Source: Sharecast
Updating on trading, the kitchen and joinery supplier said group sales in the near five months from 14 June to 31 October jumped 6.8%, with UK sales up 6.8% and international sales ahead 6.2%.
On a pro-forma basis, group sales rose 2.1% during the period, following a 1.8% lift in domestic sales and a 10.2% jump overseas.
Howdens is the UK’s largest trade kitchen and joinery supplier, but in the summer acquired online consumer-facing retailer DIY Kitchens. Andrew Livingston, chief executive, said the business was trading in line with expectations, adding: "It’s differentiated customer proposition and new route to market further expands our addressable customer base in the UK."
He continued: "Our trade-only business has continued to grow, supported by our highly engaged and well incentivised local teams, industry-leading product ranges and consistently high stock availability."
As a result, the business - which has 893 depots in the UK and 82 in France, Belgium and Ireland - said it remained on track to meet its 2026 full year outlook. Consensus is currently for underlying pre-tax profits of £361m.
As at 1200 GMT, the stock had put on 2% at 854p.
Jefferies, which has a ‘hold’ rating on Howdens, said: "Against investor nerves towards UK RMI [repair, maintenance and improvement] and suggestions from peers of ongoing weakness in this market, we see today’s update as reassuring.
"Not only does the sequential slowdown post the first half seem down to the temporary effect of warm weather in July…but they are also very comfortable in reaching both 2026 and 2027 full year consensus, which contrasts with many UK construction peers cutting forecasts or refraining from reiterating prior guidance so far this reporting season."
The latest S&P Global construction purchasing managers index showed a further sharp decline in the sector on Thursday. Companies are facing a number of headwinds, including mounting cost pressures and weakened demand.
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