19th May 2005 07:00
MFI Furniture Group PLC19 May 2005 19 May 2005 MFI Furniture Group Plc Trading Statement MFI Furniture Group Plc issues the following comment on trading ahead of itsAnnual General Meeting today. Total sales for the Group for the 20 week period to 14 May 2005 were ahead oflast year by 4% (2% on a same store basis) in a more uncertain tradingenvironment. Total net orders were ahead of last year by 2% (1% down on a samestore basis). Howden Joinery Howden Joinery total sales were up 7% on the same period in 2004 and same storegrowth was up 4%. Management focus in the early part of the year on marginimprovement in mature depots has resulted in gross margins being ahead of lastyear. Actions are now in hand to increase sales growth in mature depots for theremainder of 2005. The planned opening of 40 new depots and 30 extensions are ontrack. UK Retail As announced in March, the earlier timing of Easter this year resulted in theWinter Sale in 2005 concluding two weeks earlier than the Winter Sale in 2004.Net orders in the 12 weeks to 19 March 2005 were £313m (including a 10 weekWinter Sale) compared to £340m in 2004 (comprising a 12 week Winter Sale). Netorders in the next eight weeks to 14 May 2005 were £122m compared to £102m in2004 and include an Easter Sale of equivalent length in each year. The increasereflects a better performance during the Easter Sale, which benefited from amore effective promotional stance relative to last year, and a similar level ofnet orders since. Cumulatively, total net orders for the first 20 weeks were 2% below last yearand total sales were 1% above 2004. On a same store basis, orders were 4% lowerthan last year for the first 20 weeks and sales were 1% lower than last year. Since the March update, there has been some improvement in the UK Retail grossmargin relative to management expectations at that time. However, consistentwith the position at the March trading update, there has been a double-digitgrowth in volumes and a corresponding increase in logistics costs. The supply chain and system performance is stable with both volume and value ofdeliveries ahead of last year. The system issues experienced in 2004 haveresulted in £5m of operating exceptional costs being incurred in 2005. Hygena Cuisines Hygena Cuisines, our French retail business, continues to record a strongperformance with total orders up 11% and same store orders in local currency up7% on the same period last year. MFI's interim results for the 24 weeks to 11 June will be announced on 21 July2005. Enquiries: John Hancock Chief Executive Officer 020 7404 5959Mark Robson Chief Financial Officer 020 7404 5959 Susan Gilchrist Brunswick 020 7404 5959Fiona LaffanAnna Jones This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Howden Joinery