REG - Howden Joinery Grp - 2025 Full Year Results
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RNS Number : 4263U Howden Joinery Group PLC 26 February 2026
Delivering growth, taking market share, creating value.
Results summary
£ millions (unless stated) 2025(1) 2024(1) Change
vs 2024
Group revenue 2,418.0 2,322.1 +4.1%
- UK 2,333.2 2,247.4 +3.8%
- International(2) 84.8 74.7 +13.5%
Gross profit margin, % 62.7% 61.6% +110bps
Operating profit 355.3 339.2 +4.7%
- % 14.7% 14.6% +10bps
Profit before tax 344.9 328.1 +5.1%
Basic earnings per share, p 49.2p 45.6p +7.9%
Total ordinary dividend per share, p 21.9p 21.2p +3.3%
Cash at end of period 344.5 343.6
(1) The information presented relates to the 52 weeks to 27 December 2025 and
the 52 weeks to the 28 December 2024 unless otherwise stated.
(2) Comprises Howdens' depots in France, Belgium and the Republic of Ireland
(ROI).
Highlights
- Group revenue increased by 4.1% to £2,418.0m.
o UK revenue was 3.8% ahead of last year reflecting balanced pricing and
volumes along with ongoing market share gains, despite continued kitchen
market headwinds.
o International revenue grew 13.5% with good progress in developing Howdens'
differentiated model in France and the Republic of Ireland.
- Gross margins improved by 110bps to 62.7%, supported by revenue
growth, ongoing sourcing and manufacturing efficiencies helping offset cost
inflation.
- Delivered £41m of productivity and efficiency savings in the
total cost base.
- Profit before tax was 5.1% ahead of last year at £344.9m, and
Basic EPS was 7.9% ahead.
- Strong cash generation and the Group continues to maintain a
robust balance sheet.
- Proposed final dividend of 16.9p up 3.7%, bringing the total for
the year to 21.9p.
- New £100m share buyback announced for 2026.
Commenting on the results Andrew Livingston, Chief Executive said:
"The business advanced on all fronts in the year. We gained market share and delivered a strong operational performance with profit growth ahead of sales. Alongside this, we continued to invest in our strategic initiatives which is helping our trade customers win more business while making our operations more efficient and productive.
"For 2026, our planning assumption is that the UK kitchen market will be level year on year, following several years of decline, in what remains a competitive marketplace. Looking further ahead we have many significant longer-term growth opportunities, and our focus remains on continuing to deliver above‑market performance and enhanced returns for shareholders."
Operational developments in 2025
- Opened 23 new UK depots, of which 18 were opened in the final two
trading periods of the year, and added three depots in the international
business.
- Investment included capex of £156.5m, principally on our
strategic initiatives to drive future growth.
- Invested in our UK manufacturing capacity and capabilities, which
included a new project to upgrade our rigid cabinet and panel facility at
Runcorn.
- Completed 60 depot reformats (including relocations).
- Introduced 24 new kitchen ranges in 2025 to suit all budgets as we
continue to build out the significant opportunities to expand our entry-level,
mid-priced and premium kitchens.
- Launched a new pricing and margin ('PAM') tool enabling depots to
optimise their pricing with improvements in depot margins since launch.
- In France, we continued to focus on optimising the depot network
and the team capabilities with good progress made during the year.
- The Republic of Ireland is establishing itself as a strong
competitor in our categories and we opened another three depots, bringing the
total to 16 by the end of the year.
Outlook
- For 2026, our planning assumption is that the UK kitchen market
will be level year on year, following several years of decline, in what
remains a competitive marketplace.
- As we deliver day-to-day value for our trade customers, we will
aim to retain a profitable balance between price and volume, alongside
continued cost discipline.
- We believe our model is the right one to address the medium-term
opportunities in our markets. We are well prepared for the year ahead and well
placed to outperform our competitors.
- Our year-to-date performance has been in line with our
expectations and, while it is early in the new financial year, we remain on
track to meet current market expectations for FY2026(1).
(1) Current analysts' consensus forecasts for 2026 for profit before tax,
which is published on the Company's corporate website, is an average of
£354m, with a range of £345m to £383m.
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
Mobile: +44 (0)7711 875070
Results presentation:
There will be an in-person analyst and investor presentation at 0830 GMT today
hosted by
Andrew Livingston, Howdens' CEO, and Jackie Callaway, Howdens' CFO at:
Deutsche Numis, 21 Moorfields, London EC2Y 9DB, with light refreshments served
from 0800.
A live video webcast will be available on https://brrmedia.news/HWDN_FY25
(https://brrmedia.news/HWDN_FY25)
For more information see: www.howdenjoinerygroupplc.com
(http://www.howdenjoinerygroupplc.com) . The presentation can also be heard by
dialling the phone numbers below:
Location Phone Number
United Kingdom, Local
+44 (0) 33 0551 0200
United States, Local
+ 1 786 697 3501
Confirmation code: Please quote 'Howdens Full Year
Results'
The webcast will be recorded and available on our website after the event has
finished at:
www.howdenjoinerygroupplc.com (http://www.howdenjoinerygroupplc.com)
Note to editors:
1. About Howden Joinery Group Plc
Howdens is the UK's number one specialist kitchen and joinery supplier. In the
UK, the company sells kitchens and joinery products to trade customers,
primarily local builders, through 891 depots. In 2025, the Group generated
revenues of £2.4 billion and profit before tax of £344.9 million. Howdens is
a proud UK-based manufacturer, with a significant proportion of its kitchen
and joinery ranges manufactured in-house at its two principal factories in
Runcorn, Cheshire, and Howden, East Yorkshire. At the end of 2025, Howdens
operated from 79 depots in France, Belgium and the Republic of Ireland.
2. Timetable for the final dividend
The timetable for payment of the proposed final dividend is shown below. A
Dividend Reinvestment Plan ("DRIP") is provided by Computershare Investor
Services PLC. 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 https://www-uk.computershare.com/Investor/
(https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww-uk.computershare.com%2FInvestor%2F%23Home%3Fcc%3DUK%26lang%3Den%26theme%3Dcpu&data=05%7C02%7CMark.Fearon%40howdens.com%7C127b8d44c93e4af08b4d08de744c5fd8%7Cc7966bb526c04227b26e2c5fb17db44a%7C0%7C0%7C639076068574659571%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=KnpQrW5gwhME68q5%2F04lg0OSFw3gaybNSKysiiwiLDU%3D&reserved=0)
Ex-dividend date: 9 April 2026
Record date: 10 April 2026
Payment date: 22 May 2026
3. Provisional financial calendar for 2026
Trading update 28 April 2026
Annual General Meeting 7 May 2026
Half Year Results 23 July 2026
Trading update 5 November 2026
End of financial year 26 December 2026
Financial review
Financial results for 2025(1)
Revenue £m (unless stated) 2025 2024 Change # of depots 2025(3)
UK depots - same depot basis(2) 2,297.6 2,239.7 +2.6% 839
UK depots opened in previous two years 35.6 7.7 52
2,333.2 2,247.4 +3.8% 891
International depots 84.8 74.7 +13.5% 79
Group 2,418.0 2,322.1 +4.1% 970
Local currency revenue €m (unless stated) 2025 2024 Change # of depots 2025(3)
International - same depot basis(2) 94.2 86.2 +9.3% 72
Depots opened in previous two years 4.8 1.9 7
99.0 88.1 +12.4% 79
(1) The information presented relates to the 52 weeks to the 27 December 2025
and the 52 weeks to the 28 December 2024 unless otherwise stated.
