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UK's Number 1 Trade Kitchen Supplier*

Howdens was founded in 1995 and has grown rapidly. In 2020 Howdens reported annual sales of around £1.5bn, with profit before tax of £185m. Howdens operates more than 700 depots across the UK and sees scope for up to 850 depots.

We address the 'done for you' market, selling kitchens and joinery from local depots exclusively to trade professionals, who then install them for end-users in all parts of the UK market - owner occupiers, private landlords, local authorities, housing trusts and small developers.

We supply over 470,000 account holders, all building trade professionals, and in 2020 sold over 4 million kitchen cabinets, 2 million doors and 1 million appliances, and 2.5 million m2 of flooring.

We offer nearly 65 kitchen ranges organised into design 'families' for easy comparison and selection. As well as kitchen cabinets and frontals, Howdens sells appliances, sinks, taps, worktops, flooring, hardware, lighting and a wide range of joinery doors, skirting and architraves that co-ordinate with the different ranges.


*Source: Mintel 2019, UK Kitchens and Kitchen Furniture Report

793

Depots

(includes 30 French and 2 Belgian depots)

£185m

2020 Profit before tax

profit before tax (2019: £261m)

£1.5bn

2020 Revenue

revenue (2019: £1.6bn)

culture-wheel

A foundation for success

Our business thrives on three core principles that are underpinned by our entrepreneurial culture. These include our trade service and convenience, product leadership, and trade value.

2020 Performance

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% 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.

During 2020:

  • 16 new depots were opened in the UK and four new depots were opened in France
  • We completed the final phase of our Raunds distribution centre development
  • Introduced 18 new kitchen ranges, with the new Hockley ranges having cabinet doors manufactured by Howdens
  • Continued to improve our digital services, both to our trade customers and to the end consumer to reinforce the Howdens model

Financial highlights

Continuing operations (before exceptional items) - financial figures for the company for the past 3 years
£m unless statedFY20FY19FY18
Continuing operations (before exceptional items)
Revenue - Group1,547.51,583.61,511.3
Revenue - UK depots1,509.61,550.31,477.3
Gross margin60.1%62.3%61.7%
Operating profit195.7260.0240.1
Profit before tax185.3260.7238.5
Basic earnings per share24.9p35.031.3p
Dividend per share9.1p13.0p11.6p
Special dividend per share9.1p--
Net cash at year-end430.7267.4231.3
Number of depots (UK)748732694

1. Focus on one customer

Howdens is focused solely on the small builder and everything the business does is geared towards making the builder's life easier. Howdens offers builders a relevant, well-designed, high-quality range of kitchens, together with appliances, joinery, flooring and hardware, via trade-only depots that are always in stock. Our trade customers benefit from a confidential discount and account terms that allow them to manage their business and determine an appropriate margin for each job they undertake.

 

in-the-community

2. Entrepreneurialism, accountability and control

Each of our local depots are dedicated to helping local trade customers build their businesses. The depot manager’s autonomy is a key element of Howdens’ business model. Depot managers hire their own staff, do their own local marketing, set local pricing, manage the level of discount applied to their account holders and manage their own stock levels to suit their own local customers.

Entrepreneurialism, accountability & control

3. Manufacturing and Design

Our own supply chain serves over 700 local depots nationwide. No two deliveries to our depots are alike, and each one must be correct, complete and on time. Trusted supplier relationships and efficient, sustainable UK manufacturing and distribution helps ensure consistent product quality and availability at the lowest cost. We make what it makes sense to make, and we buy what it makes sense to buy.

 

Low-cost operations

Contacts

Media Enquiries

Journalists should contact:

Brunswick

[email protected]

For image requests, please contact:

[email protected]

Investor Relations

Institutional investors and analysts should contact:

Guy Stainer
Head of Investor Relations

 

Howden Joinery Group Plc
40 Portman Square
London
W1H 6LT

 

Tel: 020 7535 1164

Email: [email protected]