Kingfisher UK & Ireland reports 1.1% LFL rise in 2013/14 sales

Kingfisher has unveiled preliminary results for the year ending January 2014.

- Group sales increased by 5.2% (+0.7% LFL) to reach £11,125m.
- Profits increased 4.1% to £744 million.

2013/14 Highlights:

-Good progress in tough environment
- Extremely challenging Q1, remainder of year more encouraging, except for persistent weak economic backdrop in France*
- Reported adjusted PBT up 4.1% and stronger underlying progress
- Market share growth in France, UK and Poland
- Grown Economic Profit (KEP*) to £74m
- Strong free cash flow* generation of £559m after capital expenditure
- Exceptional accounting gain of £131m principally relating to the successful resolution of the Kesa demerger French tax case
- ‘Creating the Leader’ programme continues to progress, on-going self-help initiatives supporting short-term performance whilst positioning the business for future growth - B&Q UK & Ireland’s accelerated evolution now underway, led by strengthened team

Kingfisher UK & Ireland:

Kingfisher UK & Ireland total sales were up 2.7% (+1.1% LFL) to £4,363 million supported by a strong performance from Screwfix and encouraging early signs in the smaller tradesman market, offset by a slower underlying retail market.

Kingfisher UK & Ireland delivered retail profit growth of 3.4% to £238 million. Gross margins were up 10 basis points with the benefits from on-going self-help initiatives offset by investment in pricing across both businesses. A strong focus on operating cost efficiencies continued.

B&Q UK & Ireland:

B&Q UK & Ireland’s total sales were up 0.4% (+0.1% LFL) to £3,698 million. Sales of outdoor products were up around 2%. Sales of indoor products were down around 1%. TradePoint continues to progress with sales up around 7% compared to last year.

In Ireland, following the conclusion of the Examinership process in May 2013, one store was closed and significant rent reductions achieved across the remaining stores. The business returned to break even in H2.

The market for the UK’s leading home improvement retailers* was up 3.8%, including seasonal ranges up 5.0%, following record adverse weather last year. On a comparable basis, B&Q UK & Ireland sales were up 1.7% and including Screwfix, up 4.1%.

Screwfix:

Screwfix grew total sales by 17.6% (+7.3% LFL) to £665 million, benefiting from a strong promotional programme, extended opening hours, the continued roll out of new outlets and the successful introduction of a mobile ‘Click, Pay & Collect’ offer last year. Sixty outlets were opened, taking the total to 335.

The market for the smaller tradesmen* was up around 2%.

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Kingfisher’s Group Chief Executive, Sir Ian Cheshire, said;

“We finish a challenging year in good shape, with our self-help programme meaning we have grown profit and economic return, improved our balance sheet strength whilst also investing in lower prices for our customers and improved convenience. The economic backdrop was generally soft across Europe for much of the year, particularly in France, our most significant market.

“Looking ahead we are well placed to benefit from a pick-up in consumer spending as Europe’s economies return to growth. Our prospects remain bright, giving us confidence to invest in the business and actively manage our portfolio, including expanding into new markets, whilst also commencing a programme of returning surplus capital to our shareholders, alongside the healthy annual dividend.”

Source: Kingfisher PLC
www.kingfisher.com