(2) Same depot basis excludes depots opened in 2024 and 2025 and closed
depots.
(3) There was 1 depot closed in the UK in 2025. In International, 3 depots
were opened in the Republic of Ireland and 2 depots were closed in France
during 2025.
Group revenue was 4.1% ahead of last year at £2,418.0m (2024: £2,322.1m). UK
depot revenue of £2,333.2m (2024: £2,247.4m) was 3.8% ahead of last year and
2.6% ahead on a same depot basis, with the business performing well in the
final two periods of the year. Our differentiated competitive position in the
UK enabled the business to gain further market share despite a modest
contraction in the kitchen market. Local currency revenue of €99.0m (2024:
€88.1m) in the international depots was 12.4% ahead of the prior year and
grew 9.3% on a same depot basis. This was an encouraging performance, as we
continued to build out our depot network in the Republic of Ireland, and
optimise our sites in France and Belgium.
Gross profit
We maintained our sector leading gross margin by appropriately balancing
pricing and volumes. Gross profit was £84.3m ahead of last year at £1,515.4m
(2024: £1,431.1m). The higher gross margin percentage of 62.7% (2024: 61.6%)
reflected the benefit of the price increase at the start of the year and
increased volumes. It also included proceeds from an insurance claim relating
to the replacement of damaged production equipment in a panel line at the
Group's Howden manufacturing facility. This resulted in a one-off gain of
approximately £6m. Cost savings of £14m included sourcing benefits from raw
materials and finished goods suppliers. In addition, we delivered further
manufacturing efficiencies which directly offset all inflationary cost
increases in our factories.
Operating profit and profit before tax
Operating expenses increased by £68.2m to £1,160.1m (2024: £1,091.9m). This
included £28m of ongoing investments in our strategic initiatives with £12m
for new UK depots opened in 2024 and 2025 and £13m of other strategic
investments including digital upgrades and £3m relating to the expansion of
our international operations. Higher inflationary costs of around £27m,
principally payroll and property costs, were offset with continued
productivity and efficiency improvements. There was also a charge of £6.1m in
relation to the impairment of depot assets as part of our optimisation plans
in France, where we are planning to relocate 6 depots over the next two years.
Overall, operating profit was £16.1m or 4.7% ahead of last year at £355.3m
(2024: £339.2m). The EBIT margin was 10 basis points ahead at 14.7% (2024:
14.6%).
The net interest charge was £10.4m (2024: £11.1m). Profit before tax of
£344.9m was 5.1% ahead of the prior year (2024: £328.1m).
Tax, profit after tax and basic earnings per share
The tax charge was £77.2m (2024: £78.8m) which represented an effective tax
rate of 22.4% (2024: 24.0%). This was lower than our guidance at the start of
the year as we have further refined the patent box claim. Profit after tax was
£267.7m (2024: £249.3m). Basic earnings per share were up 7.9%, on the prior
year at 49.2p (2024: 45.6p) reflecting the increased profit for the year, a
lower effective tax rate and the benefit of the reduced number of shares in
issue following the share buyback programme completed in the year.
Cash
The net cash inflow before movements in working capital totalled £537.6m
(2024: £504.6m). Overall working capital increased by £26.3m to support
growth, with stock £18.5m higher as a result of depot openings and new
product introductions. Receivables at the end of the period were £14.2m
higher than at the end of the prior year principally due to the increase in
sales.
Payables were £6.4m higher. Capital expenditure was £156.5m and included the
one-off freehold purchase of the Runcorn manufacturing site for £31m.
Excluding this, capital expenditure was £125.5m, a similar level to last year
at £122.0m, as we continued to prioritise growth initiatives. Corporation tax
payments were lower at £25.7m (2024: £39.2m) as a result of prior year tax
credits due to the patent box claim. Dividends amounted to £116.6m (2024:
£115.9m) and share buybacks were £100.2m (2024 nil). The interest and
principal paid on lease liabilities totalled £123.9m (2024: £113.4m).
Reflecting the above, cash at the year-end was £344.5m (28 December 2024:
£343.6m).
Capital allocation and returns to shareholders
Our capital allocation policy is unchanged. We focus on achieving sustainable
profit growth by investing in organic expansion and broadening our
capabilities in adjacent categories. We aim to provide shareholders with an
attractive ongoing income stream and an ordinary dividend that grows in line
with the long-term prospects of the business. After allowing for these uses of
cash, Howdens remains committed to returning any surplus capital to
shareholders.
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 with a
strong balance sheet, 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. Our policy remains that when year-end cash is in excess of
£250m we expect to return surplus cash to shareholders. This provides
sufficient headroom to support organic growth, our seasonal working capital
requirements, and ongoing investments in our strategic initiatives, while
maintaining a strong balance sheet.
In July 2025 the Board declared an interim dividend of 5.0p per ordinary share
(2024: 4.9p per ordinary share), an increase of 2.0%. The Board is
recommending a final dividend for 2025 of 16.9p per ordinary share (2024:
16.3p per ordinary share), representing an increase of 3.7%. If approved by
shareholders at the AGM in May, the final dividend will be paid on 22 May 2026
to shareholders on the register on 10 April 2026. This brings the total
dividend for the year to 21.9p per ordinary share (2024: 21.2p per ordinary
share), a year-on-year increase of 3.3%.
Reflecting the Group's strong financial position, the Board is announcing
today a new £100m share buyback programme which will be completed in 2026.
Pensions
The defined benefit pension scheme has a surplus on an ongoing funding basis
meaning that no contributions are currently payable by the company. At 27
December 2025, the deficit was £7.8m on an IAS 19 basis (2024: Deficit of
£2.1m). The scheme is closed for future accrual.
There is a mechanism in place to reinstate contributions if the funding
position deteriorates in the future (as well as to turn them off again if the
funding position subsequently improves). The current funding arrangement is in
place to 31 May 2027 but will be reassessed before then as part of the
triennial valuation being carried out as at 31 March 2026.
The Company has actively engaged with the Trustee to manage and reduce pension
risks pro-actively over time through a Joint Working Party framework. We will
look to accelerate actions to reduce and manage pension risk in areas such as
investment strategy, data and benefits and scheme funding.
Board changes
Paul Hayes notified the Board of his intention to retire from his role as
Chief Financial Officer (CFO) and Executive Director of the Company effective
30 May 2025. Following an extensive selection process, Paul was succeeded by
Jackie Callaway who joined the Howdens Board on 2 June 2025. Prior to her
appointment to Howdens, Jackie served as CFO of Coats Group plc and as CFO of
Devro plc. She is currently a Non-Executive Director of IMI plc, the FTSE 100
specialist engineering company. Jackie has a strong finance record and
extensive experience across multinational manufacturing and supply chain
businesses. She is a Fellow of the Institute of Chartered Accountants in
England and Wales.
