DAVY VIEW

Howdens’ trading update has indicated that pre-tax profit for this year is likely to be towards the lower end of the forecast pre-tax profit range. This suggests a likely cut of 3-3.5% to the existing consensus forecast. Comments in relation to the outlook for next year are also noticeably cautious, while an annualised £18m cost hit due to the recent UK Budget has also been flagged. This suggests downside risk to 2025 estimates, which highlights that even Howdens is struggling to generate positive momentum due to the persistently challenging operating backdrop in the UK.