Howdens has set out plans to up its depot count in the UK to 950, after achieving a year of record financial results.
The kitchen supplier, which operates 778 depots, said it had identified the scope for increasing this to 950, including around 25 in Northern Ireland. It aims to open about 25 depots this year.
Capital expenditure investment is expected to be around £100m this year, including investment in strategic initiatives. There will also be an additional one-off £10m investment in acquiring freehold land to grow its manufacturing capacity.
Howdens opened 31 locations in the UK in the year ending 25 December. It also revamped 62 older depots, with 210 trading in a new format by the end of the period. Including relocations, it plans to overhaul around 70 more depots in 2022.
It also invested in regional cross-docking facilities during the period, with six operating at the end of the period, supporting around 400 depots.
The manufacturer’s group revenue grew by 35.3% year-on-year to £2.1bn.
Operating profit stood at £401.7m, more than double the previous year and 54.5% ahead of pre-pandemic levels. Profit before tax was £390.3m, compared with £185m in 2020 and jumping by 49.7% from its equivalent in 2019.
Andrew Livingston, chief executive of Howdens, said: “We believe there is now potential for at least 950 depots in the UK and we are expanding our presence in France and the Republic of Ireland.
“We continue to invest in our depot network, market leading products, manufacturing and supply chain, and digital capabilities, all of which improve service to our customers and help us take advantage of market opportunities.”
To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews
