Howden Joinery Group (LSE:HWDN) shares climbed 11% after the kitchens and joinery supplier posted solid first-half results, with positive trading momentum and further market share gains.
Group sales rose 3.2% to just under £1 billion, with adjusted sales up 4.3% after allowing for two fewer trading days. Profit before tax increased 4.4% to £117.2 million, while basic earnings per share rose 6.5% to 16.4p.
Gross profit margins improved by 1.3 percentage points to 62.1%, helped by earlier price increases, better purchasing, and a stronger mix of kitchens in overall sales.
The group ended the period with a robust cash position of £321.4 million and lifted its interim dividend by 2% to 5p per share.
Howdens continued its £100 million share buyback programme, having completed almost a third of the planned repurchases by the half-year mark.
Chief executive Andrew Livingston said the group remains on track to meet its outlook for 2025 and is well placed for the crucial second-half trading period, highlighting strong product innovation and ongoing investment in growth initiatives.
Broker Stifel said: "It is reassuring to see Howden continuing to make progress even in a sluggish market.
"Howden remains a high-quality compounder with decent exposure to UK RMI recovery - winning back volumes and margin lost in the cycle could see earnings 40% higher."
The shares rose 89p to 924.5p.