Kingfisher hails Screwfix progress

Profits of £744m for the year to the end of January reflected a strong showing from its Screwfix trade supply division as UK and Ireland sales lifted by 2.7 per cent to £4.3bn over the period.

B&Q’s UK sales were flat at £3.7bn in a tougher retail market, with the performance held back by a challenging first quarter.

Screwfix sales jumped by 7.3 per cent on a like-for-like basis and were up by 17.6 per cent overall after the company opened 60 new outlets, taking the total to 335.

Kingfisher said it will now extend the Screwfix brand to Germany with the opening of four outlets. The move follows yesterday’s sale of Kingfisher’s 21.2 per cent stake in German home improvement chain Hornbach in a deal worth around £195m.

The company’s shares jumped five per cent in the wake of the results after it also announced additional cash returns to shareholders, starting with around £200m in the current financial year.

Chief executive Sir Ian Cheshire said the company was in good shape, despite lower profits and difficult trading conditions in France, where it trades as Castorama and Brico Depot.

He added: “Looking ahead we are well placed to benefit from a pick-up in consumer spending as Europe’s economies return to growth.”

Kingfisher is the world’s third largest home improvement retailer, with 1,124 stores in nine countries in Europe and Asia.