Kingfisher puts in strong performance

DIY retailer Kingfisher saw group retail profit soar 13% during the third quarter after total group sales rose 3.5%.

The company, which owns the Screwfix and B&Q brands, generated £2.8bn through sales leading to a £273m retail profit.

Chief executive Ian Cheshire said: "Our well-established programme of self-help initiatives has continued to drive our growth despite these difficult times for European consumers. I am pleased that our teams' hard work has resulted in healthy sales growth and a 13% profit growth in our third quarter, one of our most significant trading periods of the year, particularly in France.

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"Looking ahead, the short-term outlook in our major markets remains challenging but Kingfisher is in good shape, and we are more able to drive market share gains, profit growth and higher cash returns."

The firm's French division continued to outperform the market with self-help initiatives driving sales ahead 2.9% to £1.19bn, while in the UK and Ireland, the company reported a 1.2% rise in sales and a 21.7% increase in profit.

During the third quarter the group opened six new stores in its "other international" division, including three in Poland where lower profit was offset by a strong performance in Russia and Turkey.

B&Q China suffered a 5% decline in sales to £92m after it was hit by a challening housing market.

At the end of the period the firm had net cash of £14m, compared to net debt of £186m at 30 July.

NR