Technical guidance for 2026
Income statement
- We anticipate inflationary cost headwinds of around £30m in the
total cost base in areas such as commodities, labour and additional property
costs. As in previous years, we will offset these costs, where practicable,
with further productivity and efficiency savings.
- Continued investment in our strategic initiatives to support
future growth of c.£30m.
- Foreign exchange sensitivity in COGS of Euro: +/- €0.01 =
£2.3m; US Dollar: +/- $0.01 = £0.7m.
- Net interest charge of c.£16m.
- Full year effective tax rate of 23% to 24%.
Cashflow
- Cash tax expected to be c.£60m.
- Capital expenditure of c.£125m including our ongoing investments
to support future growth.
- Share buyback of £100m announced today.
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:
§ Evolving our depot model by using space more efficiently to provide the
best environment in which to do business with our customers.
§ Improving our range and supply management to improve choice and service
while enhancing productivity in our manufacturing, sourcing and supply chain
activities.
§ Developing our digital platforms to raise brand awareness, support the
business model and deliver productivity gains and more leads for depots and
customers.
§ Expanding our international presence in 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.
Evolving our depot model
During the year Howdens opened 23 new depots in the UK, including 18 in the
final two trading periods of the year, and all new depots are opened in the
updated format. This year, we expect to open around 25 more depots as we
continue to take a disciplined approach to new depot locations. We have line
of sight to operate with around 1,000 depots in the UK, versus the 891 trading
at the end of the year. The depots are supported by our cross docking (XDC)
facilities which enable depots to optimise their stock holdings and provide
high levels of service across the product range.
We have continued with our reformatting programme for existing depots. Last
year, we completed a further 60 revamps including nine relocations, taking the
total to 410. These sites principally comprise Howdens' larger sized and
longest established depots. This year, including relocations, we plan to
convert another 45 depots; over the next two years we will also make minor
layout modifications to conversions completed prior to 2025 as we continue to
improve the customer experience. By the end of the 2026, we will have around
77% of all UK depots trading in the updated format.
Improving our product range and supply management
Range Management
Howdens is committed to providing its customers with market leading and fairly
priced products and our 2026 kitchen NPI makes more colours, styles and
finishes available at more price points. Excluding Paint-to -Order ('PTO') we
have 24 new kitchens confirmed for 2026 and we will end the year with our
entire offering of such kitchens organised into 11 families, with a similar
total kitchen count to last year.
Entry and mid-level kitchens remain the core source of our rigid cabinet
volumes and kitchen invoice value. In 2025, we introduced 13 new kitchens
across our established families at these price points and added a new Frome
family in four colours. In 2026, we have 15 new kitchens planned for our
current entry and mid-level families. These include adding six new Frome
colours (as we discontinue Chelford), and updates to our best performing
mid-level families, including Clerkenwell in Super Matt Mist and Halesworth in
Ash Green.
We have upscaled our higher priced kitchen portfolio, using Howdens' scale and
manufacturing capabilities to offer a bespoke look at competitive prices.
Classic Timber Kitchens performed particularly well in 2025, with PTO options
growing in popularity. In 2026 we are refreshing the PTO palette with four new
colours, with two of the leading PTO colours now available as Chilcomb and
Elmbridge stock colours.
Solid surface worktops continue to present a significant opportunity. Our
in-house manufacturing capacity (amongst the largest in the UK) supports rapid
template to fit times; ahead of peak trading, our total offering will be
similar to last year, with increased display space in more depots.
We continue to upgrade other categories, including own label brands that
complement third party product. Lamona (one of the UK's leading integrated
appliance brands) has undergone a major refresh and we have modified the
design and are lowering prices on a suite of high-volume products while also
updating higher priced lines. In flooring, "Oake & Gray" now represents a
substantial proportion of category sales. In ironmongery, our "Fuller &
Forge" brand launched last year landed well and our offering will be expanded
in 2026. Doors and Joinery remain key footfall drivers; new product
introductions this year include a new premium range of Howden branded hardwood
doors, with further subcategory development in wall panelling, stair parts and
loft spaces.
Fitted bedroom sales were well ahead of last year. Bedrooms are a source of
incremental sales and profit and leverage our design, manufacturing and supply
infrastructure. For 2026, we will continue to target entry and mid-price
points with five new bedrooms, including Bridgemere in Pebble, Halesworth in
Ash Green.
Manufacturing and supply chain
Howdens is an in-stock business, and high stock availability is a key reason
the trade buys from us. In 2025, deliveries totalled 73.4 million pieces and
our service level from primary to depots was 99.98%. Our XDC network enables
next day delivery and, together with initiatives such as "Daily Traders",
supports exceptional service levels. We continue to balance make versus buy to
optimise cost, availability, resilience and flexibility. Recent investments
have increased capacity and broadened capabilities; at Runcorn, our multi-year
development programme is underway following planning permissions and the
acquisition of the freehold, and will provide more capacity at the site, with
increased flexibility and productivity and lower CoGS than would otherwise
have been the case.
The Runcorn programme includes installing a new high volume panel machining
line with automated WIP, building two extensions to house the equipment and
significantly increasing warehouse storage capacity, and utilising additional
land to expand trailer parking. The works are expected to take about three
years to complete and are included within overall Group capex guidance.
Developing our digital platform
Our digital strategy reinforces strong local relationships between depots and
their customers by raising brand awareness, supporting new services and ways
to trade, and delivering productivity benefits and more leads for depots and
customers. Usage of online account facilities continues to increase, with
59,000 new registrations and around 61% of customers holding an online account
at year end. Total users viewing our trade platform increased by 45%, with
around 80% regularly viewing their individual confidential prices. Customers
with an online account traded more frequently and spent more than non-users.
We generated high levels of engagement on Howdens.com and across social
channels, with site visits of 24 million, the highest number of fitted kitchen
site visits among specialists, and a follower base of c.721,000 (up 18%) and
around 6.8 million engagements a month.
Usage of our upgraded Click & Collect service for everyday products
continues to increase. We have also introduced a depot account management tool
to help depots manage customer relationships more efficiently and rolled out a
new in-house pricing and margin tool ("PAM") in all UK depots to make price
management easier and more effective; feedback has been very positive, and we
are seeing improvements in depot margin on everyday products in the system.
Developing our international operations
In 2025, sales of our operations based in France increased year on year at a
higher rate than the previous two years. In tough market conditions,
performance improved as we focused on existing depot sales, team capability
(including a new very experienced leadership team) and enhanced "footfall
promoting" product, with trials of a smaller 500 sqm version of the depot
format in Reims that incorporates the latest UK format innovations and has the
benefit of lower lease related costs. We expect to maintain the aggregate
number of depots trading at around the current level as we actively manage the
estate to optimise performance.
Sales in the Republic of Ireland were well ahead of last year, and we expect
to open around five more depots in 2026, taking the total to 21 by the year
end. The Irish market suits our differentiated, in stock trade model and
continues to respond well to our approach.
