his Executive team.
Our significant progress this year also puts firmly into focus
the powerful combination of Howdens’ differentiated trade-
only, in-stock business model alongside the commitment
and entrepreneurial drive of our depot teams. Their focus on
outstanding service, product expertise and supporting our
local trade customers remains central to our success. On
behalf of the Board, I would like to extend my sincere thanks
to our 12,000 colleagues whose resilience, expertise and
dedication underpin everything we do.
Financial performance
2025 was another year of disciplined execution and robust
financial delivery. Group revenue grew by 4.1% to £2,418.0m,
with UK revenue up 3.8%, reflecting our strong competitive
position even in a subdued market environment. Gross margin
improved by 110bps to 62.7%, supported by disciplined pricing
management, increased volumes, and ongoing sourcing and
manufacturing efficiencies. Costs were well controlled and
operating profit increased 4.7% to £355.3m, with profit before
tax up 5.1% to £344.9m, ahead of the rate of sales growth.
Basic earnings per share grew 7.9% to 49.2p, reflecting the
profit growth for the year, a lower effective tax rate and the
benefit of the share buyback completed in the year.
Our strong cash generation remains a hallmark of Howdens’
business model. We ended the year with £344.5m of cash,
maintaining a robust and ungeared balance sheet that
continues to support investment through the cycle.
During the year, we invested in further depot reformats and
openings, key manufacturing upgrades, digital improvements,
and the continued development of our international
businesses. We also returned cash to shareholders through
dividends and, reflecting our strong financial position,
we also completed a £100m share buyback programme.
Strategic initiatives
The kitchen and joinery markets we operate in remain large,
fragmented, and well suited to our trade only model. In 2025,
we continued to make significant progress in executing our
strategic priorities:
• Depot expansion and optimisation: We opened 23 new UK
depots, completed 60 depot reformats, and added further
depots internationally, ending the year with 891 UK depots,
63 in France and Belgium, and 16 in Ireland.
• Product innovation: We introduced 24 new kitchen
ranges, further enhanced our solid worksurface offer,
and continued to strengthen our joinery ranges.
• Manufacturing and supply chain: We commenced a major
multi year upgrade of our rigid cabinet and panel lines
at Runcorn, an important investment that will increase
capacity, improve flexibility and support long term margin
progression.
• Digital capabilities: We launched our new pricing and
margin (PAM) tool across the UK depot network, with strong
early indications of improved margin performance on
everyday SKUs.
• International development: Our France and Ireland
businesses made good progress, with international
revenue up 13.4%. In France we focused on improving same
depot sales and team capability, while Ireland continues to
establish itself as a strong competitor in our categories.
These initiatives position us well to deliver sustainable,
profitable growth as market conditions normalise over time.
You can read more about our progress on our strategic
initiatives in Andrew Livingston’s CEO review on pages 21 to 27.
Further progress in sustainability
Howdens continued to strengthen its leadership in
responsible business in 2025, progressing its sustainability
agenda and our externally validated Net Zero plan. The Group
achieved its 25% Scope 3 emissions reduction target ahead
of schedule and expanded value chain engagement, with
more than 100 key suppliers now providing verified data and
decarbonisation plans. It also completed a Double Materiality
Assessment and used the deferral of the EU Corporate
Sustainability Reporting Directive requirements to further
enhance data quality and alignment of our ESG disclosures.
Operationally, all sites maintained zero to landfill status,
supported by improved waste management, increased on
site renewable generation, and ongoing fleet decarbonisation
initiatives. We also advanced our product sustainability
programme through stronger lifecycle design and higher
recycled material use. The Group also continued to drive
a vibrant people strategy recognising that as a service
business the importance of well-trained, highly motivated
staff. We continued to embed inclusion and wellbeing,
expanded apprenticeships and early career pathways,
and strengthened manager capability to support long term
talent development.
You can read more about our progress this year starting
at page 42.
Governance
Good governance remains critical to sustaining trust and
accountability across our diverse stakeholder base. During
2025, we continued to strengthen the Board’s experience and
oversight capabilities. The year saw a planned CFO transition,
with Jackie Callaway succeeding Paul Hayes following a
comprehensive selection process. Jackie brings significant
financial, operational and leadership experience to the Board.
