Howdens Factsheet
Our purpose is to help our trade customers achieve exceptional results for their customers and to profit from doing so. When our customers succeed, we succeed. Our purpose drives our business model and shapes our strategic decisions.
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
781
Depots
(includes 28 French and 2 Belgian depots)
£185m
2020 Profit before tax
profit before tax (2019: £261m)
£1.5bn
2020 Revenue
revenue (2019: £1.6bn)
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
| £m unless stated | FY20 | FY19 | FY18 |
|---|---|---|---|
| Continuing operations (before exceptional items) | |||
| Revenue - Group | 1,547.5 | 1,583.6 | 1,511.3 |
| Revenue - UK depots | 1,509.6 | 1,550.3 | 1,477.3 |
| Gross margin | 60.1% | 62.3% | 61.7% |
| Operating profit | 195.7 | 260.0 | 240.1 |
| Profit before tax | 185.3 | 260.7 | 238.5 |
| Basic earnings per share | 24.9p | 35.0 | 31.3p |
| Dividend per share | 9.1p | 13.0p | 11.6p |
| Special dividend per share | 9.1p | - | - |
| Net cash at year-end | 430.7 | 267.4 | 231.3 |
| Number of depots (UK) | 748 | 732 | 694 |
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.
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.
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.
Contacts
Media Enquiries
Journalists should contact:
Citigate Dewe Rogerson
For image requests, please contact:
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]