Howden Joinery FY revenues grow, sets out £100m share buyback

(Sharecast News) - Trade kitchen supplier Howden Joinery said on Thursday that group revenues had grown in the year ended 27 December, supported by progress in both its UK and international operations and further gains in market share, leading it to launch a new £100m share buyback programme. Howden Joinery said group revenues rose 4.1% to £2.42bn, with UK sales up 3.8% as balanced pricing and volumes helped offset ongoing kitchen‑market headwinds, and international revenue 13.5% higher, reflecting continued development of the firm's model in France and the Republic of Ireland.

Gross margins improved by 110 basis points to 62.7%, helped by revenue growth and sourcing and manufacturing efficiencies that offset cost inflation, while Howden also said it had delivered £41m of productivity and efficiency savings across its cost base. Pre-tax profits were 5.1% higher at £344.9m, while basic earnings per share rose 7.9%.

Howden said cash generation remained strong and that it balance sheet was robust, leading it to propose a final dividend of 16.9p, taking its full‑year payout to 21.9p, and reflecting its financial position, announce a new £100m share buyback programme to be completed in FY26.

Looking ahead, Howden said its planning assumption for FY26 was that the UK kitchen market would be broadly flat year-on-year after several years of decline. It said it would continue to balance price and volume while maintaining cost discipline, adding that its model left it well positioned to capture medium‑term opportunities.

Year‑to‑date trading was said to be in line with expectations, with Howden stating that it remains on track to meet current market forecasts for FY26.

Reporting by Iain Gilbert at Sharecast.com