Kingfisher warns of uncertain outlook

B&Q owner Kingfisher has reported annual profits tumbling more than 10% and warned of an “uncertain” UK outlook after a recent hit to sales.

The group said B&Q like-for-like sales slumped 5.1% in the final three months of its year, while its better-performing Screwfix arm saw sales growth slow to 7.1% amid falling demand for so-called “big ticket” ranges such as kitchens.

Kingfisher posted a 10.1% fall in annual pre-tax profits to £682 million, but saw underlying profits edge 1.3% higher to £797m.

It said overall UK and Ireland like-forlike sales rose 0.6% in the year to January 31 as Screwfix continued to offset sales woes at B&Q, with price inflation also providing a boost.

B&Q like-for-like sales dropped 2.8%, while trade-focused arm Screwfix enjoyed a 10.1% increase over the year.

But Kingfisher said “business disruption” knocked around 1.5% off its group-wide like-for-like sales as it was left with stock availability problems amid efforts to clear out old stock.

Chief executive Veronique Laury said: “Our performance this year has been mixed, however, with solid growth at Screwfix and Poland offset by continued weaker sales in France and some business disruption, principally reflecting product availability and clearance.

“We are acting on the causes of this disruption. Next year will be another big year in our transformation plan.”

She added: “The outlook for our main markets is also mixed. The UK is more uncertain, France is encouraging yet volatile, whilst the market in Poland remains supportive.”

B&Q is in the middle of an overhaul, which has seen it shut 65 stores and slash around 3,000 jobs in the UK and Ireland over the last two years.

B&Q on Crieff Road, Perth. Picture: Steve MacDougall.