REG - Howden Joinery Grp - Half Year Report
24/07/2025 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250724:nRSX3002Sa&default-theme=true
RNS Number : 3002S Howden Joinery Group PLC 24 July 2025
Positive trading momentum and market share gains in the first half.
On track with the outlook for 2025.
Group results summary(1)
H1 2025 H1 2024 Growth
Sales £997.6m £966.3m +3.2%
- Adjusted sales(2) +4.3%
Gross profit margin 62.1% 60.8% +130bps
Operating profit (EBIT) £121.4m £117.2m +3.6%
Profit before tax (PBT) £117.2m £112.3m +4.4%
Basic earnings per share 16.4p 15.4p +6.5%
Interim dividend per share 5.0p 4.9p +2.0%
Cash at end of period £321.4m £165.5m
(1.) The information presented relates to the 24 weeks to 14 June 2025 and the
24 weeks to 15 June 2024 unless otherwise stated.
(2.) Adjusted sales includes an adjustment for 2 fewer trading days in H1 2025
versus the prior year, worth c.£10m. Adjusted measures are non-statutory
(Alternative Performance Measures), and this is reconciled to the nearest
corresponding statutory measure in note 12.
First half highlights
- Group sales growth of 3.2%, with adjusted sales(2) ahead by 4.3%.
- Continued market share gains aided by ongoing investment in our
strategic initiatives. There was a strong close to the period in H1 reflecting
well executed promotions and sales incentives.
- Gross margins of 62.1% benefited from the price increase at the
start of the period, ongoing purchasing benefits and a stronger weighting of
kitchens by volume in the overall category mix in H1.
- Profit before tax of £117.2m grew 4.4%, after £11.0m investment
in strategic initiatives.
- Balance sheet remains strong with £321.4m of cash at the end of
the period.
- Increased interim dividend by 2.0% to 5.0 pence per share.
- Completed £31.8m of the previously announced £100m share buyback
programme.
- On track with the outlook for 2025.
Chief Executive Officer statement
"Howdens performed well in the first half, gaining further market share. The
ongoing investment in our strategic initiatives is strengthening our
competitive position, and our current trading performance gives us confidence
in achieving our full year plans.
"We are well prepared for the second half, which includes our seasonally
important peak trading period. This includes Howdens' best-ever line-up for
kitchens, available for 2025 in more colours, styles, and finishes to suit all
budgets. While market conditions remain challenging, our trade customers are
highly skilled at winning work in such times backed by Howdens'
well-incentivised depot teams, unrivalled product quality and industry leading
stock availability."
Andrew Livingston
Summary of the major strategic initiatives for 2025
- Open around 25 depots in the UK and reformat around 60 existing
depots. To date, we have opened 3 and completed 14 depot reformats (including
1 relocation).
- Launch more new kitchen ranges. We are planning at least 23 this
year, aimed at making more styles available at more price points. For example,
our premium kitchen offer includes a greater choice of solid worksurface
decors and a new in-frame style kitchen family called Ilfracombe which is
exclusively available in paint to order colours.
- Invest in our UK manufacturing capacity and capabilities,
including a project to upgrade our rigid cabinet and panel lines at Runcorn.
The expected costs of the line expansion and associated works are included in
our medium-term capex plans (see page 7 for more details).
- Launch new account management software to improve efficiency and
support depots in managing customer relationships. It automates time-consuming
manual tasks in depots, providing comprehensive account data for each customer
and real time overviews of accounts, leads and contacts.
- In France, we are focused on driving same depot sales through
achieving the optimal mix of kitchens and joinery products. We will enhance
the entrepreneurial skills in the depot teams to win more business as trade
customers become more familiar with the benefits of Howdens' in-stock,
trade-only model.
- The Republic of Ireland is establishing itself as a strong
competitor in our categories and this year we will open another 5 depots,
bringing the total to 18 by the end of the year.
Current trading and outlook for 2025
- Howdens delivered continued market share gains and there was a
strong close to the first half as a result of well executed promotions and
sales incentives, which landed well in UK depots.
- Our performance since the start of the second half has been in
line with our expectations. Our results are second half weighted, given
Howdens' autumn peak trading period.
- The strong progress of our strategic initiatives and current
trading performance gives us confidence that the Group is on track with the
outlook for 2025.
- The addressable value of our principal UK markets is around £11
billion. These markets are very attractive, highly fragmented and we see
significant longer-term growth opportunities for us.
- We remain focused on delivering performance ahead of our markets,
while generating strong cash flow, and attractive returns for shareholders
over the medium-term.
For further information please contact
Howden Joinery Group Plc Media Enquiries
Jackie Callaway, CFO Richard Mountain (FTI Consulting)
Tel: +44 (0) 207 535 1162 Tel: +44 (0) 20 3 727 1000
Mark Fearon, Director of IR and Communications hwdn@fticonsulting.com (mailto:hwdn@fticonsulting.com)
Mobile: +44 (0)7711 875070 - ir@howdens.com (mailto:ir@howdens.com)
Results presentation:
There will be an in-person analyst and investor presentation at 0830 (UK)
today hosted by Andrew Livingston, Howdens' CEO, and Jackie Callaway, Howdens'
CFO at:
Deutsche Numis, 45 Gresham St London EC2V 7BF, with light refreshments served
from 0800.
A live video webcast will be available on https://brrmedia.news/HWDN_HY_25
(https://brrmedia.news/HWDN_HY_25)
For more information see: www.howdenjoinerygroupplc.com
(http://www.howdenjoinerygroupplc.com) . The presentation can also be heard by
dialling the phone numbers below:
Dial in phone numbers:
UK: 0207 544 1375 USA: +1 412 317 5413
UK Toll Free: 0808 238 9064 USA Toll Free: +1 866 777 2509
Quote HOWDENS' HALF YEAR RESULTS when prompted by the operator.
The webcast will be recorded and available on our website after the event at:
www.howdenjoinerygroupplc.com (http://www.howdenjoinerygroupplc.com)
Notes to editors:
1. About Howden Joinery Group Plc
Howdens is the UK's number one trade kitchen supplier. In the UK, the company
sells kitchens and joinery products to trade customers, primarily local
builders. In 2024, the Group generated revenues of around £2.3 billion and
profit before tax of £328.1 million. Howdens is a proud UK-based
manufacturer, with a significant proportion of its kitchen and joinery
products manufactured in-house at its two principal factories in Runcorn,
Cheshire, and Howden, East Yorkshire. At the end of 2024, Howdens operated
from 869 UK depots, 65 depots in France and Belgium and 13 depots in the
Republic of Ireland.
2. Timetable for the interim dividend
The timetable for payment of the proposed final dividend is shown below. A
Dividend Reinvestment Plan ("DRIP") is provided by Equiniti Financial Services
Limited. The DRIP enables the Company's shareholders to elect to have their
cash dividend payments used to purchase the Company's shares. More information
can be found at www.shareview.co.uk/info/drip
(http://www.shareview.co.uk/info/drip) .
