23rd Jul 2015 06:48
LONDON (Alliance News) - Kitchens and joinery products manufacturer Howden Joinery Group PLC on Thursday hiked its interim dividend on the back of a rise in pretax profit and revenue in the first half of 2015.
FTSE 250-listed Howden said its pretax profit in the half to the end of June was up to GBP59.2 million from GBP57.2 million, with growth held back somewhat by higher selling and disribution costs and administrative expenses, as the group continues to invest to expand its operations.
Gross profit, stripping out everything but its cost of sales, rose to GBP307.3 million from GBP275.2 million, as revenue rose to GBP482.6 million from GBP435.4 million, boosted by an 11% rise in UK depot revenue to GBP475.8 million in total, with an 8.6% rise on a like-for-like basis.
The rise in profit and strong underlying trading prompted the group to hike its interim dividend to 2.8 pence per share, up from 1.9 pence a year earlier.
Howden added the second half has started well, with UK depot revenue up 13% in the first four weeks of the second half, leaving it well placed to meet its expectations for the full year.
"Howdens has performed well, with sales increasing significantly in the first half. Cash generation remains strong, feedback from our depots is positive and we've seen a good start to the second half of the year," said Chief Executive Matthew Ingle.
By Sam Unsted; [email protected]; @SamUAtAlliance
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