DIY giant Kingfisher profits are bolted on by Screwfix
DIY giant Kingfisher said its £800million makeover is on track as strong demand from UK tradesmen helped it build annual profits despite cracks in its key French market.
B&Q owner Kingfisher said its £800million makeover is on track
The B&Q owner, a year into a five-year plan to lift annual profit by £500million by overhauling its sourcing and digital operations, reported a 23.2 per cent rise in sales to £1.3billlion at its Screwfix chain as plumbers and electricians bought power tools and workwear.
It opened a further 60 Screwfix outlets to take its total to 517, with a 700 target.
B&Q sales dropped 3.3 per cent to £3.68billion after store closures, but its UK business overall delivered a 9.9 per cent rise in retail profit to £358million as same-store sales jumped by 5.9 per cent.
It has been a very productive year
Kingfisher said it had seen no big change in consumer spending despite concerns over a tightening of household budgets, and welcomed the likely increased competition from Homebase, which is itself undergoing a makeover under new Australian owner Bunnings.
But its shares fell 17½p to 328p on prospects for its Castorama and Brico Depot in France, where like-for-like sales were down 2.7 per cent.
Group adjusted pre-tax profit was up 8.3 per cent to £743million.
Kingfisher reported a 23.2 per cent rise in sales at its Screwfix chain
Chief executive Veronique Laury said: “It has been a very productive year, delivering sales and profit growth alongside delivering the key first year strategic milestones of our ambitious five-year transformation plan.
“We have learned a lot and are aware of the challenges. We are set up for next year and beyond.”
Kingfisher said it had seen no big change in consumer spending
But she warned: “The EU referendum has created uncertainty for the UK economic outlook and we remain cautious on the outlook for France, especially in light of the forthcoming presidential elections.”
ETX Capital senior market analyst Neil Wilson said: “The good news for UK plc is that trade-focused Screwfix brand is delivering excellent sales growth and this suggests plumbers, electricians and other trades are busy building despite the uncertain economic outlook.”