Ex-dividend date: 16 October 2025
Record date: 17 October 2025
Payment date: 21 November 2025
3. Provisional financial calendar
2025
Trading update 6 November 2025
End of financial year 27 December 2025
2026
2025 full year results 26 February 2026
Financial review
Financial results for H1 2025
Revenue £m (unless stated) H1 2025 H1 2024 Change # depots at period end
UK - same depot basis(1) 948.9 932.9 +1.7% 840
- depots opened in previous two years 12.9 0.8 31
961.8 933.7 +3.0% 871
International(2) 35.8 32.6 +9.8% 77
Group 997.6 966.3 +3.2% 948
International revenue in local currency H1 2025 H1 2024 Change # depots at period end
€m (unless stated)
- same depot basis(1) 41.3 37.7 +9.5% 73
- depots opened in previous two years 1.3 0.3 4
42.6 38.0 +12.1% 77
(1) Same depot basis for any year excludes depots opened in that year and the
prior year. Adjusted measures are non-statutory
(Alternative Performance Measures), and this is reconciled to the nearest
corresponding statutory measure in note 12.
(2) The International segment comprises Howdens' depots in France, Belgium and
the Republic of Ireland.
Group revenue of £997.6m was 3.2% ahead of the prior year (2024: £966.3m)
and 4.3% ahead adjusting for the two fewer trading days in H1 2025 versus the
prior year. UK depot revenue grew 3.0% to £961.8m (2024: £933.7m). Revenue
was 1.7% ahead of the prior year on a same depot basis(2) at £948.9m (2024:
£932.9m); this excludes the additional revenue from depots opened in 2025 and
2024 of £12.9m (2024: £0.8m). There was a strong close to the first half as
a result of well executed UK depot promotions and sales incentives.
On a local currency basis, the international depots grew revenue by 12.1% to
€42.6m (2024: €38.0m) which was 9.5% ahead of the prior year on a same
depot basis(2). Adjusting for the impact of foreign exchange translation,
reported revenue was 9.8% ahead at £35.8m (2024: £32.6m).
Gross profit
Gross profit of £619.6m (2024: £587.3m) was ahead of the prior year as a
result of the price increase at the start of the period, purchasing benefits
in the cost base and a stronger mix towards kitchens. The gross margin was 130
basis points ahead at 62.1% (2024: 60.8%).
Operating profit
Operating profit of £121.4m was 3.6% ahead of last year (2024: £117.2m) and
the operating profit margin was 12.2% (2024: 12.1%). Our operating expenses
increased by 6.0% to £498.2m (2024: £470.1m) which was predominantly as a
result of £11m of planned investment in our strategic initiatives. In
addition, higher labour costs included National Insurance and the National
Minimum Wage cost rises from April, the annualised impact of which is expected
to be £18m. We have continued to invest in new depots and reformats, range
optimisation, and expanding our digital platforms to support our trade
customers.
Profit before and after tax
The net interest charge was £4.2m (2024: £4.9m). As a result, profit before
tax of £117.2m was 4.4% ahead of the prior year (2024: £112.3m). The tax
charge on profit before tax was £27.6m (2024: £27.9m) and represented an
effective tax rate of 23.5% (2024: 24.8%). As a result, profit after tax was
£89.6m (2024: £84.4m). Basic earnings per share were 16.4p (2024: 15.4p) an
increase of 6.5%.
Cash
The net cash inflow from operating activities was £204.3m (2024: £189.5m).
Net working capital increased by £13.9m in line with normal seasonal phasing.
Receivables at the end of the period were £7m higher than at the beginning of
the period. Payables were £20m higher and inventory was £26m higher, due to
the normal stock build ahead of the peak trading period in the second half.
Capital expenditure was £42.8m (2024: £40.1m) as we continued to invest in
the execution of our strategic initiatives to support growth. Corporation tax
payments were £15.7m (2024: £39.2m), as we offset tax benefits receivable
due to the Patent Box. Dividends amounted to £89.5m (2024: £89.0m) with a
further cash outflow of £30.5m relating to the share buyback programme (2024:
nil). The interest and principal paid on lease liabilities totalled £40.7m
(2024: £38.2m).
As a result, there was a net cash outflow of £21.9m (2024: outflow of
£118.5m), leaving the Group with cash at the period end of £321.4m (14 June
2024: £165.5m). The Group has in place a £150m multi-currency, revolving
credit facility which remained undrawn at the balance sheet date.
Capital allocation and returns to shareholders
Our approach to capital allocation continues to focus on achieving sustainable
profit growth by investing in and developing our differentiated business. We
also want to maintain a progressive and sustainable ordinary dividend to
reward shareholders with an attractive ongoing income stream. Within its
definition of surplus capital, the Board's objective is for the Group to be
able to operate through the annual working capital cycle without incurring
bank debt, noting that there is seasonality in working capital balances
through the year, particularly in advance of our peak trading period in the
second half. We also take into account that the Group has a significant
property lease exposure for the depot network, and a large defined benefit
pension scheme.
After allowing for these uses of cash, Howdens remains committed to returning
any surplus capital to shareholders. Our capital allocation policy is that
when year-end cash is more than £250m we expect to return surplus cash to
shareholders. This provides sufficient headroom to support organic growth, our
working capital requirements and ongoing investments in our strategic
priorities. At this level of cash, the balance sheet will remain strong. As
indicated at the year end, we are undertaking a £100m share buyback programme
and we have bought back £31.8m in the period. The interim dividend for 2025
of 5.0p per ordinary share (2024: 4.9p per share) represents an increase of
2.0% and will be paid on 21 November 2025 to shareholders on the register on
17 October 2025.
Pensions
On 14 June 2025, the defined benefit pension scheme had a deficit of £12.4m
(15 June 2024: surplus of £20.7m) on an IAS 19 basis. The scheme was closed
for future accrual on 31 March 2021 and there were no contributions to the
scheme in the period. The Company has recently agreed a variation to the
approach on ongoing deficit reduction contributions whereby previously
payments would switch on/ switch off should the funding level fall below/ rise
above 100% on the technical provisions basis. This has been updated to
introduce 'tram-lines', where contributions switch on if the funding falls
below 98% and switch off if the funding level is above 102%. This is to avoid
a cycle of switching contributions on and off when the funding level is
fluctuating around 100%. The agreed contribution rate remains at £1m a month.
Operational review
Strategic initiatives
Howdens has made good progress on its strategic initiatives, which are aimed
at achieving profitable growth and market share gains over the medium-term.
The four strategic initiatives are:
1. Evolving our depot model by using space more efficiently to provide
the best environment in which to do business with our customers.
2. Improving our range and supply management to improve choice and
service while enhancing productivity in our manufacturing, sourcing and supply
chain activities.
