Howden Joinery Group (HWDN) H2 2013 earnings summary

Executive summary

• Revenue rose 7.8% to £956.5m; profit before tax, pre-exceptionals, increased 23.5% to £138.4m. Net cash closed at £140.5m.

• Strategy centered on local depot service, product availability and value; continued investment supported plans for further depot and infrastructure growth.

Financial highlights

• Revenue £956.5m vs £887.1m; gross profit £590.2m vs £545.3m; operating profit £142.5m vs £119.8m.

• Profit before tax, pre-exceptionals, £138.4m vs £112.1m; profit for the period £103.8m vs £88.0m.

• One-off exceptional pre-tax operating cost of £4.5m in 2013; 2012 included a £4.4m loss from discontinued operations before tax.

• Earnings per share before exceptional items from continuing operations rose to 16.3p from 14.0p; recommended final dividend 4.5p and full-year dividend 5.5p.

Outlook and guidance

• Sales in the first two periods of 2014 were up 7.3%; expectations for the year remained unchanged as improving market conditions continued.

• Plan to open up to 30 depots in 2014 and continue investing in growth; management said it would take timely actions.

• Planning underway for national distribution capacity beyond 2019, with the Northampton area expected to remain the preferred location.