Trade-focused kitchen supplier Howdens became a £2 billion company in 2021, results just published revealed.
The 778 depots operated by the FTSE 250-listed firm generated sales of £2.1 billion as longer time spent in the home saw householders invest while new builds burgeon.
Pre-tax profits of £390.4 million were up 110 per cent on 2020, a year dominated by major Covid shutdowns, and 49 per cent on 2019 - a period marred by Brexit uncertainty for big ticket retailers.
Read more: Sheridan Fabrications acquired by national kitchen supplier Howdens
Howdens is now eyeing up 1,000 outlets, with the East Yorkshire firm continuing to build a third of its products at the Howden base near Goole, and in Runcorn, Cheshire, with administrative headquarters now in London.
Andrew Livingston, chief executive, said: “2021 was a very successful year for Howdens as we both delivered record financial results and progressed our strategic plans for the business. Our performance demonstrates the strength of our trade only, in-stock local business model and our ability to meet heightened demand for our products.
“I would like to express my thanks to our 11,000 employees for their dedication and commitment to delivering outstanding service to our customers against a continued backdrop of Covid-19 and supply chain challenges.
"We believe there is now potential for at least 950 depots in the UK and we are expanding our presence in France and the Republic of Ireland. We continue to invest in our depot network, market-leading products, manufacturing and supply chain, and digital capabilities, all of which improve service to our customers and help us take advantage of market opportunities. Our robust balance sheet gives us the flexibility to continue to invest in our growth plans for the business at the same time as delivering enhanced returns to shareholders through ordinary dividends and share buy-backs."
The year saw 31 new depots in the UK, with 10 in France, while 17 new kitchen ranges were introduced, with strong growth in the higher end of the market.
Mr Livingston said capital expenditure investment is expected to be around £100 million in 2022, up from £90 million.
An additional one-off investment of £10 million has been flagged for freehold land by the East Yorkshire site to support investments in additional manufacturing capacity.
He added: “While it is still early in the new financial year, we have, at present, the momentum for another successful year in 2022 and the plans in place to deliver one.”
A 15.2p dividend has been proposed, while a £250 million share buy-back has been announced, having completed an earlier £50 million run.
Shares were up 5.7 per cent in early trading, settling to almost 4 per cent for a company first launched as an MFI division back in 1995.
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