3. Developing our digital platforms to raise brand awareness, support
the business model and to deliver productivity gains and more leads for depots
and customers.
4. Expanding our international presence in selective countries with
attractive kitchen and joinery markets.
These ongoing investments support the execution of our growth strategy and are
within our overall capital expenditure guidance. Progress on each of these
initiatives is reviewed below:
Evolving our depot model
Since the start of the year, we have opened three new depots of the additional
c.25 new depots we are planning to open in the UK in 2025. We are opening all
new depots in our updated format and we see scope for around 1,000 depots in
the UK.
We have also continued with our reformatting programme for existing UK depots.
Depot reformats have a payback of around four years and the programme is
delivering incremental sales. In the first half, we reformatted 14 depots,
including one relocation, and we plan to reformat c.60 depots (including
relocations) in 2025. By the end of 2025, we expect to have reformatted around
61% of all depots now trading which were opened in the old format.
Improving our product range and supply management
Range investment
Howdens has accelerated its pace of new product introductions in recent years
to consolidate its leading position in the sector. Excluding paint to order
kitchens, we have launched 22 new kitchens so far this year, well ahead of our
peak trading period in the autumn.
This year, we have introduced 13 new kitchens within our established entry and
mid-level families. For entry-level, this includes Greenwich in Gloss Reed
Green and Porcelain, and Allendale in Pebble. In our versatile mid-priced
Clerkenwell family, popular across both lower and higher value orders, we have
added eight new colours, including market-leading metallic bronze and titanium
options. We have also launched Frome, a new kitchen family designed to
complement the styling of our long-standing Chelford family.
Our premium kitchen portfolio, which addresses a significant market segment
often associated with high street independents, continues to grow. For our
contemporary Hockley family, we have introduced five new colours, including
Reed Green and Textured Dark Oak. Meanwhile, demand for our paint to order
service continues to increase. This year's new timber kitchens offer
exceptional value, and the number of our Chilcomb and Elmbridge kitchens sold
in premium priced paint to order colours has increased significantly. We have
also expanded our timber kitchen offering with the launch of Ilfracombe, an
in-frame kitchen of classic design, which is positioned above Chilcomb and
Elmbridge. Ilfracombe is exclusively available in 24 paint to order colours.
Solid surface worktops remain a strong growth area for the Group, particularly
in the premium kitchen segments and we have one of the largest in-house
manufacturing capacities in the UK.
Sales in the first half were ahead of the prior year and ahead of peak autumn
trading we will have 60 worktop decors available. In other categories, we are
enhancing our range with both third-party branded products and our own
in-house brands. In doors, we are introducing more colours and bolder styles
at every price point. In appliances, we have expanded our market-leading
Lamona brand and extended our third-party offerings. In sinks and taps, we now
offer more styles, colours, and finishes. Our own-label flooring brand, Oake
& Gray, launched in 2023, now accounts for a substantial share of category
sales. This year's additions include innovative water-resistant laminates and
refreshed entry-level decors. Feedback on our latest own-label ironmongery
brand, Fuller and Forge, has been very positive. Featuring a wide variety of
door furniture designs, finishes, and styles, it significantly strengthens our
presence in a category where we were previously under-represented. We are also
expanding our successful bedroom ranges to suit more styles and budgets.
Manufacturing and supply chain
Howdens is an in-stock business, and our trade customers tell us that a high
level of stock availability is one of the key reasons they buy from us. Our
XDC network, which enables us to offer a next day delivery service, and other
recent initiatives, including "Daily Traders" facilitate exceptional service
levels. For the first half of this year, our service level from our primary
distribution locations to depots was 99.99%, and we are confident that this is
unrivalled in the market. Our in-house manufacturing capability is a source of
competitive advantage for us, and we keep under review what we believe is best
to make or buy, balancing cost and overall supply chain availability,
resilience and flexibility. Recent investments have strengthened our
competitive position by increasing our capacity and by adding broader and new
capabilities. Recent initiatives include a new kitchen furniture line at
Howden, expanded manufacturing capacity at both our solid worksurface sites,
and a purpose-built facility for paint-to-order kitchens.
Cabinet and panel manufacturing underpins our kitchen offering, which
constitutes the principal source of group sales and a higher proportion of
gross profit. Our Runcorn factory with its high-volume, low-cost panel making
capability has always been an integral part of our manufacturing and logistics
strategy. In line with our longer-term ambitions for the business, we are
developing the site expand our production capacity, broaden our capabilities
and to drive further operating efficiencies. Our plan for the site involves:
- Installing a new high volume panel machining line to replace the
existing one together with an automated WIP solution to manage storage and
dispatch to rigid assembly.
- Building two extensions to the existing building to house the new
panel machining equipment and to increase significantly on-site warehousing
capacity.
- Separately, our plans to acquire the freehold of the site are
progressing well.
- Once work on the site commences, we expect the project would take
around three years to complete.
- Excluding the freehold purchase, the expected capital costs of
delivering the site upgrades are within our medium-term capex plans.
Developing our digital platform
We use digital to reinforce our model of strong local relationships between
depots and their customers, raising brand awareness to support the business
model with new services and ways to trade with us, and to deliver productivity
benefits and more leads for our depot teams and our customers.
Usage of our online account facilities, which provide efficiencies and
benefits for customers and depots alike, has continued to increase. New
registrations totalled 44,000 and nearly 60% of customers had an on-line
account at the half year-end. Across the leading social media channels, our
follower base at c.687,000 was up 13%, with around 6.2 million engagements a
month. Usage of our upgraded "Click and Collect" service, which is available
for our everyday products, has increased significantly so far this year.
Online account customers can check real time availability of stock on a
depot-by-depot basis. This year, amongst other initiatives, we are supporting
depots in the management of their customer relationships by making our depot
account management tools more efficient and productive.
A new account management tool captures information from multiple sources and
makes it accessible via a single dashboard. The software enables automation of
time-consuming manual tasks in depots, provides comprehensive account data for
each customer and real time overviews of accounts, leads and contacts. The
system is now operating in all UK depots, well ahead of peak autumn trading.
Developing our international operations
France continued to grow sales momentum in the first half. After a period of
significant expansion of the depot network in 2022, it continues to respond
positively to the measures taken to improve existing depot sales performance.
Our new, experienced, senior leadership team are focused on depot team
development, with enhanced offerings of "footfall promoting" products,
alongside other initiatives. This year the focus is on building out our depot
teams' capabilities, particularly account management, as we look to build on
the progress made. We expect to maintain the number of depots trading at
around 65 for the time being.
Sales in the Republic of Ireland were well ahead of last year, and we are
opening more depots there in 2025. The local market suits our differentiated
model, which sets us apart from the competition. The local team is supported
by our UK infrastructure and our digital platform and by the end of 2024 we
had opened 13 depots, including eight clustered around Dublin and three
serving Cork. Since the end of the period we have added one new depot serving
Naas, to the south west of Dublin. In total, we expect open 5 depots in 2025.
