1207 Friday 25 January 2019

First opening back in 1995 as a department within the now defunct MFI, Howdens Joinery now operates from 670 of its own depots within the UK and has others spread throughout Western Europe. The core business of the company is within the realm of kitchen surfaces, units and accessories to both trade and retail. Recent advancements on the retail side now include both an in person and virtual design service.

The company is reporting on 28th February with many analysts bullish on their performance and that all comes down to solid financials. Howdens has total revenue of £1.4bn, an operating income of £234.4m and a net income of £185m, all with no debt. The 2018 full year dividend was 11.2p and this is expected to rise to 12.1p in for the full year of 2019.

The have been peaks and troughs in the 12 month share value for HWDN.L, the stock is still over 10% up on the year.

1 year chart

1 year chart

Moving forward for the company, while there is somewhat of a cloud hanging over the UK homebuilding and contractor sector due to Brexit concerns, this is not necessarily a worry to Howdens as they offer services to both retail customers and private trade clients that may not be tied to the bigger names within the homebuilding sector. On top of this, as there may be a potential drop in new home sales depending on the Brexit outcome, many home buyers may seek the services of Howdens to make improvements to existing homes. To top this, bucking the trend of some outlets, Howdens intends to build on their 670 UK depots.

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