Key Highlights

Highlights

Financial highlights

• Howden Joinery revenue increased by 13.6% to £768.4m (up 8.9% on same depot basis).
• Group operating profit before exceptional items from continuing operations increased by 34.1% to £88.1m, reflecting:
• depot contribution up £23.3m; £13.0m purchasing gain, including currency effects; offset by £12.3m obsolete depot and warehouse stock provisions.
• Profit before tax and exceptional items from continuing operations rose 39.5% to £79.8m (£44.4m after exceptional items (2006: £25.0m)).
• Basic earnings per share before exceptional items from continuing operations up 49.2% to 9.1p.
• Basic earnings per share from continuing and discontinued operations 7.3p (2006: (28.7)p).
• Net debt fell by £0.8m, resulting in the Group having net debt of £3.3m at 29 December 2007.
• Final dividend of 0.5p per share proposed (2006: nil).

Operating highlights

• 54 new Howden Joinery depots opened in 2007, bringing total to 436 - opportunity for network of over 600 depots identified.
• Supply of products and logistics services to MFI successfully concluded on 21 December 2007.
• Restructuring and realignment with Howden Joinery of factory and logistics operations proceeding to plan.

Current trading

• Trading has been satisfactory in the first part of 2008.

Galiform's Chief Executive, Matthew Ingle, said:

"2007 was a very pleasing year, both in terms of our financial performance and operational and strategic developments.  Building on the transformation of the Group begun in 2006, when we refinanced the business, put our supply operations on a commercial footing and sold MFI, it demonstrates the significant opportunities we have ahead of us and our continuing ability to take the business forward.

"Across the Group, there is a renewed vigour and focus.

"Howdens traded well throughout the year, particularly in the second half as it reaped the benefits of new products, better design and closer relationships with our supply operations.  It continued to grow, opening 54 depots, and a number of new initiatives were pursued.

"Our supply operations not only delivered the benefits from changing our sourcing of appliances and fascias, they successfully managed and exited the product supply and logistic services relationship with MFI.  This has enabled a restructuring of the supply operations that further aligns them with Howdens' operations and its future requirements.

"We have made a positive start to the new financial year and will continue to take the Group forward, both growing the business and strengthening our competitive position."

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