Technical guidance for H2 2025
Income statement
- The expected annualised cost impact of higher contributions to
employers' National Insurance and the increase in the National Minimum Wage,
which came into effect in April 2025 is around £18m.
- Foreign exchange sensitivity in COGS of Euro: +/- €0.01 =
£1.8m; US Dollar: +/- $0.01 = £0.8m.
- H1 2025 had two fewer trading days than the prior year and by the
year end there will be one fewer trading day compared with the prior year.
- Full year effective tax rate is expected to be around 24% due to
increased Patent Box benefit.
Cashflow
- Capital expenditure is anticipated at around £125m including
investments to support future growth.
- The purchase of the freehold of the Runcorn site is expected to
complete in the second half. This is not included in current capex guidance.
- We will complete the share buy back in the second half.
Environment, social and governance (ESG)
With continuous improvements driving our reduction in emissions for over 20
years, we remain focused on being the largest and lowest cost kitchen
manufacturer in the most sustainable way. Our publicly committed Net Zero plan
was approved by SBTi in January 2024. Our Plan commits us to reducing our
Scope 1 & 2 emissions by 42% and our Scope 3 supply chain emissions by 25%
by 2030 and targeting Net Zero by 2050 against a baseline year of 2021.
We are pleased to report continued strong progress across all areas of our
sustainability agenda. Operationally, we have maintained
zero-waste-to-landfill across all manufacturing and depot sites, integrated
advanced waste systems, and achieved the Carbon Trust Route to Net Zero
Standard. Our decarbonisation efforts include large-scale solar installations,
100% renewable energy sourcing, and significant fleet emissions reductions
through HVO, LNG, and electric vehicles. Supplier engagement on Scope 3
emissions is advancing, with verified data collection and alignment to our
targets. Product innovation remains focused on sustainability, with increased
recycled content, reduced plastic use, and certified timber sourcing. Our Net
Zero Plan is embedded across the business, supported by robust governance and
third-party assurance.
Going Concern
The directors have adopted the going concern basis in preparing these
half-yearly condensed financial statements and have concluded that there are
no material uncertainties leading to significant doubt about the Group's going
concern status. The reasons for this are explained below.
Going concern review period
This going concern review period covers the period of at least 12 months after
the date of approval of these condensed financial statements. The directors
consider that this period continues to be suitable for the Group as it is the
period for which the Group prepares the most frequently revised forecasts, and
which is most regularly scrutinised by the Executive Committee and Board.
Assessment of principal risks
The directors have reached their conclusion on going concern after assessing
the Group's principal risks, as set out immediately below this going concern
statement. Whilst all the principal risks could have an impact on the Group's
performance, the specific risks which could most directly affect going concern
are the risks relating to continuity of supply, changes in market conditions,
and product relevance. The Group is currently holding adequate amounts of
fast-moving inventory as a specific mitigation against supply chain disruption
and considers that the other effects of these risks would be reflected in
lower sales and/or lower margins, both of which are built into the financial
scenario modelling described below.
Review of trading results, future trading forecasts and financial scenario modelling
The directors have reviewed trading results and financial performance in the
first half of 2025, as well as trading in the weeks between the half-year end
and the date of approval of the half-year results. They have reviewed the
Group's balance sheet at the half-year end, noting that the Group is
debt-free, has cash and cash equivalents of £321m, and appropriate levels of
working capital.
They have also considered three financial modelling scenarios prepared by
management:
1) A "base case" scenario. This is based on the latest 2025 Group forecast,
made in June 2025. The basis of this scenario has been approved by the Board.
This scenario assumes future revenue and profit in line with management and
market expectations as well as investments in capital expenditure and cash
outflows for dividends and share buybacks in accordance with our announced
capital allocation model.
2) A "severe but plausible" downside scenario. This is based on the worst
12-month year-on-year actual fall ever experienced in the Group's history. For
additional context, this is more significant than the combined effect of COVID
and Brexit on 2020 actual performance.
This scenario models a reduction in most of the variable cost base
proportionate to the reduction in turnover. It includes capital expenditure at
a lower level than in the base case, but which is still in line with our
announced strategic priorities for growth, namely: new depot openings and
refurbishments; investment in our manufacturing sites, investment in digital
and expanding our international operations. It also includes dividends and
share buybacks in line with the Group's stated capital allocation model.
In this scenario the Board considered the current economic conditions that the
company and its customers are facing and noted that the downside scenario
included allowances for reduced demand and increased costs to reflect such
adverse conditions.
3) A "reverse stress-test" scenario. This scenario starts with the severe
but plausible downside model and reduces sales even further, to find the
maximum reduction in sales that could occur with the Group still having
headroom over the whole going concern period, without the need to take further
mitigating actions. This involves modelling a reduction in sales to the
maximum level before any lending covenants are breached or there is no
headroom.
Capital expenditure in this scenario has been reduced to a "maintenance"
level. Variable costs have been reduced in proportion to the reduction in
turnover on the same basis as described in the severe but plausible downside
scenario. It assumes no dividends or share buybacks.
Borrowing facility and covenants
The Group has a multi-currency revolving credit facility of up to £150m which
expires in September 2029, and which was not drawn at any point in the
half-year. A summary of the main terms of the facility is set out in note 19
to the December 2024 Group financial statements.
As part of the scenario modelling described above, we have tested the
borrowing facility covenants and the facility remains available under all of
the scenarios. We have therefore included the credit available under the
facility in our assessment of headroom.
Results of scenario modelling
In the base case and the severe but plausible downside scenarios, the Group
has significant headroom throughout the going concern period after meeting its
commitments.
In the reverse stress-test scenario, the results show that sales would have to
fall by a significant amount over and above the fall modelled in the severe
but plausible downside scenario before the Group would have to take further
mitigating actions. The likelihood of this level of fall in sales is
considered to be remote.
Conclusion
Taking all the factors above into account, the directors believe that the
Group is well placed to manage its financing and other business risks
satisfactorily and they have a reasonable expectation that the Group will have
adequate resources to continue in operational existence for the going concern
review period set out above. Accordingly, they continue to adopt the going
concern basis in preparing these half-yearly condensed financial statements.
Principal risks and uncertainties
The principal risks and uncertainties that could have a material impact on the
Group's performance over the remaining half of the financial year have not
changed from those which are set out in detail in the Group's 2024 Annual
Report & Accounts.
1. Market conditions - Challenging market conditions
could affect our ability to achieve sales and profit forecasts, impacting on
our cash position. Exchange rates fluctuation could increase our cost of
goods sold.
2. Cyber security - Events such as ransomware attacks
continue to rise globally. A major security breach could cause a key system
to be unavailable and/or sensitive data to be compromised.
