22nd Nov 2007 07:01
Galiform PLC22 November 2007 Galiform Plc TRADING UPDATE The trading and development of Galiform has continued on track, with theimproved sales performance of Howden Joinery evident in the summer continuingthroughout the autumn. The performance across the Group reflects the benefit ofthe refocusing of effort that has been achieved following the disposal of MFIlast year. Howden Joinery At the time of the announcement of our 2007 Interim Results (6th September), wereported that there had been an upturn in trading over the summer. Although thewet weather may have had some positive impact in July and August, as our primarycustomer - the small local builder - chose to work indoors, good trading hascontinued throughout the autumn, and in particular, the important Octobertrading period, when sales are typically more than double the level seen inother periods. Total sales for the first eleven periods of the year, to 3 November, were 13.9%*higher than last year, 9.3%* up on a same depot basis. The Howden Joinery grossmargin for the year to date remained in line with that seen in 2006 as a whole. The increase in sales reflects the benefit of improvements to the product rangesold, both in terms of the scope of the kitchens offered, and new productsintroduced to meet the ever-higher aspirations of all end-consumers, such as'range' cookers. This has led to both increased volume and additional 'add-on'sales, increasing the average value of kitchen sales. Also reflected in this performance, and of particular importance in our keyOctober trading period, were the improvements that have been made in the supplychain over the last year or so. As well as contributing to the development ofthe product range, these also meant that confidence about product availabilityhas risen, enabling depot staff to set ambitious targets for the period and moreaggressively pursue sales opportunities. The business is now trading from 426 depots. With 10 depots currently beingfitted out, it is expected that 54 depots will open in 2007, bringing the totalto 436 by the end of the year. Supply Arrangements for the termination of product supply and logistics services to MFIare proceeding to plan, with final deliveries scheduled for just over four weekstime, on 21 December. The restructuring of Supply is progressing to plan and afull update on the restructuring will be provided in the 2007 PreliminaryResults, to be announced on 6 March 2008. Outlook Financial performance for the year is expected to be in line with management'sprevious expectations. * Note The inclusion of a 53rd week in 2006 means that the business traded forall of the year-to-date in 2007, whereas in 2006 the depots were closed for thefirst week, which covered the Christmas shutdown. These figures have beencalculated by comparing the first eleven periods in 2007 with the same calendarperiod in 2006. Enquiries Investors/analystsGary Rawlinson Head of Investor Relations, +44 (0)207 535 1127 Galiform +44 (0)7789 397527 MediaBrunswickFiona Laffan/ Nebat Sukker +44 (0)207 404 5959 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Howden Joinery