Wet weather dampens Kingfisher's annual results

Home improvement retailer Kingfisher posted a fall in annual pre-tax profit Tuesday in line with market expectations as wet weather in the UK dampened sales.

Home improvement retailer Kingfisher posted a fall in annual pre-tax profit Tuesday in line with market expectations as wet weather in the UK dampened sales.

Profit before tax came to £715m for the 2012/13 period, an 11.4% plunge from the previous year's £807m.

Sales dropped by 2.4% to £10.5bn from £10.8bn, reflecting weak consumer confidence and a record year of rain in the UK.

"We have had a tough year, impacted by unfavourable foreign exchange, record adverse weather in the UK and declining underlying markets in each of our three key territories," Group Chief Executive Ian Cheshire said.

"Whilst we have been unable to fully offset these headwinds, the hard work of our teams and our firm focus on our established programme of self-help initiatives means we ended the year in good shape with net cash on the balance sheet, higher market share and having generated economic return for our shareholders."

The company rewarded shareholders with a full-year dividend of 9.46p per share, up 7.0% from 9.84p the prior year.

During the year, the firm launched an omni-channel platform for the Screwfix and B&Q arms to provide customers with multiple shopping channels through online, mobile internet devices, television and catalogues.

Screwfix sells power tools, electrical and plumbing supplies while B&Q sells kitchens, bathrooms, sheds, paving and gardening.

Kingfisher also completed the UK roll out of DIY training classes and launched a B&Q YouTube channel with over 100 'how to' videos.

"Looking ahead, although we expect market conditions to remain challenging, we will continue to actively manage the business, optimising the generation and use of cash and driving longer term success through our own actions," said Cheshire.

"I remain very confident in our prospects, with clear initiatives underway to make it easier for our customers to have better and more sustainable homes."

RD

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Four investment trusts for income investors to buy now
Investment trusts

Four investment trusts for income investors to buy now

Some high-yielding listed lending funds have come through the crisis with flying colours. David Stevenson picks four of the best.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021