25th Jul 2019 09:38
(Alliance News) - Kitchens supplier Howden Joinery Group PLC said Thursday that group revenue and pretax profit rose in the first half of 2019 but the company remains cautious because of Brexit uncertainty.
The group's revenue for the 24-week period until June 15 was GBP652.6 million, up 5.4% year-on-year from GBP619.4 million.
Pretax profit rose 14% to GBP78.1 million from GBP68.8 million. The company attributed this to sales growth and improved gross profit margin to 61.9% from 61.3%, partially offset by continued investments.
Howden's capital expenditure rose to GBP24.1 million from GBP17.1 million, largely due to it launching new depots.
It anticipates capital expenditure for the full year to be between GBP70.0 million and GBP80.0 million. In 2018, capital expenditure totalled GBP44.3 million.
The group has opened 15 new depots during the half and expects to open 40 depots in the UK in the whole of 2019.
The company said: "We remain cautious given economic uncertainties, particularly the impact that Brexit might have. In preparation for a 'no-deal' Brexit, a number of measures have been taken. Our stocking policy for at-risk items has been adjusted to secure continuity of supply during the transition. As a result, around GBP12 million additional inventory is being held and key suppliers are also making plans to ensure supply."
The company will pay a dividend for the period of 3.90 pence per share, reflecting its policy to pay an interim equal to a third of the last financial year's full dividend.
Shares in Howden were up 5.3% at 533.40 pence each in London on Thursday morning.
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