UK: MFI Furniture 11-week Orders Up 11% At GBP473 Mln

LONDON -(Dow Jones)-MFI Furniture said Tuesday that for the 11 1/2 weeks from 26 December 2002 to 15 March 2003, group orders were buoyant. They came in at GBP473 million, representing an increase of 18% on a total basis, and 11% on a same store basis compared to last year. In U.K. Retail, total growth in orders for the 11 1/2 weeks was 15%, consistent with the trend reported on 20 January, when total growth in orders was 14%. The like for like number of 3% includes only 50% of orders from U.K. retail stores, due to the scale of refurbishments, and hence same store orders growth of 8% is more indicative of the performance of the chain as a whole. Customers continued to respond favorably to the new format out of town MFI stores and the company expects to generate over 85% of MFI orders from new format stores by the year-end. The group also saw a strong performance in Sofa Workshop, with double digit uplifts in orders from the 26 high street outlets versus the comparable period prior to acquisition last November. Howden Joinery delivered strong double digit top line growth, with total orders up 37%, from a total of 273 depots, up 39 depots on the same point in 2002. LFL growth was 28%, reflecting the dual effects of increased customers per depot, and higher spend per customer. Hygena Cuisines, the company's French retail business, recorded a satisfactory orders performance in a challenging market. Total orders growth was 12% from 133 stores, including nine new openings in the last 12 months, with same store orders growth in local currency of 4%. Group gross margin in the period continues to be significantly ahead of last year. John Hancock, chief executive, said: "We have seen a promising start to the year, with double digit growth in orders in MFI's important Winter Sale trading period. Demand has been robust, as the new format MFI stores continue to drive uplifts in orders. "Our program of 'self-help' - refurbishing stores and adding new products like sofas and bathrooms in MFI, and new depots in Howdens - continues to deliver benefits to our customers and the business alike."