Howden spend pays off for MFI

FURNITURE group MFI is reaping the rewards of a three-year investment programme in its unglamorous Howden Joinery division.

Sales in the division jumped more than a third to £181m for the half-year to 14 June. MFI's oversall sales rose 17% to £708m, and profits climbed 19% to £54.5m, in the middle of forecasts. That was before a one-off gain of £4.8m on property disposals.

Chief executive John Hancock said the main UK furniture business is likely to emulate Howden's growth, as it moves into the second stage of its Conran-style makeover. Another 50 of MFI's 200 stores are due for conversion by the end of 2004, on top of the 100 already refurbished.

'We get an additional 25% on sales from converted stores, with pre-tax profit on sales moving up from 4% to 9%,' Hancock said.

Turnover from MFI's UK furniture retail division rose 10.5% to £469m with same-store growth up 17%. Like-for-like sales in the division for the four weeks to 19 July rose 23%.