SUSTAINABILITY
The Group continues to advance its sustainability agenda, underpinned by its
ambition to be a leading sustainable business in the kitchen and joinery
sector. This ambition is supported by a UK‑based manufacturing footprint,
strong supplier partnerships, and the Group's externally validated Net Zero
plan, approved by the Science Based Targets initiative in January 2024.
Despite an evolving regulatory landscape in both the UK and EU-with progress
in some areas delayed, including the EU Deforestation Regulation-Howdens
remains committed to maintaining a leadership position through continued
evaluation of future requirements.
The Group's Net Zero plan targets a 42% reduction in Scope 1 and 2 emissions
and a 25% reduction in Scope 3 emissions by 2030, with Net Zero targeted by
2050. The Scope 3 target was achieved in 2025; however, given that 95% of
total emissions sit within Scope 3, this area remains a strategic priority as
engagement deepens across the value chain. More than 100 key suppliers are now
onboarded to the emissions‑reduction programme, providing verified data and
decarbonisation plans, supported by newly established internal resource
dedicated to supplier engagement.
The Group has completed an ESG Double Materiality Assessment, identifying
Biodiversity and Nature, Circularity, and workers in the value chain as
priority areas, building on existing Science Based Targets initiative (SBTi)
commitments and Task Force on Climate-related Financial Disclosures
(TCFD) reporting. While EU Corporate Sustainability Reporting Directive (CSRD)
reporting for European operations has been deferred to 2028, the Group is
using this period to strengthen data credibility, auditability, and alignment
between impact and financial disclosures.
Operational progress remains strong, with all manufacturing sites and depots
maintaining zero‑to‑landfill status and the successful integration of the
Hippo waste management system across depots, avoiding nearly 7,000 tonnes of
landfill waste in 2025. Decarbonisation initiatives continue, including the
commissioning of 7,000 solar panels at the Howden site, generating 1.8 GWh of
electricity, which is around 12% of site consumption, avoiding almost 400
tonnes of CO₂ to date, alongside continued investment in renewable energy
sourcing across sites and depots.
Fleet decarbonisation has accelerated with increased use of HVO fuel,
deployment of LNG vehicles, introduction of longer‑capacity trailers to
reduce fleet movements, and continued usage of electric trucks within the XDC
network.
Across Sustainable Product and Packaging, the business is strengthening
lifecycle considerations in product design, enhancing durability, reducing
virgin material use, improving energy performance, and increasing recycled
content across ranges such as Frome, Allendale, appliances and flooring.
The Group continues to embed inclusion as a strategic priority through its
"Worthwhile for All" ambition, with year‑on‑year improvements across
inclusion survey indicators, expanded management capability programmes,
consolidation of EDI working groups, and broader accessibility through
apprenticeships and early‑career pathways. Efforts around employee wellbeing
with a focus on mental health remain robust, with over 50 wellbeing
representatives and extensive health‑related initiatives delivered
throughout 2025.
Finally, apprenticeships continue to play a central role in talent
development, with strong recruitment, high retention rates, and a streamlined
depot apprenticeship model supporting operational capability. Early careers
programmes will continue to expand in 2026, with a focus on strengthened
manager engagement, clearer ownership and improved planning across the
apprentice lifecycle.
A more detailed overview of our activities in the year will be available in
the 2025 Report and Accounts.
GOING CONCERN
The Directors have adopted the going concern basis in preparing the financial
statements and have concluded that there are no material uncertainties leading
to significant doubt about the Group's going concern status, and that there
were no significant judgements involved in coming to this conclusion. The
reasons for this are explained below.
Going concern review period
The going concern review period covers the period of at least 12 months after
the date of approval of these 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 in detail in the 'Principal risks and
uncertainties' section, starting on page 13. 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 additional amounts of faster-moving inventory as a specific
mitigation against supply chain disruption, and the Directors consider that
the effects of the other risks could result 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 2025,
as well as early weeks' trading in 2026. They have reviewed the Group balance
sheet at 27 December 2025, noting that the Group is debt-free, has cash and
cash equivalents of £345m, 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 final
2025 Group forecast, prepared in December 2025 and including the actual
results of the 2025 peak sales period. 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 capital allocation model (see page 5).
2. A 'severe but plausible' downside scenario 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. 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 five-year, committed, multi-currency revolving credit facility
of up to £150m which expires in September 2029 and which was not drawn at the
period end. A summary of the facility is set out in note 19 to the December
2025 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 testing
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 on going concern
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 have a reasonable expectation that the Group will continue
to operate and to meet its liabilities in full and as they fall due for the
going concern review period set out above. Accordingly, they continue to adopt
the going concern basis in preparing these financial statements.
LONG-TERM PROSPECTS AND VIABILITY
The Directors have assessed the Group's long-term prospects, solvency and
liquidity, with particular reference to the factors below:
Current position
§ History of profitable trading, with strong net profit margins.
§ Cash and cash equivalents balance at 27 December 2025 of £345m.
§ Debt-free. Consistently cash-generative. Proven ability to maintain strong
cash balances whilst also investing for growth and returning cash to
shareholders.
§ £150m committed borrowing facility, due to expire in September 2029.
Unused, but available if needed.
§ Strong relationships with suppliers and customers.
§ Proven ability to flex the operating cost base in a severe economic
downturn.
§ Robust disaster recovery and business continuity framework.
Strategy and business model
§ Proven, successful business model.
§ Demonstrated agility and resilience of the business model to adverse
economic conditions.
§ Clear strategic direction.
Robust assessment of principal risks
§ The Directors' role in the risk identification, management, and assessment
process is outlined on
page 13, followed by details of the principal risks and mitigations.
§ The Directors are satisfied that they have carried out a robust assessment
of the Group's principal risks over the viability period on the basis already
described in the going concern disclosure directly above.
Assessment of viability
Time period and scenario modelling
The Directors' review of the Group's long-term viability used a three-year period to December 2028. This was considered to be the most suitable period as it aligns with the Group's strategic planning process.
The financial modelling to support the assessment of viability was based on the three scenarios used for the going concern assessment and detailed above. We have tested the borrowing facility covenants and the facility remains available under all of the viability scenarios. We have therefore included the credit available under the facility in our assessment of headroom.
1. The base case scenario takes the base case described in the discussion of going concern above and extends it over the viability assessment period. It assumes future revenue and profit in line with management expectations, investments in capital expenditure and cash outflows for dividends and share buybacks in accordance with our capital allocation model (see page 5).
2. The severe but plausible downturn scenario takes the same decline over the going concern period as described in the discussion of going concern above and then assumes a phased recovery over the rest of the three-year period. It assumes capex at a lower level than in the base case, but which is still in line with our announced strategic priorities for growth, and dividends and share buybacks in line with our capital allocation model.
3. The reverse stress-test scenario assumes a phased recovery of margin and profit on the same bases as for the severe but plausible downturn scenario. This is then stress-tested to find the maximum amount by which sales in the first year would have to fall before the Group would no longer have headroom at any point in the viability assessment period, without taking further mitigating actions. It assumes capex at a maintenance level and no dividends or share buybacks.
