Howden considers restarting dividends after trading improves

Howden Joinery said it was considering restarting dividends as the company reported improved trading after the first Covid-19 lockdown.

The FTSE 250's trading was disrupted by the Covid-19 shutdown in the first half of the year and it scrapped its interim dividend but business has picked up significantly, Howden said in a trading update.

Total UK revenue since mid-June increased 12.3% and by 10.1% on a same-depot basis, the kitchen and building products maker said. For the year to date, total UK revenue fell 6.8% from a year earlier.

Howden's French and Belgian depots total revenue in the same period rose by a third and by 25.4% on a same depot basis. Total revenue for the year to date rose 7.9%.

"Subject to the company's trading performance and financial position continuing to meet the board's expectations and there being no further significant disruption due to Covid-19 or otherwise, the board will consider recommencing payments of dividends with the announcement of Howden's 2020 full-year results in February 2021," the company said.

Howden said it would repay £22m of government support received from the jog retention scheme before the end of the year and about £8m of business rates waived by local councils.