Howden Joinery reiterates guidance following solid quarter

Kitchens outfitter Howden Joinery reiterated its full-year expectations on Thursday as it turned in a solid trading performance from the second quarter of its financial year, including the all-important October-November period.

Total revenues increased 7.5% year-on-year in its 17 June to 3 November trading period, or up 6.1% on a same depot basis, as a result of volume growth. This was down from the first quarter's 14.8% growth, or 13.3% on a same deposit basis.

Howden, which expects to add a total of roughly 33 depots across the UK in 2018, also revealed that gross profit margin performance throughout the period had "developed in line with management expectations".

The FTSE 250-listed group noted that with its most recent period ending on 3 November, receipts for the period could possibly fall into the 2019 financial year, leading it to expect an additional working capital outflow of up to £50m at the end of its current trading year.

Lastly, Howden, which has acquired 5m shares since July 2018 and a total of 12.8m shares in 2018, has now completed its £80m buyback programme announced in February 2017 and half of its £60m programme announced on 1 March 2018.

As of 0830 GMT, Howden shares had edged forward 2.97% to 485.80p.