Kitchen furniture specialist chain Howden Joinery Group has reported a growth in revenue in its latest trading update and is ‘on track’ to meet expectations.
According to its second half of the year performance to 29 October 2016, total sales rose by 4.1% despite facing ‘toughening comparators that have been seen since June’ and ‘softer trading conditions seen in recent months’.
As a result, in the first 11 periods (44 weeks) of 2016 total revenue was up 6.3%, rising 4% on a same depot basis, with gross margin performance in line with expectations.
Howdens stated: “The Board is pleased to report that the Group has seen a solid performance in the second half of the year to date, including during the important October trading period (period 11), and is on track to meet expectations for the full year (profit before tax for 2016 is believed to be £218m to £244m, the mean being £229m).
“However, it should be noted that the two remaining trading periods together typically account for over 10% of annual revenues.”
Since its 2016 Half Yearly Report in July, Howdens has opened 10 new depots, resulting in 20 new depots in the UK so far this year and bringing the total to 639.
Howdens also confirmed it has completed its share buyback programmes announced in February 2015 and 2016 with the acquisition of a further 6.2m shares since July, bringing the total to 17.5m at a consideration of £80m.
The Group will release its 2016 Preliminary Results on 23 February 2017.