Howden Joinery says current trading strong after solid first half

24th Jul 2014 10:47

- Group revenue up 11.4%- UK depots up 11.6% - "Improved market conditions"- "Well placed" to hit FY expectationsFirst-half results from Howden Joinery received a warm welcome from the market on Thursday as the kitchen and joinery products group delivered a decent jump in interim profits and reported a strong start to the second half.Howdens-branded UK depots generated revenue of £428.2m in the first half, up 11.6%, helped by the opening of 17 new depots, taking the total to 576. The company said that results were boosted by price increases that were implemented early in the year, more customer accounts, along with "improved market conditions".Including its small French business, which grew 5% in constant currency terms, group revenue rose to £435.4m, up 11.4%.Meanwhile, the gross profit margin improved to 63.2% from 61.5% last year, helping pre-tax profit rise 37.5% to £57.6m.The group hiked its interim dividend to 1.9p per share, nearly double the 1.0p per share paid a year earlier, in line with its guidance in February to pay an interim dividend equal to one third of the previous year's full-year payout (5.5p per share in 2013)."Howdens has performed well, with sales and profit increasing significantly, as the improved trading conditions seen since last summer continued," said Chief Executive Matthew Ingle. "Feedback from our depots is positive and we've seen a good start to the second half of the year," he said.The first four weeks of the second half have seen UK depot revenues rise by 14% year-on-year. Despite risks to margins from exchange rates and cost inflation, the company said it is "well placed to achieve its expectations for the full year".The stock was up 4.4% at 325.4p by 10:34.BC