The Directors consider that the reasonably foreseeable financial effects of any reasonably likely combination of the Group's principal risks are unlikely to be greater than those effects which were modelled in the severe but plausible downside and reverse stress-test scenarios.
Results of scenario testing
The results of the base case and plausible downside scenario modelling showed that the Group would have sufficient headroom over the viability assessment period.
The reverse stress-test showed that the level of fall in sales required in the first year of the viability assessment period was significantly more than the fall modelled in the severe but plausible downturn 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 on viability
Having considered the Group's current position, strategy, business model and principal risks in their evaluation of the prospects of the business, and having reviewed the outputs of the scenario modelling, the Directors concluded that they have a reasonable expectation that the Group will continue to operate and to meet its liabilities in full and as they fall due during the three-year period to December 2028.
Principal Risks and Uncertainties
When we look at risks, we specifically think about internal and external
drivers of operational, compliance, finance and strategic risk areas over
short, medium, and long-term timescales.
Our principal risks
The following describes our principal risks, the possible impact arising from
them, what we do to mitigate them and our risk appetite.
1. Cyber
Risk & Impact:
A major cyber security breach could result in systems being unavailable,
causing operational difficulties, and/or sensitive data to be unavailable or
compromised.
Mitigating factors:
§ We place continuous focus on training our people in cyber security, as we
recognise that these risks are dynamic, not always technical and awareness is
our first point of mitigation.
§ We employ industry standard IT security controls and regularly engage
external specialists to validate the effectiveness of our controls against
best practice.
§ We have robust disaster recovery and business continuity plans that are
tested regularly.
§ We adopt a continuous improvement approach to IT security and continue to
invest in the security of our systems.
Risk appetite:
We have a low appetite for cyber security risk and manage IT security closely
to secure the confidentiality, integrity, and availability of our systems.
2. Market Conditions
Risk & Impact:
We sell our products to independent builders who install them in different
types of housing. Our sales depend on the demand for repair, maintenance,
and improvement services. If activity falls in these areas, it can affect
our sales.
Mitigating factors:
§ We have proven expertise in managing selling prices and costs. Data on
competitors, depot activity and pricing are discussed by the Executive
Committee at each meeting.
§ We use insights from our depot network, our builders' forums and other
channels. This is reviewed regularly by the Executive Committee and the Board.
§ We use our good relationships with our suppliers to alert us of any
changes. Our suppliers update us on their assessment of trading and market
performance through regular reviews with our leadership team. We also gather
insights from supplier visits and our Supplier Conference.
Risk appetite
We have a low appetite for market condition risks and lever our relationships
to identify movements early to enable appropriate action to be taken.
3. People
Risk & Impact:
Our business could be adversely affected if we were unable to attract, retain
and develop our staff; or if we lost a key member of our team.
Mitigating factors:
§ We continue to invest in our employee value proposition, striving to
provide the best possible working environment and growth opportunities for our
employees.
§ The Executive Committee and senior leadership team assess succession plans
for key roles regularly to ensure that appropriate continuity in place.
§ The Remuneration Committee and Board are regularly updated on key people
activity such as our internal projects to improve diversity as well as key
programmes such as employee financial education.
§ We continue to support a wide variety of apprenticeships, accreditations
and development programmes across all areas of our business.
Risk appetite:
We have a low appetite for people risk and work hard in ensuring that they
feel valued, rewarded appropriately, and have opportunities to develop and
progress in their Howdens career.
4. Health & Safety
Risk & Impact:
We have a large estate which employ various activities that could cause harm
to our staff, our customers, their customers, and the communities around us.
Mitigating factors:
§ We have invested in safe ways of working. We have developed dedicated
health and safety teams and formalised systems that help us stay safe.
§ We monitor, review, and update our practices to take account of changes in
our environment or operations and in line with best practice and changing
legislation.
§ We make sure we keep talking about health and safety at every level of the
business, led by the Executive Committee.
Risk appetite:
We put a great deal of effort into identifying and managing health &
safety issues before they occur and have a low appetite for health and safety
risks.
5. Supply Chain
Risk & Impact:
A failure in governance, or disruption to our supply chain, relationship with
key suppliers, or manufacturing and distribution operations could affect our
ability to service our customers' needs. If this happened, we could lose
customers and sales.
Mitigating factors:
§ We maintain strong relationships with our suppliers. We use long-term
contracts and multiple sourcing to safeguard the supply of key products.
§ We have invested in our supply chain and distribution to secure capacity
and agility when it is required. We have optimised our stock levels.
§ Supplier reviews are discussed regularly with the Executive Committee. In
addition, a sub-committee monitors governance of supplier risk and considers
potential issues.
Risk appetite:
We have a low appetite for supply chain risk and will put effort in
identifying them early to enable us to prevent stock issues at our depots.
6. Maximising Growth
Risk & Impact:
Failure to recognise, innovate and exploit opportunities could impact on
growth, we must align our business model, risk appetite, structures, and
skills with opportunities to maximise our growth potential.
Mitigating factors:
§ We continue to invest in our depot environment, people, services and
systems, and our manufacturing and distribution capabilities to equip them for
growth.
§ Growth activities are reviewed in the light of our risk appetite, values,
business model and culture.
§ Our strategic priorities are discussed at the senior leadership, Executive
Committee and Board level.
§ The Board is updated on the strategic plan regularly, and there is a
regular programme of 'Spotlight' sessions which examine specific areas of the
strategy.
Risk appetite:
We have a balanced appetite for risk when it comes to growth, we are willing
to accept some risk where we see opportunity but carefully balance that risk
with the potential reward presented.
7. Business Model & Culture
Risk & Impact:
If we lose sight of our values, model, or culture we will not successfully
service the needs of the local independent builder and their customers, and
our long-term profitability may suffer.
Mitigating factors:
§ Our values, business model and culture are at the centre of our activities
and decision-making processes, and they are led by the actions of the Board,
Executive Committee, and senior management.
§ The Board and Executive Committee regularly visit our depots and factories,
our logistics and support locations and hold events to reinforce the
importance of our values, model, and culture.
§ Regular 'Town Hall' meetings are held to bring together teams to discuss
our successes and challenges.
Risk appetite:
We have a low appetite for risks that can adversely impact on our business
model and culture and put great emphasis on identifying issues and addressing
them early.
8. Product
Risk & Impact:
If we do not support the builder with products that they, and their customers,
want we could lose their loyalty, and sales could diminish.
Mitigating factors:
§ Our product team regularly refresh our offerings to meet builders' and
end-users' expectations for design, price, quality, availability, and
sustainability.
§ We work with our suppliers, external design and brand specialists and
attend product design fairs to monitor likely future trends.
§ Our local depot staff have close relationships with their customers and
end-users, and we actively gather feedback from them about changes in trends.
Risk appetite:
We have a balanced appetite for product risk and are willing to take some
calculated risks when selecting new products to continue to meet the needs of
our customers.
9. Business Continuity & Resilience
Risk & Impact:
We have some key business operations and locations in our infrastructure that
are critical to the continuity of our business operations.
Mitigating factors:
§ We maintain and regularly review our understanding of what our critical
operations are.