3. People - Our operations could be adversely affected
if we were unable to attract, retain and develop our colleagues; or, if we
lost a key member of our team without succession.
4. Maximising growth - if we do not understand and
exploit our growth opportunities in line with our business model and risk
appetite, or if we do not meet the related challenges, we will not get maximum
benefit from our growth potential.
5. Supply chain - Any disruption to our relationship
with key suppliers or interruption to manufacturing and distribution
operations could affect our ability to deliver the in-stock business model and
to service our customer's needs. If this happened, we could lose customers and
sales. The impact of global tariffs has a limited short-term impact to
Howdens, however a protracted trade war could potentially impact on wider
market conditions.
6. Business model and culture - if we lose sight of our
model and culture during challenging market conditions, we may not serve our
customers successfully and our long-term profitability may suffer.
7. Health and Safety - Poor management or an incident
could compromise the safety and wellbeing of individuals, and the reputation
and viability of the business.
8. Product - If we do not offer the builder the products
that they and their customers want, we could lose sales and customers.
9. Business continuity and resilience - We have some
business operations and locations in our infrastructure that are critical to
business continuity and are essential for ensuring our customers can get the
product and services they want when they need them.
Cautionary statement
Certain statements in this Half Year results announcement are forward-looking.
Although the Group believes that the expectations reflected in these
forward-looking statements are reasonable, we can give no assurance that these
expectations will prove to have been correct. Because these statements contain
risks and uncertainties, actual results may differ materially from those
expressed or implied by these forward-looking statements. We undertake no
obligation to update any forward-looking statements whether as a result of new
information, future events or otherwise.
Responsibility statement
We confirm that, to the best of our knowledge:
(a) the condensed consolidated set of financial statements has been prepared
in accordance with IAS 34 'Interim Financial Reporting';
(b) the interim management report includes a fair review of the information
required by DTR 4.2.7R
(indication of important events during the first 24 weeks and description of
principal risks and uncertainties for the remaining 28 weeks of the year); and
(c) the interim management report includes a fair review of the
information required by DTR 4.2.8R
(disclosure of related parties' transactions and changes therein).
The directors are responsible for the maintenance and integrity of the
corporate and financial information included in the company's website.
Legislation in the United Kingdom governing the preparation and dissemination
of financial information differs from legislation in other jurisdictions.
By order of the Board
Andrew Livingston Jackie Callaway
Chief Executive Officer Chief Financial Officer
23 July 2025
Independent Review Report to Howden Joinery Group plc
Conclusion
We have been engaged by Howden Joinery Group Plc ("the Company") to review the
condensed set of financial statements in the half-yearly financial report for
the 24 weeks ended 14 June 2025 which comprises the condensed consolidated
balance sheet, condensed consolidated income statement, condensed consolidated
statement of comprehensive income, condensed consolidated statement of changes
in equity and condensed consolidated cash flow statement and the related
explanatory notes.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the 24 weeks ended 14 June 2025 is not prepared, in all
material respects, in accordance with IAS 34 Interim Financial Reporting as
adopted for use in the UK and the Disclosure Guidance and Transparency Rules
("the DTR") of the UK's Financial Conduct Authority ("the UK FCA").
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 Review of Interim Financial Information Performed by the
Independent Auditor of the Entity ("ISRE (UK) 2410") issued for use in the
UK. A review of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. We read the other
information contained in the half-yearly financial report and consider whether
it contains any apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an
audit opinion.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention that causes us to believe that the directors
have inappropriately adopted the going concern basis of accounting, or that
the directors have identified material uncertainties relating to going concern
that have not been appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410. However, future events or conditions may cause the Group to
cease to continue as a going concern, and the above conclusions are not a
guarantee that the Group will continue in operation.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing the
half-yearly financial report in accordance with the DTR of the UK FCA.
As disclosed in note 2, the annual financial statements of the Group are
prepared in accordance with UK-adopted international accounting standards.
The directors are responsible for preparing the condensed set of financial
statements included in the half-yearly financial report in accordance with IAS
34 as adopted for use in the UK.
In preparing the condensed set of financial statements, the directors are
responsible for assessing the Group's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to
liquidate the Group or to cease operations, or have no realistic alternative
but to do so.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review. Our conclusion, including our conclusions relating to going concern,
are based on procedures that are less extensive than audit procedures, as
described in the Basis for conclusion section of this report.
The purpose of our review work and to whom we owe our responsibilities
This report is made solely to the Company in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the DTR of the
UK FCA. Our review has been undertaken so that we might state to the Company
those matters we are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company for our review work, for this
report, or for the conclusions we have reached.
Zulfikar Walji
for and on behalf of KPMG LLP
Chartered Accountants
15 Canada Square
London
E14 5GL
23 July 2025
Condensed consolidated income statement
Note 24 weeks to 24 weeks to 52 weeks to 28 December 2024
14 June 2025
15 June 2024
unaudited
unaudited audited
£m £m £m
Continuing operations:
Revenue 4 997.6 966.3 2,322.1
Cost of sales (378.0) (379.0) (891.0)
Gross profit 619.6 587.3 1,431.1
Operating expenses (498.2) (470.1) (1,091.9)
Operating profit 121.4 117.2 339.2
Finance income 7 6.3 4.3 9.9
Finance costs 7 (10.5) (9.2) (21.0)
Profit before tax 117.2 112.3 328.1
Tax on profit 6 (27.6) (27.9) (78.8)
Profit for the period attributable to the equity holders of the parent 89.6 84.4 249.3
Earnings per share pence pence pence
Basic earnings per 10p share 8 16.4 15.4 45.6
Diluted earnings per 10p share 8 16.3 15.4 45.4
Condensed consolidated statement of comprehensive income
Note 24 weeks to 24 weeks to 52 weeks to 28 December 2024
14 June 2025
15 June 2024
unaudited
unaudited audited
£m £m £m
Profit for the period 89.6 84.4 249.3
Items of other comprehensive income:
Items that will not be reclassified subsequently to profit or loss:
Actuarial (losses)/gains on defined benefit pension plan 11 (9.7) 34.3 12.7
Deferred tax on actuarial gains and losses on defined benefit pension scheme 2.4 (8.6) (3.2)
