Howden Joinery Group Plc Factsheet
"To supply from stock nationwide the small builder's ever-changing,
routine, integrated kitchen and joinery requirements, assuring
no-call-back quality and best local price.."
About Howdens Joinery
- Howden Joinery Group plc is the parent company of Howdens Joinery, a leading supplier of kitchens and joinery to trade customers across the UK
- Last year, Howdens supplied over 270,000 credit account holders, all building trade professionals, with around 3.5 million kitchen cabinets, 2 million doors and 400,000 complete kitchens.
- Howdens employs around 6,300 people across the UK, mainly in manufacturing, sourcing, logistics and depots.
- Howdens was founded in 1995. By the end of December 2012, it had grown to a company with a turnover of nearly £900 million. Howdens currently operates 530 depots across the UK, with plans to open 20 - 30 in 2013, and operates 11 depots in France.
- Howdens has a unique business model. It addresses the 'done for you market,' selling kitchens and joinery from local depots to small builders nationwide. As such, it has none of the costs associated with retail businesses such as showrooms, delivery or advertising.
- Howdens operates an 'always in stock' model, and the focus is on building strong local relationships through excellent service. Account holders benefit from good credit terms (up to 60 days) and confidential discounts.
What makes Howdens different?
- Efficient UK manufacturing - Since 2011, Howdens has invested nearly £30m in manufacturing in the UK. It has also invested in a robust, scalable systems infrastructure that helps ensure consistent product quality and availability at lowest cost.
- Entrepreneurial staff with accountability - Howdens' depot staff are responsible for opening local trade accounts and building relationships with account holders. They do their own local marketing, set local pricing and are incentivised on a share of local profit.
- Trade not retail - Howdens' core customers are local builders, not retail customers. We help them to sell, design, install and finish the job quickly and profitably. Our focus on 'trade only' ensures their margin is protected and our 530 local depots always hold all our products in stock.
- Control - Howdens' control of range, design, sourcing, manufacturing and credit helps drive an efficient, low-cost business.
The journey so far
|£m unless stated||FY10||FY11||FY12*|
Continuing operations (before exceptional items)
|Revenue - Group||807.9||853.8||887.1|
|Revenue - UK depots||795.1||838.7||872.5|
|Profit before tax||100.9||111||112.1|
|Basic earnings per share||11.1p||13.5p||14.0p|
|Dividend per share||Nil||0.5p||3p|
|Net cash at year-end||35||57.1||96.4|
|Number of depots (UK)||489||509||529|
|* Operating costs increased by £5m due to 53rd week, thereby reducing operating profit and profit before tax by similar amount.|
- "Done For You" kitchens fitted by tradesmen continue to grow, at the expense of the "Do It Yourself" market.
- Over 30% of Howdens depots are not yet mature - providing inherent potential for long term sales growth.
- Management has identified the opportunity for at least 700 depots in Great Britain.
- High returns, driven by carefully incentivised staff and low property costs.
- Founded in 1995, Howdens now employs around 6,300 people across Great Britain.
- Headcount has grown by almost 12% over the last three years.
- Howdens employs 180 apprentices, with 50 more being recruited.
- Last year, Howdens provided 56,000 hours of in-house training at an approximate cost of £1.6 million.
- 1,670 of our employees have been at Howdens for more than ten years.
- Howdens invests in UK manufacturing and design in its two dedicated factories in Yorkshire and Cheshire and through approximately 2,800 UK-based suppliers of goods and services.
- 270,000 small builders rely on the Howdens business model for their livelihoods.
- Howdens is planning to open between 20 and 30 depots in 2013, which will create up to 200 - 300 new jobs.
- In the longer term, Howdens sees scope for 700 depots, which would create up to 1,500 additional jobs by the time the depots reach full maturity.
- Howdens is responsible for the pensions of some 11,500 people, including former employees of MFI, which collapsed in 2008.
- Howdens also honoured MFI's liabilities to the landlords of nearly 50 rented properties, guaranteeing their leases when MFI failed.
- Gary Rawlinson
Head of Investor Relations
Head of Investor Relations
Howden Joinery Group Plc
40 Portman Square
London W1H 6LT
Tel: 020 7535 1127/07989 397527
- Journalists should contact:
Tim Danaher/Ed Moore
Brunswick Group LLP
16 Lincoln's Inn Fields
Tel: 020 7404 5959
Registered Office and Head Office
40 Portman Square
Registered company number
- Howden Joinery Group Plc is registered in England and Wales, with the no. 02128710