We continue to ensure that our governance structures
and Board composition remain appropriate to support the
Group’s long term strategy and to provide robust challenge
to the Executive Committee. We assess principal risks across
operational, reputational, compliance, financial and strategic
categories over the short, medium and long term, and these
with further detail are set out in the Strategic Report on
pages 36 to 41. In 2025, cyber threats have again evolved in
sophistication with several high profile incidents that included
the use of emerging technologies and advanced social
engineering techniques—we intensified colleague training and
maintained strong technical controls, validated by external
specialists, alongside tested disaster recovery and business
continuity plans.
We remain focused on ensuring Howdens has the right
governance structures and Board composition to support our
long term strategy and to provide effective challenge to the
Executive Committee.
For more information please see pages 66 to 139.
Financial Statements
Additional Information Governance
19
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Annual Report & Accounts 2025
Strategic Report
18
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Annual Report & Accounts 2025
Strategic Report Strategic ReportPage Title Page Title
Capital allocation and returns
toshareholders
Our capital allocation policy is unchanged. We focus on
achieving sustainable profit growth by investing in organic
expansion and broadening our capabilities in growth
adjacencies. We aim to provide shareholders with an
attractive ongoing income stream and an ordinary dividend
that grows in line with the long-term prospects of the business.
After allowing for these uses of cash, Howdens remains
committed to returning any surplus capital to shareholders.
Within its definition of surplus capital, the Board’s objective
is for the Group to be able to operate through the annual
working capital cycle with a strong balance sheet, noting that
there is seasonality in working capital balances through the
year, particularly in advance of our peak trading period in the
second half. We also take into account that the Group has a
significant property lease exposure for the depot network,
and a large defined benefit pension scheme. Our policy
remains that when year-end cash is in excess of £250m we
expect to return surplus cash to shareholders. This provides
sufficient headroom to support organic growth, our seasonal
working capital requirements, and ongoing investments in our
strategic initiatives, while maintaining a strong balance sheet.
In July 2025 the Board declared an interim dividend of 5.0p per
ordinary share (2024: 4.9p per ordinary share), an increase
of 2%. The Board is recommending a final dividend for 2025
of 16.9p per ordinary share (2024: 16.3p per ordinary share),
an increase of 3.7%. This brings the total dividend to 21.9p
per ordinary share (2024: 21.2p per ordinary share), and
represents a year-on-year increase of 3.3%. If approved by
shareholders at the AGM in May the final dividend will be
paid on 22 May 2026 to shareholders on the register on 10
April 2026. Reflecting the Group’s strong financial position,
the Board is announcing today a new £100m share buyback
programme which will be completed over the next 12 months.
Looking ahead
As we look ahead, we expect the overall size of the UK kitchen
market to remain broadly consistent with last year’s levels,
providing a stable backdrop for continued disciplined
execution. As we focus on delivering day to day value for
our trade customers, we will continue to strike the right
balance between price and volume while maintaining firm
cost control. We remain confident that our differentiated
model is well positioned to capture the opportunities within
our markets, and we enter the year prepared and determined
to outperform our competitors once again. Although it is still
early in the new financial year, our performance so far is in
line with expectations, and we are on track to meet market
expectations for 2026
1
.
Peter Ventress
Chairman
25 February 2026
1 On 26 February 2026 analysts’ consensus forecasts for FY2026 profit
before tax, which was published on the Company’s corporate website,
was an average of £354m, with a range of £345m to £383m.
Chief Executive
Officer’s review
Further market share
gains in 2025, with profit
growth ahead of sales
Andrew Livingston
Chief Executive Officer
The business delivered strong
operating cashflow and we
maintained a robust balance
sheet. This gives us the flexibility
to continue to invest in our growth
plans for the business and provide
shareholders with an increased
dividend and a £100m share
buyback programme.
Q&A with Andrew Livingston,
Chief Executive Officer
The business advanced on all fronts in the
year. We gained market share and delivered
a strong operational performance with
profit growth ahead of sales. We continued
to invest in our strategic initiatives, helping
our trade customers win more business
while making our operations more efficient
and productive.
Q
How would you summarise Howdens’
performance in 2025?
A
The business advanced on all fronts in, as we
anticipated, a challenging UK marketplace. The results
were at the top-end of our expectations, and we have
made an encouraging start to 2026. Group sales increased by
4% with the business continuing to perform well in the final two
periods of the year. In the UK, we gained kitchen market share
which helped us mitigate a small single digit decline in the
overall size of the market.
Our kitchen volumes rose, which helped us consolidate the
significant market share gains we have made over the last
five years or so, with our longest established depots making
a substantial contribution to the share gains we have made
over this period. We delivered an industry leading gross
margin with gross profit up on last year, as we balanced
recovery of cost rises with our commitment to provide
competitive pricing for our customers.
