21st Jul 2016 06:54
LONDON (Alliance News) - Howden Joinery Group PLC on Thursday reported a surge in half-year profit thanks to revenue growth and margin improvements, prompting it to hike its interim dividend.
The mid-cap kitchens and joinery products supplier said pretax profit in the 24 weeks to June 11 was GBP74.8 million, up from GBP59.2 million a year before. Revenue grew to GBP528.9 million from GBP482.6 million, helped by a 9.1% rise in UK depot revenue, which grew 6.7% on a like-for-like basis.
Gross margins improved to 64.5% from 63.7% a year before, reflecting a price increase implemented by the company.
The group said it will pay a 3.3 pence interim dividend, up from 2.8p a year prior.
Howden said it has continued to invest in the business and has opened 10 new depots in 2016 to date. UK depot revenue has grown 5.2% in the weeks following the outcome of the UK's EU referendum.
Despite creating uncertainty on the outlook, the referendum result has yet to impact demand so far, Howden said.
"With the outcome of the referendum last month, there is clearly a heightened degree of uncertainty as to how demand in the rest of the year will pan out. At this stage, we are continuing with our plans. That said, we remain watchful and will quickly take whatever steps are appropriate to the market conditions as we find them," said Chief Executive Matthew Ingle.
By Sam Unsted; [email protected]; @SamUAtAlliance
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