Progress update from the Group Chief Executive
"When I became your Chief Executive last year, I stated my aim to deliver a step-change in value for Kingfisher shareholders. As I said in last year’s Annual Report, this will be achieved by focusing on three key priorities – Management, Capital and Returns. It has been a busy and challenging year but I am pleased to report good progress with these priorities."
Group Chief Executive, Kingfisher plc
The previous decentralised management structure has been replaced by a new senior team which has collective responsibility for overall delivery of Group results in addition to their individual responsibilities.
Capital expenditure has been significantly reduced and reprioritised, targeting higher hurdle rates and faster payback. With a more vigorous focus on cash we have reduced working capital by £180 million and sold Castorama Italy for an excellent price, thereby reducing our net debt by 41% in constant currency to £1 billion.
Greater focus has been placed on generating higher cash returns from the retail businesses. Stretching targets for sales growth, margin improvement and cost reduction were introduced and in June we launched our seven-point ‘Delivering Value’ plan.
This year we have launched our seven-point ‘Delivering Value’ planView our 7 key steps