23rd Nov 2006 07:00
Galiform PLC23 November 2006 23 November 2006 Galiform Plc TRADING STATEMENT FOR 44 WEEKS (11 PERIODS) UNTIL 28 OCTOBER 2006 Galiform Plc, the owner of Howden Joinery (Howdens), issues the followingtrading statement for the 44 weeks to 28 October 2006. This includes theimportant October period (period 11), which is Howdens' busiest time of year. Itexcludes detailed commentary on the MFI retail business, which was sold on 18October 2006 and will be treated as a 'discontinued operation' in the resultsfor 2006. Overview Overall, the Group's performance has followed the pattern seen in the first halfof the year. At this stage, we expect profit before tax and exceptional itemsfrom continuing operations to be in line with market expectations for 2006. Thepreliminary results for the 53 weeks ended 30 December 2006 will be released on6 March 2007. Howden Joinery Business conditions encountered by Howdens are unchanged from the first half ofthe year. For the year to date, the performance of mature depots, which have typicallybeen operating for 6 years or more, has continued to move forward and we haveseen the benefit of the maturing profile of sales from newer depots and newdepot openings. As a result, year to date sales have grown by 8.6%, 5.2% on asame depot basis. The gross margin percentage is in line with that seen in thefirst half of the year. Underlying performance in the second half of the year has been similar to thefirst half. Since the end of the first half of the year, sales have increased by11.7%, 8.0% on a same depot basis, compared with the same period last year (seenote 1). As of today, 32 new depots have been opened in 2006 and it is anticipated that,as expected, around 40 will have been opened by the end of the year. Supply Demand from Howdens and MFI Retail has remained in line with that seen in thefirst half of the year. The benefits expected from the move to greater externalsourcing of products and the closure of the Scunthorpe and Stockton factories inMay will be reflected in the results of Supply for the second half of the year. Note 1: The year to date increase in sales is less than the increase since the end of the first half of the year because of the high level of sales seen in period 6 in 2005, when Howdens undertook a one-off promotion. Excluding this period, the year to date increase in sales is similar to that seen since the end of the first half of the year. Enquiries Investors Gary Rawlinson Head of Investor Relations 0044 (0)20 7535 1127 Galiform Plc Media Fiona Laffan Brunswick 0044 (0)20 7404 5959Anna Jones This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Howden Joinery