§ We ensure resilience by design, building high levels of protection into key
operations and spreading risk across multiple sites where possible.
§ We ensure appropriate business continuity plans are in place for these and
have a Group wide incident management team and procedures established.
§ We regularly review continuity plans for sourcing and logistics approaches
to support peak trading.
Risk appetite:
We have a low appetite for business continuity risk, ensuring that critical
functions are resilient and appropriate business continuity plans are in place
to protect them.
Cautionary Statement
Certain statements in this Full 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.
Directors' Responsibility Statement
The 2025 Annual Report and Accounts, which will be issued in March 2026, will
contain a responsibility statement in compliance with DTR 4.1.12 of the
Listing Rules which sets out that as at the date of approval of the Annual
Report and Accounts the Directors confirm to the best of their knowledge:
- the financial statements, prepared in accordance with the
applicable set of accounting standards, give a true and fair view of the
assets, liabilities, financial position and profit or loss of the Group and
Company, and the undertakings included in the consolidation taken as a whole;
- the Annual Report and Accounts includes a fair review of the
development and performance of the business and the position of the Group and
the undertakings including the consolidation taken as a whole, together with a
description of the principal risks and uncertainties they face; and
- the Annual Report and Accounts, taken as a whole, is fair,
balanced, and understandable and provides the information necessary for
shareholders to assess the Group's position and performance, business model
and strategy.
This responsibility statement was approved by the Board of Directors and is
signed on its behalf by:
Andrew Livingston Jackie Callaway
Chief Executive Officer Chief Financial Officer
25 February 2026
Consolidated income statement
Notes 52 weeks to 52 weeks to
27 December
28 December
2025
2024
£m £m
Revenue 2 2,418.0 2,322.1
Cost of sales (902.6) (891.0)
Gross profit 1,515.4 1,431.1
Operating expenses (1,160.1) (1,091.9)
Operating profit 3 355.3 339.2
Finance income 13.1 9.9
Finance costs (23.5) (21.0)
Profit before tax 344.9 328.1
Tax on profit 4 (77.2) (78.8)
Profit for the period attributable to the equity holders 267.7 249.3
of the parent
Earnings per share:
Basic earnings per 10p share 5 49.2p 45.6p
Diluted earnings per 10p share 5 49.0p 45.4p
Consolidated statement of comprehensive income
Notes 52 weeks to 52 weeks to
27 December
28 December 2024
2025
£m
£m
Profit for the period 267.7 249.3
Items of other comprehensive income:
Items that will not be reclassified subsequently to profit
or loss:
Actuarial (losses)/gains on defined benefit pension scheme (4.2) 12.7
Deferred tax on actuarial losses and gains on defined benefit pension scheme 1.1 (3.2)
Items that may be reclassified subsequently to profit or loss:
Currency translation differences 3.3 (3.1)
Other comprehensive income for the period 0.2 6.4
Total comprehensive income for the period attributable 267.9 255.7
to equity holders of the parent
Consolidated balance sheet
Notes 27 December 2025 28 December 2024
£m £m
Non-current assets
Intangible assets 62.6 58.1
Property, plant and equipment 576.1 500.6
Lease right-of-use assets 665.2 642.3
Deferred tax asset 14.7 10.5
Long-term prepayments and other debtors 3.0 1.4
1,321.6 1,212.9
Current assets
Inventories 409.2 390.7
Corporation tax - 25.7
Trade and other receivables 278.8 264.6
Cash and cash equivalents 344.5 343.6
1,032.5 1,024.6
Total assets 2,354.1 2,237.5
Current liabilities
Lease liabilities (97.0) (89.3)
Trade and other payables (384.0) (386.8)
Corporation tax (2.9) -
Provisions (8.2) (8.3)
(492.1) (484.4)
Non-current liabilities
Pension liability 7 (7.8) (2.1)
Lease liabilities (607.9) (591.7)
Deferred tax liability (51.6) (26.4)
Provisions (3.8) (4.2)
(671.1) (624.4)
Total liabilities (1,163.2) (1,108.8)
Net assets 1,190.9 1,128.7
Equity
Share capital 54.2 55.4
Capital redemption reserve 11.0 9.8
Share premium 87.5 87.5
ESOP and share-based payments 25.0 21.3
Treasury shares (12.2) (18.8)
Retained earnings 1,025.4 973.5
Total equity 1,190.9 1,128.7
The financial statements were approved by the Board and authorised for issue
on 25 February 2026 and were signed on its behalf by:
Jackie Callaway - Chief Financial Officer
Consolidated statement of changes in equity
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 55.4 9.8 87.5 16.6 (24.0) 833.1 978.4
Accumulated profit for - - - - 249.3 249.3
the period
Other comprehensive - - - - - 6.4 6.4
income for the period
Total comprehensive - - - - - 255.7 255.7
income for the period
Current tax on share schemes - - - - - 0.5 0.5
Deferred tax - - - - - 0.1 0.1
on share schemes
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 55.4 9.8 87.5 21.3 (18.8) 973.5 1,128.7
Accumulated profit for - - - - 267.7 267.7
the period
Other comprehensive - - - - - 0.2 0.2
income for the period
Total comprehensive - - - - - 267.9 267.9
income for the period
Current tax on share schemes - - - - - 0.4 0.4
Deferred tax on - - - - - 0.4 0.4
share schemes
Movement in ESOP - - - 10.3 - - 10.3
Transfer of shares from treasury into share trust - - - (1.4) 1.4 - -
Transfer of shares from Treasury to settle share awards - - - (5.2) 5.2 - -
Buyback and cancellation (1.2) 1.2 - - - (100.2) (100.2)
of shares
Dividends - - - - - (116.6) (116.6)
At 27 December 2025 54.2 11.0 87.5 25.0 (12.2) 1,025.4 1,190.9
The item "Movement in ESOP" consists of the share-based payment charge in the
year, together with any receipts of cash from employees on exercise of share
options.
Consolidated cash flow statement
Notes 52 weeks to 52 weeks to
27 December 2025
28 December 2024
£m £m
Profit before tax 344.9 328.1
Adjustments for:
Finance income (13.1) (9.9)
Finance costs 23.5 21.0
Depreciation, amortisation and impairment of owned assets 68.6 57.1
Depreciation, impairment and loss on termination of leased assets 102.2 97.0
Share-based payments charge 10.3 9.6
(Increase)/decrease in long term prepayments (1.6) (0.6)
Difference between pensions operating charge and cash paid 1.4 1.9
Loss on disposal of property, plant and equipment and intangible assets 1.4 0.4
Operating cash flows before movements in working capital 537.6 504.6
Movements in working capital
Increase in inventories (18.5) (7.9)
Increase in trade and other receivables (14.2) (70.1)
Increase in trade and other payables and provisions 6.4 12.7
(26.3) (65.3)
Cash generated from operations 511.3 439.3
Tax paid (25.7) (39.2)
Net cash flow from operating activities 485.6 400.1
Cash flows used in investing activities
Payments to acquire property, plant and equipment (143.9) (101.2)
Payments to acquire intangible assets (12.6) (20.8)
Receipts from sale of property, plant and equipment 0.1 0.1
and intangible assets
Interest received 13.2 9.8
Net cash used in investing activities (143.2) (112.1)
Cash flows used in financing activities
Payments to acquire own shares (100.2) -
Receipts from release of shares from share trust - 0.4
Dividends paid to Group shareholders 6 (116.6) (115.9)
Interest paid - including on lease liabilities (23.4) (20.7)
Repayment of capital on lease liabilities (100.5) (92.7)
Net cash used in financing activities (340.7) (228.9)
Net increase in cash and cash equivalents 1.7 59.1
Cash and cash equivalents at beginning of period 343.6 282.8
Effect of movements in exchange rates on cash held (0.8) 1.7
Cash and cash equivalents at end of period 344.5 343.6
Notes to the consolidated financial statements
1 General Information
Accounting period
The Group's accounting period covers the 52 weeks to 27 December 2025. The comparative period covered the 52 weeks to 28 December 2024.