Items that may be reclassified subsequently to profit or loss:
Currency translation differences 1.1 (1.5) (3.1)
Other comprehensive income for the period (6.2) 24.2 6.4
Total comprehensive income for the period, attributable to equity holders of 83.4 108.6 255.7
the parent
Condensed consolidated balance sheet
Note 14 June 2025 15 June 2024 28 December 2024
unaudited unaudited audited
£m £m £m
Non-current assets
Intangible assets 60.5 48.6 58.1
Property, plant and equipment 10 499.6 460.2 500.6
Lease right-of-use assets 647.0 638.4 642.3
Pension asset 11 - 20.7 -
Deferred tax asset 14.2 6.4 10.5
Long term prepayments 1.1 0.6 1.4
1,222.4 1,174.9 1,212.9
Current assets
Inventories 416.8 410.1 390.7
Corporation tax 18.2 56.7 25.7
Trade and other receivables 271.4 256.3 264.6
Cash and cash equivalents 321.4 165.5 343.6
1,027.8 888.6 1,024.6
Total assets 2,250.2 2,063.5 2,237.5
Current liabilities
Lease liabilities (93.8) (87.6) (89.3)
Trade and other payables (413.7) (350.8) (386.8)
Provisions (8.1) (8.5) (8.3)
(515.6) (446.9) (484.4)
Non-current liabilities
Pension liability 11 (12.4) - (2.1)
Lease liabilities (607.1) (602.7) (591.7)
Deferred tax liability (31.6) (8.5) (26.4)
Provisions (3.9) (4.3) (4.2)
(655.0) (615.5) (624.4)
Total liabilities (1,170.6) (1,062.4) (1,108.8)
Net assets 1,079.6 1,001.1 1,128.7
Equity
Share capital 55.0 55.4 55.4
Capital redemption reserve 10.2 9.8 9.8
Share premium 87.5 87.5 87.5
ESOP and share-based payments 24.4 15.6 21.3
Treasury shares (15.5) (19.9) (18.8)
Retained earnings 918.0 852.7 973.5
Total equity 1,079.6 1,001.1 1,128.7
Condensed consolidated statement of changes in equity
24 weeks to 14 June 2025 Share capital Capital redemption reserve Share premium account ESOP and share-based payments Treasury shares Retained earnings Total
£m £m £m £m £m £m £m
As at 28 December 2024 - audited 55.4 9.8 87.5 21.3 (18.8) 973.5 1,128.7
Profit for the period - - - - - 89.6 89.6
Other comprehensive income in the period - - - - - (6.2) (6.2)
Total comprehensive income for the period - - - - - 83.4 83.4
Deferred tax on share schemes - - - - - 0.6 0.6
Movement in ESOP - - - 6.4 - - 6.4
Buyback and cancellation of shares (0.4) 0.4 - - - (50.0) (50.0)
Transfer of shares from treasury into share trust - - - (3.3) 3.3 - -
Dividends - - - - - (89.5) (89.5)
As at 14 June 2025 - unaudited 55.0 10.2 87.5 24.4 (15.5) 918.0 1,079.6
The £50.0m charged to retained earnings relating to buyback and cancellation
of shares during the period includes an amount of £18.2m which is contained
in the balance sheet caption Trade and other creditors, and which reflects
contractual obligations to purchase ordinary shares. During the period,
3,996,990 shares, with a cost of £31.8m including fees, were purchased and
cancelled. Because some of these shares were purchased in the final days of
the period, the cash outflow on payments to acquire own shares during the
period was £30.5m.
The item "Movement in ESOP" consists of the share-based payment charge in the
period, together with any receipts of cash from employees on exercise of share
options.
At the current period end there were 3.2 million ordinary shares held in
treasury, each with a nominal value of 10p (June 2024: 4.1 million shares,
December 2024: 3.8 million shares).
The company's share capital consists of 10p ordinary shares. The company
bought back and cancelled 3,996,990 shares during the period (period to June
2024 and period to December 2024: no shares bought back and cancelled).
Condensed consolidated statement of changes in equity - continued
24 weeks to 15 June 2024 Share capital Capital redemption reserve Share premium account ESOP and share-based payments Treasury shares Retained earnings TOTAL
£m £m £m £m £m £m £m
At 30 December 2023 - audited 55.4 9.8 87.5 16.6 (24.0) 833.1 978.4
Profit for the period - - - - - 84.4 84.4
Other comprehensive income in the period - - - - - 24.2 24.2
Total comprehensive income for the period - - - - - 108.6 108.6
Movement in ESOP - - - 3.1 - - 3.1
Transfer of shares from treasury into share trust - - - (4.1) 4.1 - -
Dividends - - - - - (89.0) (89.0)
As at 15 June 2024 - unaudited 55.4 9.8 87.5 15.6 (19.9) 852.7 1,001.1
52 weeks to 28 December 2024 Share capital Capital redemption reserve Share premium account ESOP and share-based payments Treasury shares Retained earnings TOTAL
£m £m £m £m £m £m £m
At 30 December 2023 - audited 55.4 9.8 87.5 16.6 (24.0) 833.1 978.4
Profit for the period - - - - - 249.3 249.3
Other comprehensive income for the period - - - - - 6.4 6.4
Total comprehensive income for the period - - - - - 255.7 255.7
Current tax on share schemes - - - - - 0.5 0.5
Deferred tax on share schemes - - - - - 0.1 0.1
Movement in ESOP - - - 9.9 - - 9.9
Transfer of shares from treasury into share trust - - - (5.2) 5.2 - -
Dividends - - - - - (115.9) (115.9)
At 28 December 2024 - audited 55.4 9.8 87.5 21.3 (18.8) 973.5 1,128.7
Condensed consolidated cash flow statement
Note 24 weeks to 24 weeks to 52 weeks to 28 December 2024
14 June 2025
15 June 2024
audited
unaudited unaudited
£m
£m £m(1)
Profit before tax 117.2 112.3 328.1
Adjustments for:
Finance income (6.3) (4.3) (9.9)
Finance costs 10.5 9.2 21.0
Depreciation and amortisation of owned assets 29.4 24.8 57.1
Depreciation, impairment and loss on termination of leased assets 45.8 43.8 97.0
Share-based payments charge 6.4 2.7 9.6
Decrease/(increase) in long term prepayments 0.3 0.1 (0.6)
Diff. between pension operating charge and cash paid 0.6 0.9 1.9
(Profit)/loss on disposal of property, plant and equipment and intangible 0.4 - 0.4
assets
Operating cash flows before movements in working capital 204.3 189.5 504.6
Movements in working capital
(Increase) in inventories (26.1) (27.3) (7.9)
(Increase) in trade and other receivables (7.4) (62.3) (70.1)
Increase /(decrease) in trade and other payables and provisions 19.6 (17.1) 12.7
(13.9) (106.7) (65.3)
Cash generated from operations 190.4 82.8 439.3
Tax paid (15.7) (39.2) (39.2)
Net cash flows from operating activities 174.7 43.6 400.1
Cash flows used in investing activities
Payments to acquire property, plant and equipment and intangible assets (42.8) (40.1) (122.0)
Receipts from sale of property, plant and equipment and intangible assets - - 0.1
Interest received 6.9 4.8 9.8
Net cash used in investing activities (35.9) (35.3) (112.1)
Cash flows from financing activities
Payments to acquire own shares (30.5) - -
Receipts from release of shares from share trust - 0.4 0.4
Dividends paid to Group shareholders 9 (89.5) (89.0) (115.9)
Repayment of capital on lease liabilities (30.2) (29.1) (92.7)
Interest paid - including on lease liabilities (10.5) (9.1) (20.7)
Net cash used in financing activities (160.7) (126.8) (228.9)
Net decrease in cash and cash equivalents (21.9) (118.5) 59.1
Cash and cash equivalents at beginning of period 343.6 282.8 282.8
Effect of exchange rate fluctuations on cash held (0.3) 1.2 1.7
Cash and cash equivalents at end of period 321.4 165.5 343.6
Notes to the condensed financial statements
1 General information
The results for the 24 week periods ended 14 June 2025 and 15 June 2024 are
unaudited but have been reviewed by the Group's auditor, whose report on the
current period forms part of this document. The information for the 52 week
period ended 28 December 2024 does not constitute statutory accounts as
defined in section 434 of the Companies Act 2006. A copy of the statutory
accounts for that period has been delivered to the Registrar of Companies, and
is available via the Group's website at www.howdenjoinerygroupplc.com. The
auditor's report on those accounts was not qualified or modified, did not draw
attention to any matters by way of emphasis, and did not contain statements
under section 498(2) or (3) of the Companies Act 2006.
