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.

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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