Reported profit was 5% ahead of last year, increasing at
a higher rate than sales. The business delivered strong
operating cashflow and we maintained a robust balance
sheet. This gives us the flexibility to continue to invest in our
growth plans for the business and provide shareholders with
an increased total dividend for the year. For 2026, we have
also announced a new £100m share buyback programme.
Chairman’s statement continued
Page
Our Sustainability report 42
My introduction to our Governance report 68
Our Board of Directors 70
Further reading
Financial Statements
Additional Information Governance
21
Howden Joinery Group Plc
Annual Report & Accounts 2025
20
Howden Joinery Group Plc
Annual Report & Accounts 2025
Strategic Report
Strategic Report
Strategic Report Strategic ReportPage Title Page Title
Chief Executive Officer’s review continued
Q
Markets have been challenging.
What are your assumptions for the UK
kitchen market in 2026?
A
For 2026, our planning assumption is that the overall
size of the UK kitchen market will be level year on year,
following several of decline. We are well prepared for
the challenges and opportunities ahead, and our customers,
who are typically self-employed, are highly adept at winning
business in all market conditions. Delivered by our highly
entrepreneurial and well incentivised depot teams, I believe
that our service orientated, trade only, in-stock, local model
is the right one to deliver sustainable market share gains.
Our model is hard to replicate and difficult to compete with,
and we have initiatives in place to make it more so. In 2025,
we believe the value of our principal UK markets totalled
some £11 billion, versus our UK sales of £2.3 billion. So we
have lots of growth opportunities to go after.
Q
How are your strategic initiatives
supporting long-term development?
Looking at the UK depot network how is
your depot rollout and refurbishment
programme progressing?
A
High service levels, local proximity and immediate
availability remain very important to our customers
and we continue to see profitable opportunities to
open depots, with line of sight to around 1,000 in the UK.
In 2025, we opened 23 UK depots, including 18 in the final
two periods.
We expect to open around 25 more in 2026. The updated
depot format strengthens productivity, space utilisation
and the working environment. Last year we completed 60
revamps including 9 relocations, taking the total to 401.
This year we plan to convert another 45 depots and by
year-end will have around 77% of UK depots trading in the
updated format. So we are making good progress.
Q
How is product innovation
contributing to your performance?
And what is included in your kitchen
ranges for 2026?
A
Investment in product, service and availability helps
us develop long-term customer relationships and build
competitive advantage. Sales of new product
introduced in 2025 and the prior two years represented
around 29% of UK product sales.
Q
How are solid surface worktops
contributing to growth?
A
Solid surface worktops present significant
opportunities, supported by our in-house
manufacturing capacity — among the largest in the
UK — enabling rapid template-to-fit times. Our offering in this
category is underpinned by our in-house manufacturing
capacity, which is amongst the largest in the UK, helping us
offer rapid template to fit times.
In recent years we have increased the number of decors we
offer for this service and for this year we have introduced
clearer and simpler ranging and more delineated pricing to
demonstrate the value we offer at all price points. Ahead of
peak trading this year, our total offering will comprise a similar
number of options to last year with increased space available
to display worktops in more of our depots.
Q
Of course, Howdens also importantly
supplies trade customers with joinery
products for their everyday needs.
How are these categories developing?
A
Yes, joinery is important to our trade customers and
presents a significant long-term growth opportunity.
For example, take appliances; our Lamona brand is one
of the leading integrated appliance brands in the UK, and for
this year we have completed a major refresh of the brand’s
offering. We have modified the design and lowered the prices
of a suite of high-volume products, without compromising
these products functionality. Elsewhere we have updated the
design and specification of a number of higher priced
products including washing machines, fridge freezers
and cookers.
Launched in 2023, our own label flooring brand, ‘Oake and
Gray’, now represents a substantial proportion of category
sales. Having introduced water resistant laminates last
year, new product for this year includes sustainably sourced
engineered wood flooring with mass market leading standing
water resistance. In ironmongery, we launched our own label
brand ‘Fuller and Forge’ last year. It features door furniture
in a variety of designs, finishes and styles and significantly
improves our offering in a category where we are under-
represented. Fuller & Forge product has landed well and for
this year we have new finishes and designs and will be adding
new sub – categories.
As well as being substantial businesses, doors and joinery are
key footfall building products for us. Last year we added more
colour and bolder styles at all price points to our door line-up
and new product this year includes a new premium range of
Howden branded solid engineered doors. In joinery we will
continue to develop the sub-category extensions into wall
panelling, stair parts and loft spaces initiated in 2025.
