East Yorkshire kitchen giant Howden Joinery Group has posted record results in the first half of the year.
Sales are 16 per cent up year-on-year and 40 per cent ahead of pre-Covid levels, with profits also up 20 per cent.
And the FTSE-listed firm, with its huge manufacturing headquarters near Goole with huge expansion plans progressing, believes it has significantly underestimated the size of the kitchen and joinery markets it operates in,revising its addressable market figure to double that previously relied upon - from £6.5 million to £11 million.
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Andrew Livingston, chief executive, said: “Howdens delivered a strong financial performance in the first half, well ahead of pre-Covid levels in 2019, as we continued to manage effectively ongoing inflationary and supply chain pressures. Our sector leading service and well-established and focused growth strategy ensured we continued to outperform the market. Our kitchen and joinery markets are large and attractive and we are prioritising investment in future growth through execution of our strategic initiatives.
"Howdens has good momentum going into the second half of the year which includes our all-important peak trading period. We will continue to manage inflationary pressures according to market conditions to achieve the right balance between pricing and volume. We are confident in our resilient business model while recognising that we will be trading against record revenue comparatives. While watchful of market conditions and consumer sentiment, the group remains on track with its outlook for the full year."
Last year saw Howdens pass the £2 billion turnover mark, with 2021 seeing sales of £2.1 billion achieved.
First half results for 2022 saw revenues at £913 million compared to £784.9 million.
A total of 10 new depots have opened in the UK, taking the total to 788, with 34 revamped in the period, as well as seven new outlets in France and one in Ireland.
Cross docking centres have also been rolled out to ensure product availability for around 530 stores, while there has been further investment in manufacturing. New frontal lines and a second architrave and skirting line at the Howden factory will be operational in the second half of the year, while it has underlined continued investment in upgrading solid surface worktop capabilities alongside greater capacity.
The company employs more than 11,000 people, with hundreds in the town it takes its name from, with a second manufacturing plant at Runcorn, Cheshire.
Mr Livingstone said Howdens is making good progress on strategic initiatives and will continue to invest and bring forward some capital investments. Guidance on that spens has increased by £20 million to £130 million, including the previously announced £10 million purchase of additional land at the Howden manufacturing site.
A total of 19 new kitchen ranges have also been introduced “with more emphasis on higher priced kitchen ranges and ensuring our most popular styles are accessible to all budgets”.
Early trading saw the share price increase 2.4 per cent to 644.2p (10am).
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