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UPDATE 1-Modular kitchen maker Howden's UK depot revenue growth slows
February 23, 2017 / 7:51 AM / 10 months ago

UPDATE 1-Modular kitchen maker Howden's UK depot revenue growth slows

(Adds details, background)

Feb 23 (Reuters) - Howden Joinery Group Plc reported a slower full-year revenue growth for its UK depots, hurt by its decision to hike prices at the end of the year and weaker consumer confidence following Britain’s vote to leave the European Union.

The company, a supplier of kitchen units and joinery products to small builders, said Howden Joinery UK depot revenue rose 6.5 percent for the year ended Dec. 24, cooling from the 11.9 percent seen in 2015.

Howden, which sells more than 350,000 kitchen units a year, said total revenue rose 7.1 percent, the slowest growth in four years.

Howden has banked on consumer spending on big-ticket purchases like home improvements to drive its growth, with sales rising nearly 50 percent over the past 5 years.

However, some consumers have held back spending as the Brexit vote sent the pound plummeting and stoked inflation.

To offset cost pressures, Howden said it hiked prices towards the end of the year, and that the early signs were encouraging.

The company’s pretax profit rose to 237 million pounds ($294.9 million) from 219.6 million pounds a year earlier. ($1 = 0.8037 pounds) (Reporting by Abhijith Ganapavaram and Rahul B in Bengaluru; Editing by Amrutha Gayathri)

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