NEWS | Round-up


Another record for Howdens as sales keep on growing


TRADE KITCHEN giant Howdens has reported further sales growth since its record-busting first half results this summer.


In the first half of 2022, total sales hit £913 million, up 16.3% over 2021 and 40% on 2019. Its trading statement for the period from June to October shows that upward trajectory is continuing with UK sales up 6.6% over the same period in 2021 and up 44.7% compared with 2019. The figures from Howdens for the year to date are up 10.4% over 2021 and 41.6% up on 2019. International sales, however, did even better, with sales in the June to


October period up 24.5% and virtually doubling (+95.4%) over 2019. How dens operates depots in France and Belgium.


Commenting on the update, chief executive Andrew Livingston said: “Howdens achieved a record performance in our important peak trading period. We continued to gain market share supporting our customers with a strong product line-up, high stock availability and outstanding service. Trade customers have remained busy into the autumn with a good pipeline of work, as consumers continue to invest in and improve their homes. Our kitchen and


joinery markets are large and attractive, and we are prioritising investment for future growth.”


The update statement said that despite the current economic uncer- tainty, the group is expecting profits before tax to be marginally ahead of the average published analyst consensus for 2022, which ranges from £373m to £410m.


In the period concerned, Howdens opened 17 new depots in the UK, 13


in France and has refurbished 64 of its older stores. It also introduced 23 new kitchen ranges for 2022.


The company said that it was continuing to invest in its manufacturing and supply chain and signed a new agreement in September for a £150m five-year revolving credit facility. In 2021, Howdens reported a total revenue of £2.1 billion and pre-tax profits of £390m. Full-year results will be announced on February 23, 2023.


BC Designs invests £250,000 to cut lead times to retailers by half


BATHROOM MANUFACTURER BC Designs has invested £250,000 in its manufacturing operation, which it says will cut product lead times by more than half.


BC Designs says that this latest investment will increase productivity and output in its factories by 40% through increases in employee headcount and raw material storage capacity.


First talks to find investor for Rational


THE FIRST constructive talks have taken place to find an investor for German kitchen manufacturer Rational.


The company filed for insol- vency proceedings on September 16 at the local court of Osnabruck and Stefan Meyer of Pluta Rechtsanwalts GmbH was appointed as provisional administrator.


The latest statement from the administrator said: “The company is currently still delivering a few kitchens that have already been produced. The IT problem will not be completely solved for technical, time and financial reasons. We are currently actively looking for one or more potential investors who are interested in producing and selling kitchens under the Rational brand in the future. The first constructive talks have already taken place.”


Rational took the decision to file for insolvency because of a technical issue with its computer server system. An email Rational sent out to its retailers on Friday, September 15 said: “At the beginning of this week,


4


we informed you that significant parts of our server system were damaged by a regional power failure in such a way that we are currently not able to continue processing orders, nor can we forward data on existing orders to production.


“After checking by our IT department and external specialist companies, it takes at least four to six months to rebuild the data. This means that we are currently unable to make any statement as to when production of the kitchens, the components or the missing parts can be resumed.” An official statement from Rational said it was its firm intention to “preserve the business, avoid liquidation and, as soon as possible, find a solution that will keep the company going”. The insolvency proceedings are intended as a way to “motivate the current owners and encourage all suitable domestic and international strategic investors, as well as interested financial investors, to take over the company in spite of the very difficult situation and guide it towards a good and stable future”.


In 2021, BC Designs reported its best sales year ever, with a 30% increase in turnover and a “notable rise in profits”, which it pledged would be reinvested. The company said that the improvements to its manufacturing capabilities, along with a new warehouse that will double its storage capacity, will help it improve its service to customers and cut product lead times by more than half. Commenting on the company’s latest investments, BC Designs managing director Darren Allison said: “We took the decision at the start of the year to diversify our product portfolio, launching new collections and ranges in both furniture and ceramics. The industry has fully embraced this move and we’ve seen both new and existing clients buying into our new direction. “To better service this, and our heritage in the bath market, we have significantly invested in our manufacturing and storage facilities. The industry as a whole is in desperate need of shorter lead times, and our investment will mean we are able to better service this demand.”


Allison also spoke about the company’s sustainability goals going forward: “This is just one area we’re looking to invest in, along with further on-trend products and our commitment to moving towards being carbon neutral. 2023 is shaping up to be our best year yet.”


· December 2022


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80