Howdens knows what it stands for: to help our trade customers achieve exceptional results for their customers and to profit from doing so. When our customers succeed, we succeed.
*Source: Mintel, Kitchens and Kitchen Furniture, UK September 2020
(including 58 in France, 2 in Belgium and 5 in Republic of Ireland)
To deliver the best local price for our customers, we continue to refine our manufacturing, supply and logistic operations to drive efficiencies that keep costs down. By keeping our manufacturing in-house and establishing long-term supplier agreements we can ensure our products remain competitively priced and readily available at depots nationwide. That is why many of our products are British made in our factories in Howden, West Yorkshire and Runcorn, Cheshire.
Howdens delivered a strong performance in 2022, with good progress on executing our strategic priorities and further market share gains. During the year our teams have been adept at navigating the challenges of high inflation and supply chain disruption, while supporting our customers with a market leading product range, high stock availability and outstanding customer service.
Our markets are large and fragmented which gives us a long-term opportunity for growth. In response, we are continuing to expand our depot network, improve our product range, optimise our manufacturing and supply chain, and develop our digital capabilities. We see potential for around 1,000 depots in the UK and we are now selectively expanding our business model internationally in France and the Republic of Ireland.
Our robust financial position underpins our strategy, funding investment in our growth initiatives, expanding our manufacturing and supply chain capabilities, and supporting ongoing cash returns for shareholders.
2022 operational highlights
|£ millions (unless stated)|| |
|UK depot revenue||2,256.1||2,043.3||+10.4%||+45.5%|
|Gross profit margin, %||60.9%||61.6%||-70bps||-140bps|
|Operating profit margin, %||17.9%||19.2%||-130bps||+150bps|
|Profit before tax||405.8||390.3||+4.0%||+55.7%|
|Basic earnings per share, p||65.8p||53.2p||+23.7%||+88.0%|
|Total ordinary dividend per share, p||20.6p||19.5p||+5.6%|
|Cash at end of period||308.0||515.3|
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, through 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.
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.
Our in-house distribution operation delivers from our factories and central warehouses to our network of over 800 depots. No two deliveries are alike, and each one must be correct, complete and on time. We can guarantee this because we control our own distribution.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.
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Howden Joinery Group Plc
40 Portman Square
Email: [email protected]