Group sales rose 8.6 per cent to£2.49 billion, with profits rising 8.9 per cent to£96 million. The highlight was the performance of the international division – excluding France – where sales were up 27.4 per cent to£462 million and profit rocketed 52.8 per cent to£20 million. Much of this came from Eastern Europe, where Kingfisher trades in Poland, Turkey and Russia.
In the UK, the trade businesses Screwfix and Trade Depot both showed strong growth, with Screwfix sales rising 23.6 per cent, driven by the roll-out of trade counters. At B&Q, however, sales fell 5.8 per cent to£997 million and profits were down 12.1 per cent to£29 million.
Group chief executive Ian Cheshire blamed a combination of an early Easter and poor weather for the result. “It's clear that weather played a key role – all our sales fall came in seasonal products,” he said.
Cheshire added that the B&Q revamp programme was paying dividends and that the average uplift in a refurbished store was 13 per cent. He said that the bulk of the revamps would be completed within the next 18 months. Cheshire ruled out any B&Q store closures in the UK, saying that each of the stores made “a contrinbution to the UK, so it wouldn't make economic sense to close any of them.”
China remains a headache. Kingfisher will close five stores and downsize three others as it attempts to return the loss-making business to profitability. Further store downsizings will be taking place in forthcoming years.
Cheshire also outlined a seven-step plan, branded “Delivering Value” internally, aimed at driving profits at B&Q, exploiting trade opportunities in the UK, expanding the French and Eastern European businesses and turning around China. There will also be increased focus on increasing group sourcing and reducing the use of working capital.
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