Kitchen supplier Howden Joinery shares fall as UK sales growth slows

(Reuters) - Howden Joinery Group Plc (HWDN.L) shares fell more than 9 percent after the kitchen supplier posted a slowdown in revenue growth in its UK market for the second half of the year.

Many recent surveys have suggested that Britain's consumer confidence has been marred by the uncertainties around its impending exit from the European Union.

Howden Joinery, which sells more than 350,000 kitchens a year, said total revenue from its UK depots unit in the second half of the year to October 29, grew by 4.1 percent, cooling from the 9.1 percent seen in the first half.

The company attributed the slower rise in revenue to softer trading conditions seen in recent months, but did not explicitly link the slump to Britain's referendum vote of June 23.

However, market research firm GfK said consumer sentiment fell for the first time since the immediate shock of the Brexit vote in September. A similar survey by polling firm YouGov showed the weakest confidence since July and households' view of their finances showed the biggest deterioration since December 2014.

Howden Joinery, founded in 1995, has banked on consumer spending on big-ticket purchases like home improvements to drive its growth. Over the past 5 years, company's sales have risen nearly 50 percent.

Davy Research analysts said UK consumers were holding back on big-ticket purchases, adding that Howden was not immune to recent softening in the underlying market.

The brokerage has a "hold" rating on the company's stock and a target price of 380 pence.

Shares in Howden were down 4.8 percent at 363.5 pence at 1153 GMT, making them one of the worst performers on the FTSE midcap index. (.FTMC)

(Reporting by Rahul B in Bengaluru; Editing by Shounak Dasgupta)