Sales and profits dip for Howden Joinery
Howden Joinery, which has depots across the West Midlands, saw both sales and profits dip last year due to the coronavirus pandemic.
The group, which sells kitchens and joinery products, continued its expansion with 16 new depots opened in the UK during 2020, bringing the total to 748 at the end of the year.
Revenue fell 2.3 per cent to £1.54 billion with UK depots down 2.6 per cent to £1.50bn.
Pre-tax profits fell 28.9 per cent to £185.3 million.
Chief executive Andrew Livingston said: "Howdens performed well during 2020. We adapted to Covid trading conditions and progressed our strategic plans for the business. Our performance demonstrates the strength of our trade only business model and our ability to evolve the business while prioritising the health and wellbeing of our staff and customers.
"Following a sharp drop in sales in quarter two when the UK entered its first national lockdown, our performance improved significantly in the second half, with sales up 16 per cent compared to the equivalent period in 2019, as we benefitted from pent-up demand and the consumer's desire to invest in their homes.
"The year ended strongly with profit and cash flow ahead of expectations and we were able to repay the Government furlough and other support taken earlier in the year. We are also pleased to be resuming dividend payments.
"Given the Covid-related and other economic uncertainties, we remain cautious about underlying market conditions; however, we are encouraged by the progress made in 2020 and remain confident in our business model for the future."
Four new depots opened in France, bringing the total in France and Belgium to 30 at the end of 2020.
The group ended the year with 63 kitchen ranges having introduced 18 new ones, with the new Hockley ranges having cabinet doors manufactured by Howdens.
Good progress was made developing the digital offering, with the Howdens.com web platform improving brand awareness and leading to increased web visits, brochure requests and depot contacts.
Howdens said it had made a solid start to 2021 but has seen some greater caution from end consumers on allowing trades people into their homes under the current lockdown.
It remains cautious about the ongoing impact that Covid-19 may have.
Capital expenditure of around £80m is expected in 2021, including around 45 new depots and 40 depot refurbishments.