Statement of compliance and basis of preparation
The Group financial statements have been prepared in accordance with UK-adopted international accounting standards.
The financial statements have been prepared on the historical cost basis, modified for certain items carried at fair value, as stated in the accounting policies.
These consolidated financial statements include the accounts of the Company and all entities controlled by the Company, together referred to as "the Group", from the date control commences until the date that control ceases.
"Control" is defined as the Group having power over the subsidiary, exposure or rights to variable returns from the subsidiary, and the ability to use its power to affect the amount of returns from the subsidiary. All subsidiaries are 100% owned and the Group considers that it has control over them all.
The financial information set out above does not constitute the company's
statutory accounts for the 52 week period ended 27 December 2025 or 52 weeks
period ended 28 December 2024 but is derived from those accounts. Statutory
accounts for 2024 have been delivered to the registrar of companies, and those
for 2025 will be delivered in due course. The auditor has reported on those
accounts; their reports were (i) unqualified, (ii) did not include a reference
to any matters to which the auditor drew attention by way of emphasis without
qualifying their report and (iii) did not contain a statement under section
498 (2) or (3) of the Companies Act 2006.
Going concern
The Directors have undertaken a robust assessment and concluded that it is
appropriate to prepare the financial statements on the going concern basis.
They have not identified any material uncertainties and there were no
significant judgements involved in coming to this conclusion. Full details are
set out on pages 9 to 11.
2 Segmental reporting
(a) Basis of segmentation, and other general information
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. Thus, the information required in respect of profit or loss,
assets and liabilities, can all be found in the relevant primary statements
and notes to these consolidated financial statements.
The Howden Joinery business derives its revenue from the sale of kitchens and
joinery products, and related services.
(b) Geographical information
The Group's operations are mainly located in the UK, with a smaller presence
in France, Belgium and the Republic of Ireland. The Group has depots in each
of these locations. The Group's manufacturing and sourcing operations are
located in the UK.
The following tables present the required information by geographical market
on revenue and non-current assets.
Revenues from external customers
52 weeks to 52 weeks to
27 December 2025
28 December 2024
£m £m
UK 2,333.3 2,247.4
France, Belgium and Ireland 84.7 74.7
2,418.0 2,322.1
Non-current assets (excluding non-current deferred tax)
27 December 2025 28 December 2024
£m £m
UK 1,242.7 1,129.4
France, Belgium and Ireland 64.2 73.0
1,306.9 1,202.4
3 Operating profit
Operating profit has been arrived at after (charging)/crediting:
52 weeks to 52 weeks to
27 December 2025
28 December 2024
£m
£m
Cost of inventories recognised as an expense (895.3) (889.5)
Write down of inventories (7.3) (1.5)
Loss on disposal of fixed assets (1.4) (0.4)
Auditor's remuneration for audit services (1.5) (1.4)
All of the items above relate to continuing operations.
4 Current tax
(a) Tax in the income statement
52 weeks to 52 weeks to
27 December 2025 28 December 2024
£m £m
Current tax:
Current year 67.5 60.5
Adjustments in respect of previous periods (12.8) (6.8)
Total current tax 54.7 53.7
Deferred tax:
Current year 13.6 21.2
Adjustments in respect of previous periods 8.9 3.9
Total deferred tax 22.5 25.1
Total tax charged in the income statement 77.2 78.8
UK Corporation tax is calculated at 25% (2024: 25%) of the estimated
assessable profit for the period. Tax for other countries is calculated at the
rates prevailing in the respective jurisdictions.
(b) Tax relating to items of other comprehensive income or changes in equity
52 weeks to 52 weeks to
27 December 2025
28 December 2024
£m £m
Deferred tax (credit)/charge to other comprehensive income (1.1) 3.2
on actuarial difference on pension scheme
Deferred tax credit to equity on share schemes (0.4) (0.1)
Current tax credit to equity on share schemes (0.4) (0.5)
Total credit to other comprehensive income or changes in equity (1.9) 2.6
(c) Reconciliation of the total tax charge
The total tax charge for the period can be reconciled to the result per the
income statement as follows:
52 weeks to 52 weeks to
27 December 2025
28 December 2024
£m
£m
Profit before tax 344.9 328.1
Tax at the UK corporation tax rate of 25.0% (2023: 23.5%) 86.2 82.0
IFRS2 share scheme charge (0.9) 0.1
Expenses not deductible for tax purposes 1.4 1.7
Tax losses not recognised 6.3 6.3
Non-qualifying depreciation 1.8 1.6
Patent box claim (13.7) (10.0)
Other tax adjustments in respect of previous years (3.9) (2.9)
Total tax charged in the income statement 77.2 78.8
The Group's effective rate of tax is 22.4% (2024: 24.0%).
5 Earnings per share
From continuing operations 52 weeks to 27 December 2025 52 weeks to 28 December 2024
Earnings Weighted average number of shares Earnings Earnings Weighted average number of shares Earnings
per share
per share
£m m
£m m
p p
Basic earnings per share 267.7 544.2 49.2 249.3 546.7 45.6
Effect of dilutive share options - 2.6 (0.2) - 2.1 (0.2)
Diluted earnings per share 267.7 546.8 49.0 249.3 548.8 45.4
The difference between the weighted average number of shares used in the
calculation of basic earnings per share and the total number of shares in
issue at the period end is due to the net effect of time-apportioned
adjustments for shares held in treasury, shares held in trust which are not
unconditionally vested, and shares bought back and cancelled in the period.
6 Dividends
Amounts recognised as distributions to equity holders 52 weeks to 52 weeks to
in the period:
27 December 2025
28 December 2024
£m
£m
Final dividend for the 53 weeks to 30 December 2023 - 16.2p/share - 89.0
Interim dividend for the 52 weeks to 28 December 2024 - 4.9p/share - 26.9
Final dividend for the 52 weeks to 28 December 2024 - 16.3p/share 89.6 -
Interim dividend for the 52 weeks to 27 December 2025 - 5.0p/share 27.0 -
116.6 115.9
Dividends proposed but not recognised in the period: 52 weeks to
27 December 2025
£m
Proposed final dividend for the 52 weeks to 27 December 2025 - (16.9p/share) 90.9
The Directors propose a final dividend in respect of the 52 weeks to 27
December 2025 of 16.9p per share, payable to ordinary shareholders who are on
the register of shareholders at 10 April 2026, and payable on 22 May 2026.
