Howden Joinery Group - Fundamental Investment Case

Howdens Joinery Group is a UK kitchen wholesaler and distributor.

• Howdens Joinery is the UK’s largest manufacturer and supplier of fitted kitchens,  appliances and joinery products. The company sells over 400,000 kitchens per year and has over 6,000 kitchen related SKUs.
• It  operates  653  depots  in  the  UK  that  sell  to  small  builders  and  contractors.  The  company has minimal exposure to Europe with 24 depots on the continent.
• Each  depot is  set  up more as  a warehouse.  Locations  average  around 10,000 square feet with approximately 90% of the space used to store inventory and only 10% for  selling.
• Howdens Joinery has a unique business proposition targeting tradesman and builders. The company does not sell direct to the consumer.  Howdens Joinery states this allows  them to operate with a much lighter asset model.
• Howdens  Joinery  uniquely  ties  the  financial  outcomes  of  the  depots  to  local management. The company gives each depot manager a cut of profits.