2 Accounting policies and basis of preparation
The condensed consolidated set of financial statements included in this
half-yearly report has been prepared in accordance with International
Accounting Standard 34 "Interim Financial Reporting", as adopted for use in
the UK.
Basis of preparation
These condensed consolidated financial statements are prepared on the going
concern basis, as we explain in detail in the "Going Concern" section of the
interim management report, above. The Group's business activities, together
with the factors likely to affect its future development, performance, and
position are set out in the interim management report, which precedes these
condensed consolidated financial statements and includes a summary of the
Group's financial position, its cash flows, and borrowing facilities, its
principal risks, and a discussion of why the directors consider that the going
concern basis is appropriate.
The annual financial statements of the Group for the 52 weeks ended 27
December 2025 will be prepared in accordance with UK-adopted international
accounting standards. This condensed set of financial statements has been
prepared applying the accounting policies, methods of computation, and
presentation that were applied in the preparation of the company's published
consolidated financial statements for the 52 weeks ended 28 December 2024
which were prepared in accordance with UK-adopted international accounting
standards, except that the taxation charge for the half-year is calculated
by applying the annual estimated effective tax rate to the profit for the
period.
3 Segmental results
Basis of segmentation
Information reported to the Group's Executive Committee, which is regarded as
the chief operating decision maker, is focused on one operating segment,
Howden Joinery. The information required in respect of segmental disclosure
can all be found in the condensed consolidated income statement and condensed
consolidated balance sheet.
4 Seasonality of revenue
In a typical year, Howden Joinery sales are more heavily weighted to the
second half of the financial year. This partly reflects the fact that there
are 24 weeks in the first half of the financial year and 28 weeks in the
second half. It also reflects that our peak trading period falls in the
second half of the year. Historically, the typical trend has been that
approximately 60% of sales have been in the second half of the year.
5 Write down of inventories
During the period, the Group has recognised a net charge of £0.8m in respect
of writing inventories down to their net realisable value (24 weeks to 15 June
2024 - net charge of £0.5m; 52 weeks to 28 December 2024 - net charge of
£1.5m).
6 Tax
The half year effective tax rate is 23.5% (24 weeks to 15 June 2024: 24.8%).
This is arrived at by applying the estimated full year effective tax rate to
the actual half year profit, after adjusting for the tax effect of items which
are recognised entirely in the current period and are not spread over the full
year (such as actual share option exercises and payments to the pension
scheme).
7 Finance income and finance costs
Finance income 24 weeks to 24 weeks to 52 weeks to 28 December 2024
14 June 2025
15 June 2024
£m
£m £m
Bank interest 6.3 4.3 9.9
Total finance income 6.3 4.3 9.9
Finance costs 24 weeks to 24 weeks to 52 weeks to 28 December 2024
14 June 2025
15 June 2024
£m
£m £m
Interest expense on lease liabilities (10.5) (9.1) (20.7)
Other finance expense - pensions - (0.1) (0.3)
Total finance costs (10.5) (9.2) (21.0)
8 Earnings per share
24 weeks to 14 June 2025 24 weeks to 15 June 2024 52 weeks to 28 December 2024
Earnings Weighted average Earnings per share Earnings Weighted average number Earnings Earnings Weighted average number Earnings
£m number p £m of shares per share £m of shares per share
of shares m p m p
m
Basic earnings per share 89.6 546.5 16.4 84.4 546.6 15.4 249.3 546.7 45.6
Effect of dilutive share options - 1.9 (0.1) - 2.2 - - 2.1 (0.2)
Diluted earnings per share 89.6 548.4 16.3 84.4 548.8 15.4 249.3 548.8 45.4
9 Dividends
(a) Amounts recognised as distributions to equity holders in the period
24 weeks to 24 weeks to 52 weeks to
14 June
15 June
28 December 2024
2025 2024 £m
£m £m
Final dividend for the 53 weeks - 89.0 89.0
to 30 December 2023 - 16.2p/share
Interim dividend for the 52 weeks - - 26.9
to 28 December 2024 - 4.9p/share
Final dividend for the 52 weeks 89.5 - -
to 28 December 2024 - (16.3p/share)
89.5 89.0 115.9
(b) Dividends proposed at the end of the period (but not recognised in the period):
On 23 July 2025, the Board approved the payment of an interim dividend of
5.0p/share to be paid on 21 November 2025 to ordinary shareholders on the
register on 17 October 2025.
24 weeks to
14 June
2025
£m
Declared interim dividend for the 52 weeks to 27 December 2025 - 5.0p/share 27.2
10 Property, plant and equipment
Additions to property, plant and equipment ("PPE") are shown below, together
with additions to intangible assets and also the actual cash outflow on
purchasing PPE and intangible assets.
24 weeks to 24 weeks to 52 weeks to
14 June
15 June
28 December 2024
2025 2024 £m
£m £m
Additions to PPE 24.7 26.2 96.9
Additions to intangible assets 5.6 7.9 20.6
30.3 34.1 117.5
Cash outflow on purchase of PPE 35.6 36.4 101.2
Cash outflow on purchase of intangible assets 7.2 3.7 20.8
Total cash outflow 42.8 40.1 122.0
The difference between total cash outflow and total additions is due to the
difference between opening and closing capital creditors and accruals.
10 Property, plant and equipment (continued)
There were no disposals of PPE in the current or prior periods which had any
significant net book value.
There are non-cancellable commitments to purchase PPE of £30.1m at the
current period end (15 June 2024 - £17.3m; 28 December 2024 - £16.2m).
