Key takeaways:
Founded in 1995, Howdens is the number one trade kitchen supplier in the UK. The company has ~800 depots in the UK and ~50 in France and Belgium combined. Howdens is a trade-only business serving local builders with a focus on high product availability, generous trade credit terms, and high depot density to save builders time and money completing jobs.
Howdens is vertically integrated and manufactures all worktops and ~30% of frontals in the UK. Depots are located on inexpensive industrial real estate and only require £350k capex and £350k of inventory cost to open. At maturity, each depot earns ~£2m in revenue and ~20% EBITDA margins.
Howdens has compounded FCF per share over 12% for 20 years and consistently earns ~50% ROIC. The company’s founder stepped down in 2018 and the Former Screwfix CEO now runs the business. Howdens believes they can reach 900 depots in the UK and is now expanding to France and Belgium which is the potential growth opportunity.
Scott has 9 years experience in the UK Kitchen market. He started his career launching B&Q's kitchen to compete with Howdens before joining Wren Kitchens on the retail side. He also ran Wickes' kitchen and bathroom offering and is no the National Retail Manager at TKC, a leading UK kitchen supplier.
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Scott has 9 years experience in the UK Kitchen market. He started his career launching B&Q's kitchen to compete with Howdens before joining Wren Kitchens on the retail side. He also ran Wickes' kitchen and bathroom offering and is no the National Retail Manager at TKC, a leading UK kitchen supplier.