Howden Joinery Swings To Interim Loss On Covid-19 Hit

(Alliance News) - Kitchens supplier Howden Joinery Group PLC on Thursday said first-half results ...

Alliance News 23 July, 2020 | 10:29AM
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(Alliance News) - Kitchens supplier Howden Joinery Group PLC on Thursday said first-half results were "materially" impacted by the Covid-19 pandemic, and the company remains cautious about the future as predictions for demand levels remain difficult due to ongoing uncertainness.

The company swung to a pretax loss of GBP14.2 million for the 24-week period to June 13, from GBP78.1 million profit a year ago, as sales were hurt by the government-imposed lockdown to tackle the virus outbreak.

Group revenue plummeted 29% to GBP465.0 million from GBP652.6 million. Howden Joinery UK depot revenue also fell by 29%, to GBP453.4 million, and by 30% on a same-depot basis.

Chief Executive Officer Andrew Livingston, said: "The shortfall in sales all occurred in the second quarter, which coincided with the start of lockdown in the UK, and led to us making an overall loss of GBP14 million in the first half. Our performance improved period on period in the second quarter as we found ways to re-open for business safely and with full stock availability."

In the first four-week period of the second half to July 11, total sales at Howdens Joinery UK depots rose by 2.2% on the same period in 2019, and by 0.3% on a same-depot basis.

The company, during the course of 2020, now plans to open around 20 depots in the UK and France.

Capital expenditure is estimated at around GBP60 million versus GBP61.1 million a year ago. Howden Joinery expects to incur additional operating costs of GBP20 million in 2020.

"We continue to be cautious given the economic uncertainties that we face, with our key period trading ahead of us and with consumer and regulatory reactions to Covid-19 making predictions of future levels of demand difficult. However, despite this, we remain confident in our business model for the future," the company said.

Shares in Howden Joinery were down 1.6% at 547.60 pence each in London on Thursday morning.

By Tapan Panchal; tapanpanchal@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Howden Joinery Group PLC 533.40 GBX -0.37 -

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