Howden Joinery Group PLC Trading Statement (8481D)
November 02 2020 - 1:00AM
UK Regulatory
TIDMHWDN
RNS Number : 8481D
Howden Joinery Group PLC
02 November 2020
2 November 2020
Howden Joinery Group Plc
('Howdens' or the 'Company')
TRADING UPDATE
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
Howdens today announces its trading update for the period 14
June 2020 to 31 October 2020 (Period 7 to Period 11).
Howdens' priority continues to be the health and wellbeing of
our employees and customers, while acting fairly and responsibly in
all our stakeholder relationships.
Trading
As previously announced, Howdens results for the first half were
impacted significantly by the disruption caused by lockdown in the
second quarter. However, by Period 6 all sites were open and
operating safely and in Period 7 Howden UK sales were 2.2% ahead of
Period 7 sales in 2019.
Since then, trading has improved significantly. Howdens UK
depots' total revenue for Periods 7 to 11 increased by 12.3% and by
10.1% on a same depot basis, on Periods 7 to 11 in 2019, with gross
margin ahead of the first half of 2020 but lower than the same
period in 2019. With signs of pent up demand since lockdown and a
high level of stock availability, we extended our "P11" sale period
across Periods 10 and 11 this year. This helped our supply chain
management and the ability of depots to service demand.
For the year to date (Periods 1 to 11), total UK revenue was
6.8% below that for 2019.
On a local currency basis, Howdens French and Belgian depots'
total revenue for Periods 7 to 11 increased by 33.3% and by 25.4%
on a same depot basis, on the comparable Periods in 2019. Total
revenue for the year to date was 7.9% up on the comparator
period.
Capital allocation & Government Support
Taking into account Howdens cash position and recent trading
performance, the Company intends to repay the GBP22m it received in
the first half under the UK Government's Job Retention Scheme
before the end of the year. No claims have been made under this
Scheme in the second half and no further claims are expected to be
made. The Company also intends to repay around GBP8m of business
rates that were waived by certain local councils. Other deferred
payments, such as taxes and pension deficit contributions, will
also be made before the end of the year.
Subject to the Company's trading performance and financial
position continuing to meet the Board's expectations and there
being no further significant disruption due to COVID-19 or
otherwise, the Board will consider recommencing payments of
dividends with the announcement of Howdens 2020 full year results
in February 2021.
Business developments
As previously announced, Howdens expects to open a total of
around 15 depots in the UK in 2020, taking the total number of
depots in the UK to around 747, and to refurbish around 30 older
depots to the updated format. Four new depots are expected to be
opened in France.
Chief Executive Officer, Andrew Livingston, said:
"I am very pleased with Howdens trading performance in the
second half to date with sales in Periods 7 to 11 being
particularly strong.
"COVID-19 has had a significant impact on all of our lives and
Howdens' priority remains ensuring that our employees and customers
are safe and supported. We have also found new ways of working so
that we can manufacture safely in a socially distanced environment
and, together with our suppliers, ensure stock availability to
support customer needs.
"With our Autumn peak trading period concluded, we are
progressing our business initiatives, including depot opening and
reformatting programmes, new product introductions and digital
developments. We remain confident in our business model, which is
founded on strong customer relationships and having product
in-stock locally. However, we remain cautious about the immediate
outlook in these very uncertain times."
Next scheduled announcement
The Group expects to release its 2020 Preliminary Results on 25
February 2021.
Enquiries
Investors/analysts:
Guy Stainer
Head of Investor Relations +44 (0) 7739 778187
Media:
Citigate Dewe Rogerson
Simon Rigby + 44 (0) 20 3926 8522, Kevin Smith +44 (0) 20 3926
8509
Nick Hayns + 44 (0) 20 3926 8503
Note to editors:
Howden Joinery Group Plc is the parent company of Howden Joinery
(Howdens). In the UK, Howdens is engaged in the sale of kitchens
and joinery products to trade customers, primarily small local
builders, through more than 730 depots. Around one-third of the
products it sells are manufactured in the company's own factories
in Runcorn, Cheshire, and Howden, East Yorkshire. The business also
operates a total of around 30 depots in France and Belgium.
For more information: www.howdenjoinerygroupplc.com
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