HOWDEN JOINERY GROUP PLC Annual Report and Accounts 2022
Howden Joinery Group Plc
Available through the Trade only
Overview / Contents
01
Howdens - UK's #1 specialist trade-only kitchen supplier
We make the builder's life simpler. We help them to achieve exceptional results for their customers, and to profit from it.
We succeed by helping our customers to succeed.
StrategicReport
Contents
Governance
Strategic Report
Governance
08 | Our purpose, our culture & values, our market, | 78 | Corporate governance report |
our strategy and our business model | 80 | Board of Directors | |
16 | Chairman's statement | 82 | Key Board activity |
19 | Chief Executive's statement | 84 | Executive Committee and Company Secretary |
28 | Key performance indicators | 86 | Directors' duties (Section 172(1) statement) |
30 | Financial review | 88 | Stakeholder engagement |
36 | Risk management and principal risks | 96 | 2018 UK Corporate Governance Code: |
46 | Sustainability matters | application and compliance | |
71 | Going concern and Viability statements | 102 | Nominations Committee report |
74 | Other Directors' statements | 112 | Remuneration Committee report |
136 | Audit Committee report | ||
144 | Sustainability Committee report | ||
146 | Directors' report |
Financial Statements
150 Independent auditor's report
164 Consolidated income statement
164 Consolidated statement of comprehensive income
165 Consolidated balance sheet
166 Consolidated statement of changes in equity
167 Consolidated cash flow statement
168 Notes to the consolidated financial statements
205 Company balance sheet
206 Company statement of changes in equity
207 Notes to the Company financial statements
Additional Information
212 Parent company and all subsidiary undertakings
213 Five year record
214 Shareholder and share capital information
216 Shareholder Ranges
216 Corporate timetable
217 Advisors and registered office
Howden Joinery Group Plc / Annual Report & Accounts 2022
FinancialStatementsAdditionalInformation
Performance in 2022
Financial highlights
Revenue
£2.3bn
2018
Gross margin 60.9%
2019
61.7% £1.5bn
2019
62.3% £1.6bn
2020 2021 2022
60.1% £1.5bn
61.6% £2.1bn
60.9% £2.3bn
2018
2020 2021 2022
Operating profit £415m
2021 2022
Earnings per share 65.8p
24.9p £196m
2018
31.3p £240m
2018
2019
35.0p £260m
Profit before tax £406m
2020
2019
53.2p £402m
65.8p £415m
20.6p
11.6p £239m
2018
2022 FY dividend
2020
2019
3.9p £261m
2020 2021 2022
18.2p £185m
19.5p £390m
20.6p £406m
2021 2022
2018
2019
2020 2021 2022
"Howdens achieved another set of strong results in 2022, with rapid progress on executing our strategic priorities and continued market share gains.
Our teams have been agile in navigating high levels of inflation and supply chain disruption while supporting our customers with a market leading product range, high stock availability and outstanding customer service."
Andrew Livingston - CEO
Net cash at year end £308m
2020
£115m
Dividends paid in year
2018
£68.3m £231m
2019
£70.6m £267m
£0.0m £431m
2021 2022
£133.6m £515m
2018
2019
2020
2021* 2022
* 2021 included a special dividend of £54.1m.
Share buybacks £250m
£131m
2018
£126m
2019
2020
£10m
2021
£50m
£250m
2022
£115.0m £308m
Howdens at a glance
The UK's largest specialist trade-only kitchen supplier
Global sourcing
Resources and relationships
• Global supply chain expertise
• Trusted supplier relationships give us access to the latest products at the best prices
• Responsible purchasing practices
UK manufacturing & distribution
Resources and relationships
• Skilled and motivated workforce
• UK's largest kitchen supplier - economies of scale
• Our own factories - the choice to make or buy
• Our own warehousing and distribution network
Nationwide depot network
Resources and relationships
• Decentralised business model
• Empowered local depot managers, close to the trade
• Trusted customer relationships with around half a million builders
• Local depot network with a nationwide reach
• The right product. In stock in local depots at best local price
To supply from local stock nationwide the small builder's ever-changing, routine integrated kitchen and joinery requirements, assuring best local price, no-call-back quality and confidential trade terms...
Overview / Howdens at a glance
... and to provide the builder's customer with enough choice, advice and aftersales to make a home to be proud of.
Supporting the builder
05
StrategicReport
Worthwhile for all concerned
Resources and relationships
• Trade-only, with excellent service
• Helping our trade customers to succeed in selling to their customers:
- Trade accounts support the builder's cashflow
- Design and planning services
- Home visits for end-users
- Marketing materials
- The right product. In-stock in local depots
• Competitive confidential pricing
• Digital tools to help the trade and end-users
Outcomes
• Happy builders and end-users
• Sustainable profit growth, sector-leading margins and strong cash generation
• Returns to shareholders
• Investment in:
- our employees
- new depots
- new product
- new manufacturing and logistics
- digital
- new jobs throughout our business
• Giving back to local communities
Howden Joinery Group Plc / Annual Report & Accounts 2022
GovernanceFinancialStatementsAdditionalInformation
Strategic report
How we create value
Risk management and principal risks
Our approach to risk and how we manage it. Our principal risks and what we're doing to mitigate their potential effects.
1 Identification
Functional management and leaders formally identify risks twice a year providing both a bottom-up and a top-down perspective. We record these in functional risk registers for each area of our business. We also conduct ad hoc reviews of new and emerging risks throughout the year as they arise.
4 Monitoring and reporting
We provide a consolidated key risks report to the Executive Committee and Board for review, using escalation criteria previously set by them. Mitigation plans and the progress against them are also reported. The Board consider and agree the key risks, appetites and mitigation strategies which are fed back to risk owners. We conduct this exercise twice yearly and it is used to determine the Group's principal risks.
Sustainability report
Why sustainability matters to us.
2 Assessment
We assess risks using a Group-wide scoring mechanism that considers both the likelihood of occurrence and the potential impact. We prioritise them by their risk score and an assessment of the level of exposure against our risk appetite is conducted. Risk that exceed our appetite may require additional risk response.
3 Response
Risks that require a response have additional mitigation strategies agreed and a future action plan drawn up together with a timeframe. We assign responsibility for implementation of action plans.
08 Our purpose, our culture & values, our market, our business model and our strategy
16 Chairman's statement
Strategic report / Contents
19 Chief Executive's statement
28 Key performance indicators
30 Financial review
36 Risk management and principal risks
46 Sustainability matters
71 Going concern and Viability statements
74 Other Directors' statements
Howden Joinery Group Plc / Annual Report & Accounts 2022
07
FinancialStatementsAdditionalInformation
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Howden Joinery Group plc published this content on 29 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 March 2023 07:25:07 UTC.
