Price rises and continued post-lockdown demand boost Howden Joinery

Shares in the kitchen, joinery products and hardware supplier edged higher on Monday morning after it reported "strong sales and profits" over the year to October 31.

The group has sites in the Black Country and at Cannock, Kidderminster and Telford.

"As a result of the recent exceptionally strong trading performance, the company now expects full-year 2021 profit before tax to be around the top end of current analyst forecasts," Howdens said.

Bosses at the home improvement business said they are confident in the group's long-term business model but stressed that they expect "a more normalised trading pattern and performance" next year as the post-lockdown boom in demand calms.

The company said it is "watchful" of current economic uncertainties, including the potential impact of ongoing disruption to global supply chains and cost inflation.

Howdens said revenues were buoyed by the firm passing on the impact of cost rises to its customers through its selling prices earlier in the financial year.

It added that its latest sales growth was driven "principally" by higher sales volumes as well as "price rises".

The business reported that its UK depots saw revenues increase by 20.8% over the period from June 13 to October 30, compared with the same period last year.

It highlighted "strong demand and a high level of stock availability" after managing the firm's supply chains to deal with peak demand at the end of the period.

Meanwhile, the group reported UK revenues for the past year were 37.7% higher than last year, which had been impacted upon by pandemic restrictions, and 28.3% ahead of 2019.

Shares were 0.4% higher at 921.5p in early trading.