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27 July 2011

Howden defies 'demanding' market

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Howden Joinery, the company that retails more kitchens than any other in the UK, is continuing to grow despite a 'demanding' market.

For the first half of 2011 up to mid-June, the company's revenue increased by nearly 5% to just under £335 million and pre-tax profit went up by almost £2m to £23.5m.

These figures contrast the results from Nobia, the owner of Magnet, which saw its UK performance drop compared to the wider European market.

 "We are pleased to have increased sales and profit in what are demanding market conditions," said chief executive Matthew Ingle. "This performance is testament to the strengths of our business model and the efforts of all our staff. It also gives us confidence to continue to invest in the long term growth of the business."

This growth plan is marked by the company's achievements in the first six months of the year. As well as the introduction of new products, it has opened five new depots, bringing the total to 494. It has also ordered £12m worth of new cabinet production lines at Runcorn in Cheshire, and Howden itself in Yorkshire as part of an ongoing £20m investment programme.

Around one-third of the products it sells are manufactured in its two factories.

The company says the growth has been achieved through a number of factors, including an increase in the value of individual kitchen purchases thanks to a higher proportion of sales from mid and higher priced ranges.

"We expect market conditions to continue to be challenging for the rest of year," Ingle said. "But remain confident about our performance, which is in line with expectations for 2011."

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