- Howden’s turnover stagnated last year due to declining demand at UK warehouses
- Shares in the London-based company rose 8.9% to 841.2 pence at midday.
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Howden Joinery Group Shares spiked Thursday morning after the kitchen materials supplier noted “encouraging” revenue growth so far this year.
Shares in the London-based company rose 8.9 per cent to 841.2 pence at midday, making it the second-biggest riser on the FTSE 250 behind power generation business Drax Group.
It revealed that revenue had increased in all countries where it operates compared to the equivalent time in 2023.
Howden shares were the second biggest riser on the FTSE 250 behind power generation business Drax Group.
Howden’s turnover was stable at £2.31bn last year, reflecting weaker demand in UK deposits as cost of living pressures and higher interest rates deterred more Britons carrying out property renovations.
Operating profits also fell by £75m to £340.2m following a rise in construction inflation costs and investment to open new warehouses and improve storage and transport schemes.
However, the company’s total revenue and operating profit remained well above pre-pandemic levels: the former increased by 45.9 percent and the latter about 31 percent more than in 2019.
Howden received a significant boost from the lockdown era, sparking a DIY boom.
Record-low mortgage rates, a temporary stamp duty holiday and the desire for more space further boosted the home improvement sector at the time.
Sales expansion has inevitably slowed across the industry since the end of Covid-related restrictions led people to spend more time outdoors and work less frequently from home.
But Howden has continued to expand its depot network, opening 33 in the UK and ten in France and the Republic of Ireland last year.
As part of its goal of having 1,000 warehouses, the company aims to launch 40 more sites and reformat a further 85 in the UK during 2024.
Andrew Livingston, its chief executive, said: “Our strong balance sheet supports our strategy as we invest in growth, including expanding our manufacturing and supply chain capabilities, and returning excess capital to shareholders.”
“While we are cautious about the macroeconomic and geopolitical environment, given the encouraging start to the year and the agility of our business model, the board of directors is confident about the outlook for 2024.”
Livingston succeeded Howden founder Matthew Ingle in 2018, after a spell in charge of Kingfisher subsidiary Screwfix Direct and time at B&Q and Wyevale Garden Centres.