Kitchen giant Howdens has achieved double digit growth on its milestone smashing £2 billion turnover year.
The FTSE-listed joinery specialist, which since the year end has opened huge expansion in its East Yorkshire home town, generated sales of £2.3 billion in 2022, 10.8 per cent ahead of 2021.
Pre-tax profits topped £400 million, up 4 per cent, with margins maintained. A total of 30 new UK depots were added, taking the total to 808, with 20 more in France and five in Ireland in the period. It also acquired premium work surface producer Sheridan Fabrications in February for £25 million. Howdens was also named as one of the top 10 large companies to work for.
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Andrew Livingston, chief executive, said: “Howdens delivered a strong performance in 2022, with good progress on executing our strategic priorities and further market share gains. During the year our teams have been adept at navigating the challenges of high inflation and supply chain disruption, while supporting our customers with a market leading product range, high stock availability and outstanding customer service.
"Our markets are large and fragmented which gives us a long-term opportunity for growth. In response, we are continuing to expand our depot network, improve our product range, optimise our manufacturing and supply chain, and develop our digital capabilities. We see potential for around 1,000 depots in the UK and we are now selectively expanding our business model internationally in France and the Republic of Ireland.
"Our robust financial position underpins our strategy, funding investment in our growth initiatives, expanding our manufacturing and supply chain capabilities, and supporting ongoing cash returns for shareholders."
The start of this year saw the official opening of the multi-million pound expansion, with 100 new jobs created in Howden. 'Heartland' sees production of high gloss cupboard door frontals onshored from Italy. The new line, which is more than a kilometre long, is one of the largest of its type in Europe.
Sales are already up 6.1 per cent year-on-year in the UK, with a near 20 per cent increase at international depots, with new openings factored in. Profit expectations had been lifted ahead of year-end for 2022 after a record-breaking autumn trading period. The first few weeks of the current year have been described as “encouraging” despite a price increase to cover rising input costs. With 23 new ranges to launch, there is a focus on entry level and mid-priced kitchens.
Mr Livingston added: “While mindful of ongoing macroeconomic uncertainty, we are investing in the business for the long term and the fundamentals of our business model remain robust and attractive.
“Howdens is in good shape and we are well prepared to address the opportunities and challenges ahead in 2023.”
Now headquartered in Marylebone, London, the company also has further manufacturing in Runcorn, Cheshire.
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