Howden Joinery - Exceptionally strong first-half performance

Davy Research
/Read Important Disclosures

As was evident in the recent upgrade of full year guidance, the Howdens business is in terrific shape. Formal interim results reveal that pre-tax profits swung by £133m compared to last year (H1 result: £119m), with the outcome also 53% above 2019 (£78m). The announcement that a share buyback (£50m) will resume is not surprising but underlines the strength of the financial position (end-H1 net cash of £476m). The group is also on track to deliver on its expansion targets this year, with around 45 new depots expected to open in the UK and France. Given the timing of the recent guidance revision, forecast changes for now are likely to be limited but further upgrades cannot be ruled later this year.