Howden Joinery ramps up dividend after solid year

Howden Joinery beefed up annual earnings and underlined its confidence in future trading with a six fold increase in its full year dividend.

Howden Joinery beefed up annual earnings and underlined its confidence in future trading with a six fold increase in its full year dividend.

Howden, whose products are predominantly sold to small local builders for installation in public and private housing, said group revenue rose to £887.1m from £853.8m in 2011.

The kitchen supplier said pre-tax profit climbed to £112.1m from £111.0m previously. Gross profit margin increased to 61.5% from 59.7% before. Operating profit rose from £115.3m to £119.8m.

"Although there was a modest decline in the volume of kitchen cabinets sold, the impact of this was offset by an improved gross profit margin and changes in the mix of kitchen ranges sold," the group explained.

Revenue at Howden Joinery UK depots increased by 4% to £872.5m or 1.9% on same depot basis. Sales from its French depots rose 5% to £14.6m on a same depot basis in constant currency terms.

Looking ahead, Howden said its outlook for the business remains unchanged and it is well placed to respond to the ongoing challenging conditions.

Net cash at end of period surged to £96.4m from £57.1m.

"For the rest of 2013, we expect market conditions to continue to be challenging and we remain cautious about the outlook. As in recent years, we will quickly and appropriately adapt our business model to the market and economic conditions we encounter," it added.

A full year dividend of 3p per share has been recommended, up from 0.5p in 2011.

CJ

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Bitcoin: fool’s gold or the new gold?
Bitcoin

Bitcoin: fool’s gold or the new gold?

With bitcoin hitting new highs last week, and close to becoming a mainstream investment, is it really gold for the 21st century?
15 Jan 2021
The MoneyWeek Podcast: bitcoin special
Bitcoin

The MoneyWeek Podcast: bitcoin special

Merryn talks to bitcoin experts Dominic Frisby and Charlie Morris to get the lowdown on the cryptocurrency to find out why it's such a huge global phe…
15 Jan 2021
Leasehold reforms promise the end of a nightmare for many homeowners
Property

Leasehold reforms promise the end of a nightmare for many homeowners

Horror stories about unscrupulous landlords profiting from a legal relic of the feudal era are about to get a happy ending, says Simon Wilson.
16 Jan 2021