Galiform's new depots help it to better profits

Kitchen supplier Galiform today posted a four-fold increase in first-half profit, helped by depot openings and better margins.

The owner of Howden Joinery, which supplies kitchen units to small builders from 478 sites, said it made an underlying pre-tax profit of £21.6 million in the 24 weeks to June 12, up from £4.7 million a year ago.

Revenue increased 2.5% to £324.7 million, with sales at Howden depots open over a year also up 2.5% and gross margins up four percentage points to 58.1%.

Galiform, which emerged from the old MFI Furniture business, has opened 16 depots so far this year, in line with its plan to open 20 to 30 over the year.

It added that Howden's revenue increased by 5.7% in the first month of the second half.

The firm said it has traded well in its second half so far.

"We remain cautious about the economic environment, however, and will continue to manage the business in the light of economic conditions," said chief executive Matthew Ingle.