A “relentless” operational focus has enabled Howdens Joinery to maintain its profits during the recession.
Pre-tax profits at the trade-only kitchen and joinery supplier for the 12 months ended December 26, 2009 were £68.7m (2008: £74.3m) from sales of £756.4m (2008: £782.9m). Operating profits increased by £3.6m to £79.5m.
Sales performance improved as 2009 progressed, increasing by 4% in the fourth quarter compared with 2008.
Stock levels at the end of 2009 were £35m lower than at the end of 2008, as the business adjusted to reduced trading levels. It also generated raw material, finished product and logistics sourcing gains of £25m.
A decision was taken last November to recommence the store opening programme, with eight new depots added in the final four weeks of the year, with 20-30 to be added in 2010. Howdens now operates 462 depots.
“The group remains committed to its view that the number of depots in the UK can be increased to more than 600 in the longer term,” it said.
The company, whose customer group is focused on small builders, is currently rolling out a new range of kitchens and will continue to increase awareness of its brand.
Howdens’ sales so far in 2010 are down 3.7%, reflecting the impact of snow and prolonged cold weather.
“We expect market conditions in 2010 to remain challenging and are cautious about the outlook for the year,” said Matthew Ingle, group chief executive of Howdens’ parent company Galiform.
