Latest news with #HowdenJoinery
Yahoo
11-05-2025
- Business
- Yahoo
Is this one of the most undervalued stocks on the London Stock Exchange?
With companies on the London Stock Exchange trading at dirt cheap prices, contrarian investors have been doing quite a bit of shopping in 2025. Among them is Alex Wright, the chief manager of Fidelity International's UK-focused funds. While most investors have been panicking about the impact of tariffs and the general cost-of-living crisis in the UK, Wright has a different view. Instead, he believes the UK's actually far more insulated against the brewing trade war and local economic conditions. So much so, he's started snapping up shares in big-ticket item retailers, including Howden Joinery (LSE:HWDN). Howden's known for its award-winning fitted kitchens. And with the firm's recent expansion into fitted bedrooms, it's arguably one of Britain's biggest players in the home renovation space. But with tax hikes by local councils, higher bills from energy and water companies, and rising internet and mortgage costs, the home renovation market isn't exactly firing on all cylinders right now. The impact of this has been reflected in Howden's latest results. While international performance remains robust, sales in the UK are basically flat as per its April trading update. Considering the company has historically posted double-digit growth, the slowdown has understandably spooked some investors. Consequently, around 20% of its market-cap has been wiped out since September. But could this be a buying opportunity? Wright's thesis is built around an incoming rebound within the home renovation market. Interest rates have steadily started coming down. That reduces pressure on all British businesses and households, and is expected to translate into more affordable bills, either through salary increases or price dips. At the same time, weaker competitors, particularly in the private sector, have been being eliminated from the market. Kitchen Love ceased trading in 2024. And both CTD Tiles and Homebase have entered into administration. That means Howden now has fewer rivals to contend with when the renovation cycle starts to ramp back up, creating opportunities to capture more market share. After all, despite the recent challenges, Howden remains a highly cash-generative enterprise. It's hard to argue with Wright's logic. Even more so considering I actually bought Howden Joinery shares back in August 2022 on a similar thesis. And so far, it's proven correct with my initial investment delivering close to 40% capital gains versus the FTSE 100's 16%. However, just like in 2022, an investment in Howden Joinery today isn't without its risks. Despite the bankruptcies, there are still plenty of competitors seeking to take advantage of the growing gap in the fitted kitchen market. At the same time, the company, despite being vertically integrated, is still reliant on a steady supply of timber. Considering an estimated 81% of timber used in the UK is imported, supply chain disruptions from expected trade wars could throw a spanner into the works. There are plenty of value opportunities on the London Stock Exchange to capitalise on right now. And all things considered, I think Howden Joinery could be one of them. So for investors seeking to snap up shares trading at a discount to their potential, this enterprise is definitely worth considering, in my opinion. The post Is this one of the most undervalued stocks on the London Stock Exchange? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Zaven Boyrazian has positions in Howden Joinery Group Plc. The Motley Fool UK has recommended Howden Joinery Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Evening Standard
28-04-2025
- Business
- Evening Standard
FTSE 100 matches longest run of consecutive gains in eight years
The biggest risers on the FTSE 100 were Entain, up 40p to 628.2p, Kingfisher, up 8.1p to 279p, Howden Joinery, up 17p to 739p, BT, up 3.95p to 171.95p, and Hikma Pharmaceuticals, up 38p to 1937p.
Reuters
08-04-2025
- Business
- Reuters
UK's Howden Joinery names Jackie Callaway as new finance chief
April 8 (Reuters) - UK-based kitchen and joinery supplier Howden Joinery (HWDN.L), opens new tab said on Tuesday that Jackie Callaway will succeed Paul Hayes as the company's new chief financial officer. Callaway, currently serving as the CFO of British thread manufacturer Coats Group (COA.L), opens new tab, is also set to join Howden as its board director on June 2. The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here. Hayes, who took on the role of Howden's finance chief in late December 2020, will step down from both his position and his role as executive director on May 30.
