Kingfisher reels from DIY disaster in UK and France

PROFITS at B&Q owner Kingfisher slumped 30pc after a dismal performance at its French business and B&Q chain.

Earnings tumbled to £281m in the six months to July 31 prompting concern a turnaround plan is failing to take shape.

Sales across the group dropped 1.1pc during the period, with Kingfisher blaming poor performance at its 296 B&Q stores on snow earlier in the year as well as the summer heatwave. Sales over the six months fell 2.5pc.

Kingfisher said a weaker housing market was hitting demand for DIY products.

But sales at Screwfix, favoured by tradesmen rather than DIY enthusiasts, remained strong, growing by 4.5pc in the UK. Its French division was hit hardest, with sales at chains Castorama and Brico Depot falling 5.8pc and 1.7pc respectively.

The group is halfway through a five-year transformation programme to reduce costs, improve its IT system and integrate the products it sells. It intends to achieve £500m in profits and become the leading home improvement chain by 2021.

But analysts remained unconvinced that the programme was working, sending shares as low as 8pc. Chief Executive Veronique Laury insisted: ‘Transformation on this scale is tough, and there are challenges that we’re working through.’