Divi reinstated at Howden Joinery

Building trade supplier Howden Joinery resumed dividend payments as it reported a 9% rise in full year profits, in line with expectations.

The group, which supplies kitchen, bathroom cabinet and joinery products to small builders and trade professionals, said pre-tax profit increased to £110m in the year ended 24 December 2011 from £100.9m the year before. Group revenue rose to £853.8m from £807.9m.

Gross profit margin at the group, which was spun out of the old MFI business, was little changed at 59.5% from 59.8% the year before.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Operating profit rose from £107.4m to £114.3m, partly reflecting one-off cost benefits totalling £5m. Howden Joinery UK depot revenue increased by 5.5% to £838.7m and was up 3.1% on same depot basis.

Howden Joinery UK depot revenue in the first two periods of 2012 rose by 1.6% and slowed to 0.1% on a same depot basis, reflecting tough comparators from 2011.

"We expect market conditions to continue to be challenging and remain cautious about the immediate outlook," it said in a statement.

A full year dividend of 0.5p per share has been recommended.

CJ