Howden has delivered another solid trading performance in H2, all the more stand-out this time given the weak trading patterns and deferred spending trends being reported in adjacent consumer sectors due to declining consumer confidence and negative real wages. LFL depot growth of c5-6% was better than many feared and reflects the benefits of innovation/new ranges as well as, we believe, a greater emphasis on driving volume (over price) than earlier in the year. Although 10% of sales are yet to be booked, this performance secures forecasts for FY17 and means it is on track to meet the ‘Board’s expectations’. Although trading conditions are likely to be tough in FY18, meaning today’s update wont eradicate all investor concerns, we would expect to see a relief bounce in the shares today.
