financial highlights

Overview of performance in 20211

 

2021 was a very successful year for Howdens as we both delivered record financial results and progressed our strategic plans for the business. Our performance demonstrates the strength of our trade only, in-stock local business model and our ability to meet heightened demand for our products.

 

Financial highlights:

  • Group revenue of £2,093.7m was 35.3% ahead of last year reflecting the strengths of our trade only, in-stock business model.
  • UK depot revenue 35.4% ahead of last year and 33.7% ahead on a same depot basis2.
  • Gross margin progression of 61.6% year-over-year with disciplined pricing recovering cost increases.
  • Profit before tax of £390.3m, up 110.6% on 2020 and 49.7% on 2019, significantly outpacing revenue growth.
  • Good cash generation and the balance sheet remains strong with cash at end of period of £515.3m.
  • Final dividend of 15.2p per share bringing total dividend to 19.5p per share with £50m share buy-back completed.
  • New £250m share buy-back announced today.
  • Good progress on ESG, achieving carbon neutral status at our two principal UK manufacturing facilities this year.

1 The information presented relates to the 52 weeks to 25 December 2021, the 52 weeks to 26 December 2020 and the 52 weeks to 28 December 2019, unless otherwise stated. The 2021 and 2020 results are presented under IFRS 16, 2019 results have not been restated.

2 Same depot basis for any year excludes depots opened in that year and the prior year.

 

Operational developments:

  • Opened 31 new depots in the UK, bringing the total to 778 at period end and revamped 62 older UK depots in the year. By the end of 2021 we had 210 UK depots trading in the updated format.
  • Opened 10 new depots in France, bringing total to 40 at the period end.
  • Introduced 17 new kitchen ranges and grew higher priced kitchen ranges strongly in the year.
  • Continued to invest in upgrading our manufacturing capacity and capabilities to support future growth which included investment in capacity for kitchen frontals, solid work surfaces, architrave and skirting products.
  • Invested in regional cross docking facilities (XDCs) with 6 operating at the end of the period supporting around 400 depots. XDCs enable improvements in customer service and product availability by optimising inventory and delivering patterns of product to depots across the full product range.
Invested in our digital platform which amongst other things saves our trade customers time and money and supports them in optimising the procurement process for end users.

 

£2.1bn

Revenue (2020: £1.5bn)

61.6%

Gross margin (2020: 60.1%)

£402m

Operating profit (2020: £196m)

 

£390m

Profit before tax (2020: £185m)

£515m

Net cash (2020: £431m)

19.5p

Total full-year dividend per share for 2021 (15.2p final dividend and 4.3p interim dividend)

Download 2021 annual report

2021 Annual Report

Download a copy of the 2021 Annual Report

Financial Highlights

Chairman’s statement

Chief Executive’s statement

Shareholder Information

For further information please use the links below

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Business Model and Strategy

Find out more about our business model and strategy, the markets in which we operate and our strategic approach to protect our unique business model and ensure that the business continues to grow.

Depots

As a familiar sight across towns and cities in the UK and Europe, our depots are always within easy reach, so a trade professional never has far to travel to find their nearest Howdens. Get to know more about how each one operates.

Sustainability

Our sustainable behaviour is at the heart of our business and enables us to reduce some of our risks. We take great pride in ensuring that our business positively impacts the world around us and the people within it.

Community

We are passionate about supporting the local communities we operate in, which is why our depots and support staff actively seek ways to give something back. Whether it is running half marathons or sponsoring local Scout groups, discover the many ways we help good causes.

Products

With around 80 kitchen ranges, our exclusive Lamona appliance brand, and thousands of products across joinery and hardware, learn why our builders have come to trust the range and quality of the products we offer.

People and Careers

The Sunday Times named Howdens as one of the top 25 big companies to work for. Discover why Howdens is a great place to work, how we develop our people and reward them, whilst building a culture with an entrepreneurial spirit.

Financial Results

Download copies of the latest financial results for Howdens both past and present including the associated presentations and Interim Management Statements released between results announcements.

Governance

Howdens is a responsible business which was founded on the tenet that the Company should be worthwhile for all concerned, with a commitment to the people within its reach and the wider world. Here we provide the links to the framework that informs our decisions and outcomes.