The proposed final dividend for the current period is subject to the approval
of the shareholders at the 2026 Annual General Meeting and has not been
included as a liability in these financial statements.
Dividends have been waived indefinitely on all shares held by the Group's
employee share trusts which have not yet been awarded to employees.
7 Retirement benefit obligations
The Group operates both a defined benefit and defined contribution pension
plan. The defined benefit pension plan was closed to new entrants from
November 2012 and closed to future accrual on 31 March 2021.
(a) Total amounts charged in respect of pensions in the period
52 weeks to 52 weeks to
27 December 2025
28 December 2024
£m £m
Charged to the income statement:
Defined benefit plan - administration cost 1.4 1.9
Defined benefit plan - total service cost 1.4 1.9
Defined benefit plan - net finance charge 0.1 0.3
Defined contribution plans - total operating charge 44.7 43.5
Total net amount charged to profit before tax 46.2 45.7
Charged to equity:
Defined benefit plan - actuarial losses/(gains) 4.2 (12.7)
Total charge 50.4 33.0
(b) Other information - defined benefit pension plan
Key assumptions used in the valuation of the plan 52 weeks to 52 weeks to
27 December 2025 28 December 2024
Discount rate 5.60% 5.50%
Inflation assumption - RPI 2.90% 3.15%
Inflation assumption - CPI 2.50% 2.75%
Rate of CARE revaluation capped at lower of RPI and 3% 2.20% 2.30%
Rate of increase of pensions in deferment capped 2.50% 2.75%
at lower of CPI and 5%
Rate of increase of pensions in payment:
- pensions with increases capped at the lower of CPI and 3% 2.00% 2.15%
- pensions with increases capped at lower of CPI and 5% 2.45% 2.70%
- pensions with increases capped at lower of CPI and 5%, 3.45% 3.55%
with a 3% minimum
- pensions with increases capped at the lower of LPI and 2.5% 1.95% 2.00%
Life expectancy (yrs): pensioner aged 65
- male 85.9 85.7
- female 88.0 88.0
Life expectancy (yrs): non-pensioner aged 45
- male 86.8 86.7
- female 89.6 89.6
Sensitivities
Present value of Projected 2026 pension cost
scheme liabilities at
27 December 2025
£m
Total service Net interest Net pension
cost
(credit)/cost
(credit)/
expense
£m £m
£m
Assumption
Current valuation, using the assumptions above 797 2.4 0.4 2.8
0.5% decrease in discount rate 849 2.4 3.0 5.4
0.5% increase in inflation 822 2.4 1.8 4.2
1 year increase in longevity 821 2.4 1.7 4.1
The sensitivities above are applied to the defined benefit obligation at the
end of the reporting period, and the projected total service cost for 2026.
Whilst the analysis does not take account of the full distribution of cash
flows expected under the scheme, it does provide a reasonable approximation.
The same amount of movement in the opposite direction would produce a broadly
equal and opposite effect.
We note that the effect on the discount rate and inflation sensitivities of
flexing them down by 0.25% or up by 1% in a linear manner would give
materially correct results. The net impact of changes in conditions would
likely be offset in part by movements in the plan assets.
Analysis of plan assets
27 December 2025 28 December 2024
Analysis of plan assets Quoted market price in an active market No quoted market price in an active market Quoted market price in an active market No quoted market price in an active market
£m £m £m £m
LDI* - -
- fixed income (net of derivatives) 305.2 277.8
- investment fund 6.5 - - -
- cash** - 1.1 - 8.3
Alternative growth assets
- insurance-linked securities - 83.3 - 78.9
Commercial property funds - 159.1 - 210.2
Other secure income 69.4 82.7 113.9 107.0
Asset-backed securities 64.9 - 0.5 -
Cash and cash equivalents** 17.4 - 9.3
Total 446.0 343.6 392.2 413.7
The plan assets do not include any of the Group's own financial instruments
nor any property occupied by, or other assets used by, the Group.
*LDI - Liability Driven Investments - is a portfolio of investments chosen
with the aim that its value is expected to move in line with movements in the
value of the underlying liabilities. The LDI portfolio can include a variety
of investments, the simplest being conventional and index-linked gilts with
appropriate maturities. LDI portfolios often use a degree of leverage to
achieve the same aim but to allow more return-seeking assets to be invested in
at the same time. Derivatives and repurchase agreements are the main tools
used to employ leverage.
**During the current year the Group concluded that it was more appropriate to
show cash as an asset which has no quoted price in an active market and has
re-presented cash on that basis in the prior year disclosure
above.
Balance sheet
The amount included in the balance sheet arising from the Group's obligations
in respect of defined benefit retirement benefit plan is as follows:
27 December 2025 28 December 2024
£m £m
Present value of defined benefit obligations (797.4) (808.0)
Fair value of scheme assets 789.6 805.9
Deficit in the scheme, recognised in the balance sheet (7.8) (2.1)
Movements in the present value of defined benefit obligations were as follows:
52 weeks to 52 weeks to
27 December 2025
28 December 2024
£m £m
Present value at start of period 808.0 913.6
Administration cost 1.4 1.9
Interest on obligation 43.2 40.6
Actuarial losses/(gains):
- changes in financial assumptions (17.0) (102.7)
- changes in demographic assumptions 1.7 (1.6)
- experience 3.8 0.3
Benefits paid, including expenses (43.7) (44.1)
Present value at end of period 797.4 808.0
Movements in the fair value of the plan's assets is as follows:
52 weeks to 52 weeks to
27 December 2025 28 December 2024
£m £m
Fair value at start of period 805.9 901.0
Interest income on plan assets 43.1 40.3
Employer contributions - -
Loss on assets excluding amounts included in net interest (15.7) (91.3)
Benefits paid, including expenses (43.7) (44.1)
Fair value at end of period 789.6 805.9
Movements in the deficit during the period are as follows:
52 weeks to 52 weeks to
27 December 2025 28 December 2024
£m £m
Deficit at start of period (2.1) (12.6)
Administration cost (1.4) (1.9)
Employer contributions - -
Other finance charge (0.1) (0.3)
Total remeasurements recognised in other comprehensive income (4.2) 12.7
Deficit at end of period (7.8) (2.1)
Income statement
Amounts recognised in the income statement arising from the Group's
obligations in respect of the defined benefit plan are shown below.
Amount charged to operating profit: 52 weeks to 52 weeks to
27 December 2025
28 December 2024
£m £m
Current service cost - -
Administration cost 1.4 1.9
Total pensions cost 1.4 1.9
Amount credited to other finance charges: 52 weeks to 52 weeks to
27 December 2025
28 December 2024
£m
£m
Interest income on plan assets (43.1) (40.3)
Interest cost on defined benefit obligation 43.2 40.6
Net charge 0.1 0.3
The actual return on plan assets was a gain of £27.4m (52 weeks to 27
December 2024: loss of £51.0m).
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