Howden Joinery Group (HWDN) H2 2014 earnings summary

Executive summary

• Revenue increased to £1,090.8m from £956.5m, with pre-exceptional operating profit rising to £189.8m from £140.7m.

• Growth reflected strong UK depot sales, continued investment in depots and products, and a cash-generative trade model focused on local stock and service.

Financial highlights

• Continuing-operations revenue was £1,090.8m vs £956.5m; gross profit was £694.5m vs £590.2m.

• Pre-exceptional operating profit was £189.8m vs £140.7m; profit before tax was £188.8m vs £135.0m.

• Profit for the period was £148.7m vs £101.3m; 2014 also included £9.1m profit after tax from discontinued operations.

• Operating cash flow before working-capital movements was £217.4m vs £167.8m; closing net cash rose to £217.7m from £140.5m.

Outlook and guidance

• Sales in the first two periods of 2015 were up 9.9%, excluding the first week, which had one fewer trading day in 2014; expectations were unchanged.

• Additional costs were expected from French depots, interim warehousing and pension charges, alongside increased capital expenditure; timely actions were planned.