Progress update from the Group Chief Executive
"In the first full year for the new Group Executive team I am pleased to report a strong improvement in performance. We made good progress with our seven-point ‘Delivering Value’ plan to improve returns to shareholders, which we cover in more detail elsewhere in this report. Profitability, cash generation and return on capital all grew in the UK & Ireland, France, Poland, Turkey and Spain. Encouragingly, losses were significantly reduced in China as our turnaround plan progresses."
Group Chief Executive, Kingfisher plc
“In generally weak consumer markets our self-help initiatives underpinned our robust performance, driving a higher gross margin, more cost efficiency and lower working capital.”
“We have also been busy laying the foundations for our future growth by broadening our product range into new categories, opening new stores and coordinating our buying activities to enable more common sourcing. We also made good progress with our corporate responsibility agenda and sales of eco products topped £1 billion for the first time. Our rigorous approach to generating cash returns and tightly managing our capital means we are now able to increase new capital investment to support future growth.”
“Looking ahead, we remain cautious on the outlook for consumer demand across Europe. However, we are confident that our experienced management team, successful international strategy and buying scale mean we will be able to drive continued growth through our own actions. Recognising our improved profitability, cash generation and future growth prospects I am delighted that the final dividend payment will be increased, the first dividend growth for our shareholders in five years.”
Kingfisher plc is Europe’s leading home improvement retail group and the third largest in the world, with over 830 stores in eight countries in Europe and Asia. Its main retail brands are B&Q, Castorama, Brico Dépôt and Screwfix. Kingfisher also has a 50% joint venture business in Turkey with Koç Group, and a 21% interest in, and strategic alliance with Hornbach, Germany’s leading large format DIY retailer.
Kingfisher launched its seven-point ‘Delivering Value’ plan in 2008 with the aim of improving returns to shareholders. Find out more about progress in the past year and the key milestones for 2010/11. How we're Delivering Value