Howdens sales, profits and margins improve in first half

(Sharecast News) - Howdens reported first-half sales of £1.03bn on Thursday, up 3.3%, while underlying operating profit increased 5.5% to £128.1m and underlying pre-tax profit rose 4.3% to £122.2m. Its gross margin improved to 62.8% from 62.1%, supported by pricing, volume growth and sourcing and manufacturing efficiencies, while underlying earnings per share increased 5.5% to 17.3p.

The FTSE 100 kitchen supplier maintained its full-year outlook and said trading remained in line with expectations ahead of the key autumn period.

Howdens completed the £390m acquisition of DIY Kitchens after the half-year end and said the business was expected to be immediately accretive to revenue, margins and earnings.

The interim dividend was raised 2% to 5.1p, while the company reiterated plans to complete its £100m share buyback in the second half.

At 0916 BST, shares in Howden Joinery Group were up 1.16% at 784p.

Reporting by Josh White for Sharecast.com.

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