Value for money is a consistent feature of purchasing
decisions and we are committed to offering market-leading,
easy-to-fit, fairly priced product. With household budget
pressures, price featured prominently in 2025 and is expected
to do so again this year.
Our 2026 NPI brings more colours, styles and finishes to
more budgets, especially at entry and mid-level. We are
also innovating in long-established categories and adding
colours and styles to fitted bedrooms. Efficient portfolio
management is crucial. Our rigid cabinet platform is shared
across all families, enabling cost effective range expansion.
Enhancements to stock management and replenishment,
including the XDC network, support best availability at lower
cost. More efficient testing enables us to bring more proven
new styles to market more quickly.
Excluding paint to order, we have 24 new kitchens confirmed
for 2026, with the full offer organised into 11 families. We have
15 new kitchens for these families in 2026. At entry level: five
new kitchens including Greenwich and Whitney in Porcelain
and Allendale in Reed Green. At mid-level we have six new
colours added to Frome and new emerging tones added to
Clerkenwell and Halesworth.
Q
You have expanded into higher-
priced kitchen ranges more recently.
Why are you doing this and how are
you developing the range here?
A
Entry and mid-level kitchens remain the core source of
our rigid cabinet volumes and kitchen invoice value.
But yes, you are right, we have upscaled our higher
priced kitchen portfolio in recent years utilising Howden’s
scale, supply and manufacturing capabilities to offer the
bespoke look most associated with the high street
independents at competitive prices. Our offering now
comprises four families, including three shaker style
timberfamilies which are collectively marketed as
‘ClassicTimber Kitchens’.
In 2025 our Classic Timber Kitchen families performed
particularly well, with the paint to order options growing in
popularity. The number of our Chilcomb and Elmbridge kitchens
sold in the paint to order colours, which are priced at a premium
to the stock colours, increased significantly in 2025.
This year we are refreshing our paint to order palette with
four new colours with two of the leading paint to colours,
becoming Chilcomb and Elmbridge stocked colours.
Last year we extended the reach of our timber offering with
the launch of a new family, Ilfracombe, an in-frame timber
kitchen of classic design. Positioned above our Chilcomb and
Elmbridge families, Ilfracombe is exclusively available in 24
paint to order colours.
Q
Fitted bedrooms were introduced
more recently as an incremental
opportunity to supply trade customers.
How is that going?
A
Yes, we think they represent a growing source of
incremental sales and profit, and help us foster
customer relationships. Installing fitted bedrooms
suits the skills of customers who fit kitchens and last year a
substantial proportion of total bedroom sales represented
purchases either by new customers or by customers who had
bought from us relatively infrequently.
We develop our bedroom ranges in-house, utilising our
existing design and supply infrastructure and they have a
high cabinetry content, which matches our manufacturing
capabilities. Our 2025 offering comprised bedrooms in five
leading family designs drawn from our kitchen portfolio,
including a new family Clerkenwell, launched during the year.
This year, we will continue to target entry and mid-price points,
with five new bedrooms, including new colours for Bridgemere
and Halesworth.
Q
Given you are a depot-led business
predominantly, why is digital important
to the business and what areas are you
looking to develop?
A
We use digital to reinforce our model of strong local
relationships between depots and their customers by
raising brand awareness, supporting the business
model with new services and ways to trade with us, and to
deliver productivity benefits and more leads for our depot
teams and our customers.
Usage of our on-line account facilities, which provide
efficiencies and benefits for customers and depots alike,
has continued to increase. New registrations totalled some
59,000 and around 61% of customers had an on-line account
at the year-end. Total users viewing our trade platform
increased by 45%, with around 80% of users regularly looking
at their individual and confidential prices. Customers with an
on-line account have on average continued to trade with us
more frequently and spent more than non-users.
We generated high levels of engagement with our web
platform and grew our social media presence, which also
stimulates interest in viewing our products and services
on-line and site visits totalled some 24 million in the year.
Amongst kitchen specialists, we continued to have the
highest number of fitted kitchen site visits in the UK, and the
time spent viewing pages and the number of sessions were
at consistently high levels. Across the leading social media
channels, our follower base at around 721,000 was up 18%,
with around 6.8 million engagements a month.
