B&Q group sees takings tumble down

● Profits dip as lengthy Kingfisher restructuring goes on next year

years. Richard Hunter, head of markets at Interactive Investor, commented: “Kingfisher’s performance varies by both business and region, leading to a very mixed overall result as the group continues its transformation plan.

“As has become expected, Screwfix made a strong contribution to progress, whilst the Polish unit has also improved. Overall group sales are up, cost savings are falling out of the turnaround plan and the fact that Digital now accounts for half of the group’s sales positions the company well in the rapidly changing technology environment.”

Hunter added that Kingfisher’s continuing share buyback programme will remain “supportive”, and the 4 per cent increase in the full-year dividend to 10.8p was a sign of management confidence in the overall outlook. Taken together, the return to shareholders last year was worth £491m.

However, Hunter added the caveat that it was clear “a number of wrinkles still need to be ironed out” at the business, with both the French and UK markets – vital for Kingfisher – remaining tough.

In addition, gross profit margins – before tax – had fallen, and the group’s outlook statement was “extremely guarded”.