GFRM Galiform

 

TIDMGFRM 
 
RNS Number : 9870K 
Galiform PLC 
29 April 2010 
 

                                  Galiform Plc 
 
                          INTERIM MANAGEMENT STATEMENT 
 
Galiform Plc, the owner of Howden Joinery, is today publishing its Interim 
Management Statement covering the year to date.  Financial information is in 
relation to the first four trading periods of 2010 (ending 17th April). 
The Board is pleased to report that the business has performed well after the 
slow start to the year that arose from prolonged cold weather.  In addition, 
further 'legacy' property agreements have reduced future liabilities by more 
than GBP18m. 
Trading 
In the first four periods (16 weeks) of 2010, Howden Joinery UK depot revenue 
(1) was up 1.0%, increasing 0.5% on a same depot basis.  This performance 
reflects the previously reported impact of the cold weather seen in the first 
two periods of the year (to 20th February).  Since then, trading has returned to 
more stable conditions, with total sales increasing by 4.9% in the most recent 
two periods.  This year-on-year improvement was in line with that seen in the 
last quarter of 2009. 
We are seeing the impact of the weakening of the pound against the US dollar and 
other input cost pressures.  However, we continue to look for sourcing 
opportunities to offset these cost pressures, where possible.  In addition, we 
continue to focus on gross margin in all of our depots and have recently 
introduced a small price increase, although it should be noted that the price 
increase has only been in place for a short period and that over 70% of annual 
turnover typically occurs in the remainder of the year.  Overall, the Board is 
satisfied with the Group's gross margin performance. 
Legacy properties 
The Group continues to manage proactively its 'legacy property' portfolio. 
Since the release of our 2009 Preliminary Results, agreement has been reached 
with landlords of three properties that will further reduce Galiform's financial 
exposure.  These transactions involve Galiform making cash payments to the 
landlords of these properties totalling GBP4.3m, in return for being released 
from all obligations in respect of the leases.  In so doing, future liabilities 
of over GBP18m have been mitigated.  This reduces the number of legacy 
properties to 51, the current net annual rent and rates of which total 
approximately GBP16.5m. 
Depot openings 
With five depots having been opened so far this year, Howden Joinery is now 
trading from 467 depots. 
 
There have been no material changes to the financial position of the Group since 
the end of the 2009 financial year. 
. 
 
Half Yearly Report 
Galiform will release its 2010 Half Yearly Report on 21st July 2010. 
 
 
Enquiries 
 
Investors/analysts: 
 
Gary Rawlinson 
Head of Investor Relations                  +44 (0)207 535 1127 
                                                            +44 (0)7989 397527 
 
Media: 
 
Brunswick                                            +44 (0)207 404 5959 
      Kate Holgate 
      Wendel Verbeek 
 
(1)   Week 1 sales excluded because of distortion arising from New Year's Day 
falling on different days of the week (Thursday in 2008, Friday in 2009) which 
meant there was no trading in the first week of this year (2009: GBP0.8m). 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 IMSIPMATMBATBBM 
 

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