Financial Statements
Additional Information Governance
23
Howden Joinery Group Plc
Annual Report & Accounts 2025
22
Howden Joinery Group Plc
Annual Report & Accounts 2025
Strategic Report
Strategic Report
Strategic Report Strategic ReportPage Title Page Title
Evolve our depot model
Improve our range and supply management
Develop our digital capabilities and services
Expand our international operations
1
2
3
4
Digital can also make us a more efficient business. For
example usage of our upgraded ‘Click and Collect’ service for
‘everyday’ products increased this year and the new depot
account management tool introduced last year is helping
depots manage their customer relationships more efficiently
and productively.
Q
Turning to International, it looks like
you have generated strong growth this
year. What are your plans for 2026 and
beyond?
A
In 2025, year on year sales of our operations based
in France increased at a higher rate than the previous
two years. In tough market conditions, the business
responded positively to the measures taken to improve existing
depot sales performance. We now have in place a highly
experienced leadership team adept at depot management and
have invested in enhanced offerings of ‘footfall promoting’
products, alongside other initiatives. In 2026, we will continue
to build out our depot teams’ capabilities, particularly account
management, and actively manage our depot estate, including
by closures and relocations where necessary, as we look to
build on the progress made.
We are also trialling a more compact version of our format,
initially at a new test-depot in Reims to the west of Paris.
At around 500 square metres, this version is under half the
average size of the current depots has lower rental costs and
the layout incorporates the latest UK format innovations.
We expect to maintain the aggregate number of depots
trading at around the current number as we actively manage
our depot estate to optimise its performance.
We opened for business in the Republic of Ireland in 2022
using a similar depot location strategy to that in France, with
the local team supported by our UK infrastructure and our
digital platform. By the end of 2025 we had 16 depots trading,
including nine clustered around Dublin and three serving
Cork. This year, we expect to open around five more depots
which would increase the number trading to 21 by the
year-end.
Q
So finally Andrew, how do you see the
coming year?
A
We are well planned, including on our strategic
initiatives. These are aimed at increasing our market
share profitably, as day to day we deliver value to
customers across all price points and product categories. We
will have 24 new Kitchens in-stock well ahead of peak Autumn
trading, plus a very competitively priced paint to order kitchen
offering and overall our line-up in all product categories is the
best we have had in my time at Howdens.
We will continue to improve service and availability and
increase the range of services and functionality we offer
on-line to the benefit of our depot teams, customers and end-
users alike. During 2026 we plan to open around 25 depots in
the UK and refurbish around another 45 existing depots to the
updated format. In total, we expect to end the year with around
85 depots trading in the Republic of Ireland, France & Belgium.
While it is early in the financial year, we are on track to meet
current market
1
expectations for 2026. We are planning for
the size of the kitchen market to be level year on year, following
several years of decline in what remains a competitive market
place. We aim to retain a profitable balance between price
and volume, as we continue to maintain competitive pricing
whilst aligning operating costs and working with suppliers to
keep product and input costs controlled.
We are confident that our business model is the right one to
address the opportunities in our markets. We are well placed
to outperform our competitors in 2026, as we continue to
invest in our strategic initiatives so we are looking forward
with confidence.
1 Current analysts’ consensus forecasts for FY2026 for profit before tax,
which is published on the Company’s corporate website, is an average
of £354m, with a range of £345m to £383m.
Chief Executive Officer’s review continued
We have made further progress on our medium-term strategic initiatives,
and we expect to deliver profitable growth and market share gains over
the medium term. The four strategic initiatives are:
Our strategic initiatives
1
Evolve our depot model – we want to improve
our depot network over time to ensure we
use space more efficiently, and to provide
the best environment for our customers to
do business in.
High service levels, including local proximity and immediate
availability, are very important to our customers and we have
continued to extend our depot footprint to support growth.
We have been rolling out updated depot format across our
estate. It provides an attractive space for us to do business
with our Trade customers, and a place for them to bring their
customers to see our product range and to work with our
kitchen designers.
It also has an improved warehouse space that makes space
utilisation and productivity gains in a cost-effective way by
using vertical racking.
The reformats are budgeted to pay back costs in less
than four years. Depot P&Ls are charged a reformat
cost which ensures depot teams are motivated todeliver
incremental sales.
The updated depot format
Updated front area creates the best environment for
ourcustomersto do business in. Better warehouse racking
deliversmore stock, in less space, with reduced picking times.
Financial Statements
Additional Information Governance
25
Howden Joinery Group Plc
Annual Report & Accounts 2025
24
Howden Joinery Group Plc
Annual Report & Accounts 2025
Strategic Report
Strategic Report
Strategic Report Strategic ReportPage Title Page Title