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Howden profits wobble but sales robust in 2018
Howden Joinery registered a slight fall in annual profit as costs rose faster than revenue but the kitchen company said sales remained robust at the start of 2018.
Operating profit for the year to the end of December fell 1.2% to £234.4m as revenue rose 7.4% to £1.4bn. Selling and distribution costs rose 10% to £564.5m as Howden introduced new products, invested in a new distribution centre, and incurred an extra week of costs in the period and higher costs for materials.
Howden's performance has remained resilient as other companies with sales linked to the housing market have suffered from falling property transactions. It has introduced cheaper ranges and held off from increasing prices at the start of 2018.
The company, which sells to tradesmen, said it was watching the market carefully but that it expected trading to remain positive.
"At present, we see the robust sales performance of the second half of 2017 continuing into 2018. We believe that current market conditions are stable, although we remain watchful given continuing economic uncertainties."
The FTSE 250 company's shares rose 5.8% to 470p at 08:08 GMT.