Howden Joinery pleased with underlying performance in first half of 2013
Chief Executive, Matthew Ingle, said:
"We are pleased with our underlying performance in the first half of the year, which has been in line with our expectations. Our current performance confirms our strategy of investing in the growth of the business, in all core areas.
"We have started the second half well and we are on track with our plans for the year as a whole. Looking forward, with our important 'period 11' still to come, anticipated operating cost increases and market conditions continuing to be uncertain, our expectations for the year are unchanged, albeit that we have the flexibility and responsiveness to react to whatever conditions we encounter."
Financial results (continuing operations)
Because of the 2013 financial year starting a week later than in 2012, results for the first half of 2013 reflect the benefit of an additional trading week in the first period of the year, which will be reversed at the end of the second half of the year. This is estimated to have increased operating profit and profit before tax for the first half of the year by around £6m.
Howden Joinery UK depot revenue increased by 7.3% to £383.7m (up 5.5% on a same depot basis), rising by 4.3% if the first period of the year is excluded. Group revenue was £390.8m (2012: £364.6m);
Gross profit margin was 61.5% (2012: 60.3%);
Operating profit pre exceptional items rose to £45.1m (2012: £29.6m);
Profit before tax and exceptional items increased to £43.2m (2012: £25.9m);
Basic earnings per share pre exceptional items increased to 5.0p (2012: 3.2p);
An exceptional operating cost of £4.5m was incurred, to reconfigure our transport operations (2012: nil) ;
Net cash of £102.0m at 15 June 2013 (29 December 2012: £96.4m net cash, 9 June 2012: £37.4m net cash);
Interim dividend of 1.0p per share declared (2012: 0.3p).
