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Howden Joinery gains as it flags up good trading performance in important October/November period

The fitted kitchens manufacturer said total revenue from its UK depots' increased by 7.5% in the period from 17 June 2018 to 3 November 2018, with a 6.1% rise on a like-for-like basis
Fitted kitchen
Howden's said the increase in revenue was driven mainly by volume growth, with its gross margin performance in line with expectations

Howden Joinery Group PLC (LON:HWDN) saw its shares rise on Thursday after the fitted kitchens manufacturer flagged up a good trading performance in the important October/November period.

In a trading update for 17 June 2018 to 3 November 2018, the FTSE 250-listed firm said its total revenue from its UK depots' increased by 7.5%, with a 6.1% rise on a like-for-like basis.

READ: Howden's 2018 share price surge prompts downgrade to 'hold'

The group said the increase in revenue was driven mainly by volume growth, with its gross margin performance during the period in line with management expectations.

Howdens said it expects to add a total of about 33 depots in the UK in 2018, taking the total number of depots in the UK to around 694.

The group expects an incremental cost in the second half from the increase to its previously announced depot rollout programme, and sees an additional working capital outflow at the end of financial year 2018 of up to £50mln.

The company said it remains on track to meet the board's expectations for the full year and added it expects to release its 2018 preliminary results on 28 February 2019.

In late morning trading, Howden’s shares were 2.7% higher at 484.40p.

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Howden Joinery Group Timeline

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