11 Retirement benefit obligations
(a) Total amounts in respect of pensions in the period
24 weeks to 24 weeks to 52 weeks to
14 June
15 June
28 December 2024
2025 2024 £m
£m £m
Charged to the income statement:
Defined benefit plan - administrative costs 0.6 0.9 1.9
Defined benefit plan - total operating charge 0.6 0.9 1.9
Defined benefit plan - net finance charge - 0.1 0.3
Total defined benefit charge to profit before tax 0.6 1.0 2.2
Included in other comprehensive income:
Defined benefit plan - actuarial losses/(gains) 9.7 (34.3) (12.7)
(b) Other information - defined benefit pension plan
The Group operates a funded defined benefit pension plan which provides
benefits based on the career average pensionable pay of participating
employees. This plan was closed to new entrants from April 2013, and closed
to future accrual on 31 March 2021.
Key assumptions used in the valuation of the plan 24 weeks to 24 weeks to 52 weeks to
14 June
15 June
28 December 2024
2025 2024
Discount rate 5.60% 5.05% 5.50%
Inflation assumption - RPI 3.00% 3.15% 3.15%
Inflation assumption - CPI 2.60% 2.70% 2.75%
Life expectancy (yrs): pensioner aged 65
- male 85.7 85.8 85.7
- female 88.0 88.0 88.0
Life expectancy (yrs): non-pensioner aged 45
- male 86.7 86.7 86.7
- female 89.7 89.6 89.6
Balance sheet
The amount included in the balance sheet arising from the Group's obligations
in respect of defined benefit retirement benefit scheme is as follows:
14 June 15 June 28 December 2024
2025 2024 £m
£m £m
Present value of defined benefit obligations (797.9) (854.7) (808.0)
Fair value of scheme assets 785.5 875.4 805.9
(Deficit)/surplus recognised in the balance sheet (12.4) 20.7 (2.1)
In recognising a pension surplus at the end of the an accounting period, the
Group has considered the conditions and guidance given in IAS 19 and IFRIC 14
and has concluded that: it is appropriate to recognise a surplus in full;
there is no issue affecting the availability of a refund or reduction in
future contributions due to minimum funding requirements, and there is no
requirement to recognise an associated liability.
Movements in this amount during the period are as follows:
24 weeks to 24 weeks to 52 weeks to 28 December
14 June
15 June
2024
2025 2024
£m
£m £m
Deficit at start of period (2.1) (12.6) (12.6)
Administration cost (0.6) (0.9) (1.9)
Other finance charge - (0.1) (0.3)
Actuarial gains (9.7) 34.3 12.7
(Deficit)/surplus at end of period (12.4) 20.7 (2.1)
Statement of comprehensive income
Amounts taken to equity via the statement of comprehensive income in respect
of the Group's defined benefit plan are shown below:
Actuarial differences 24 weeks to 24 weeks to 52 weeks to 28 December
14 June
15 June
2024
2025 2024
£m
£m £m
Actuarial loss on plan assets (21.7) (25.8) (91.3)
Decrease in plan liabilities due to financial assumptions 17.3 59.4 102.7
(Increase)/decrease in plan liabilities due to experience (5.3) 0.7 (0.3)
Decrease in plan liabilities due to demographic assumptions - - 1.6
Total actuarial (losses)/gains (9.7) 34.3 12.7
Virgin Media pensions case
In 2023, the English High Court issued a judgment involving the Virgin Media
NTL Pension Plan which held that amendments to the plan's rules in relation to
benefit changes were invalid unless there was a formal confirmation from the
scheme actuary. There was concern that this judgement could have implications
for other UK defined benefit plans.
An appeal was made against this judgement. The appeal was heard in 2024 and
was dismissed. Throughout 2024, the Group monitored developments and concluded
that there was sufficient uncertainty not to warrant recognition of any
potential obligation in respect of this case in 2024.
On 5 June 2025, the Department for Work and Pensions (DWP) announced that the
Government will introduce legislation to give pension schemes affected by the
Virgin Media ruling the ability to retrospectively obtain written actuarial
confirmation that historical benefit changes met the necessary standards. The
defined benefit obligation presented in these condensed financial statements
reflects the plan benefits currently being administered, i.e. it treats all
past rule changes as being valid.
12 Alternative Performance Measures
Alternative performance measures are non-GAAP (Generally Accepted Accounting
Practice) measures and provide supplementary information to assist with the
understanding of the Group's financial results and with the evaluation of
operating performance for all the periods presented. Alternative performance
measures, however, are not a measure of financial performance under United
Kingdom adopted international accounting standards ('IFRS') and should not be
considered as a substitute for measures determined in accordance with IFRS. As
the Group's alternative performance measures are not defined terms under IFRS
they may therefore not be comparable with similarly titled measures reported
by other companies. A reconciliation of alternative performance measures to
the most directly comparable measures reported in accordance with IFRS is
provided below.
(a) Adjusted sales
Sales performance at the start and end of the year can be significantly
affected by the movement in the calendar year, increasing or reducing trading
days by up to 2 days. In the event of a 53 week year then the numbers of
trading days can increase or reduce by up to 6 days. In H1 2025 there were two
fewer trading days that in H1 2024, and the impact of this adjustment is shown
below:
24 weeks to 24 weeks to Change
14 June
15 June
2025 2024
£m £m %
Revenue 997.6 966.3 3.2%
Impact of two additional trading days in week 1 2024 (10.0)
Adjusted sales 997.6 956.3 4.3%
(b) Same depot sales
Sales performance can be significantly affected by the number of depots opened
in the period. The table below shows the impact of sales of new depots opened
in the last two years, compared to the sales of depots opened prior to the
last two years, referred to as "Same depot basis".
"International" comprises Howdens' depots in France, Belgium and the Republic
of Ireland.
Revenue £m (unless stated) 24 weeks to 14 June 24 weeks to 15 June Change Depots at period end
2025
2024
£m £m % No.
UK - same depot basis 948.9 932.9 1.7% 840
- depots opened in previous two years 12.9 0.8 31
961.8 933.7 3.0% 871
International 35.8 32.6 9.8% 77
Group 997.6 966.3 3.2% 948
International revenue in local currency 24 weeks to 14 June 24 weeks to 15 June Change Depots at period end
2025
2024
€m €m % No.
€m (unless stated)
- same depot basis 41.3 37.7 9.5% 73
- depots opened in previous two years 1.3 0.3 4
42.6 38 12.1% 77
-Ends-
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR FLFEEDDIVFIERecent news on Howden Joinery
See all newsREG - Howden Joinery Grp - Transaction in Own Shares
AnnouncementREG - Howden Joinery Grp - Director/PDMR Shareholding
AnnouncementREG - Howden Joinery Grp - Total Voting Rights
AnnouncementREG - Howden Joinery Grp - Block listing Interim Review
AnnouncementREG - Howden Joinery Grp - Transaction in Own Shares
Announcement