(Adds details, analyst comments, update share price)
May 1 British kitchen supplier Howden Joinery
Group Plc reported an 11.2 percent rise in UK revenue
in the first 16 weeks of the year, helped by stronger consumer
spending and a recovery in the housing market.
The company said like-for-like revenue for outlets open more
than a year increased 8.5 percent, which helped its stock rise
4.6 percent on Thursday morning.
Howden Joinery said it had opened six new depots in the UK
since the beginning of the year, taking its total to 565 depots.
It plans to open another 30 new depots this year.
Howden Joinery sells kitchens and joinery products to
kitchen shops who install them for landlords, local authorities,
housing trusts and developers.
"We believe a more buoyant market is leading to increased
stickiness of Howden's price rise as builders increasingly
favour, and are happy to pay for, Howden's products," UBS
analyst Catriona O'Grady said in a note.
The company has benefited from government initiatives to
stimulate the UK housing market, with a survey by Hometrack
suggesting housing investment would continue to boost British
Shares in the London-based company hit a high of 340 pence
before easing back to 333 pence at 0919 GMT on the London Stock
(Reporting by Aastha Agnihotri in Bangalore; Editing by Robin