Published on 10 - March - 2011
Expansion set for Howdens Joinery after "outstanding" 2010Howdens Joinery announces plans to expand to 650 depots after strong 2010 performance.
Chief executive Matthew Ingle
UK revenue rose 5.1% to £795.1m for the year to December 25, 2010, while profit before tax soared to £100.9m, an increase of £32.2m on last year.
A continued focus on selling prices and purchasing costs has also seen gross profit margin rise by more than 6% in the last two years, said the company.
Gross profit across the group, which includes ten French depots and French kitchen retailer Hygena Cuisines, rose by £50.9m to £483m.
Chief executive Matthew Ingle said: "Against a tough economic backdrop, Howdens has produced outstanding results for 2010, reflecting the efforts of all our staff, and our unique and robust business model.
"The performance of all aspects of the business has underlined our assessment of the scale of the opportunities before Howdens. Along with the continued strength of the business and its resilient financial performance, these provide the foundations for us to increase our investments in the long-term growth of the business."
Investment was already stepped up in 2010, with 27 new depots opened during the year, bringing the total to 489. More than 180 additional staff were hired in existing depots, and £12.3m was invested in operating costs to support growth. The company also increased new product introduction and brand advertising.
Looking to this year, the group "remains committed to its view that the number of depots in the UK can be increased to at least 650 in the longer term", said the report. Around 30 depots are planned to open during the course of 2011.
However, Mr Ingle said he remains cautious about the outlook for this year, and expects market conditions to remain "challenging". He added: "As in recent years, we will continue to adapt our business model to the market and economic conditions we encounter."
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