Portrait photograph of Ian Cheshire, Kingfisher Chief Executive

Chief Executive's
statement

Ian Cheshire
Group Chief Executive
In 2008 I announced my aim to deliver a step-change in shareholder value, and our new management team introduced a programme of self-help initiatives known as ‘Delivering Value’. This has been a great success during a particularly challenging period for all retailers.

Kingfisher is now a significantly stronger and more sustainable business with a bright future ahead of it.

I’m delighted that the hard work of my 80,000 colleagues around the world has resulted in a substantial increase in the value of our business for shareholders.

Turning to 2011/12 I am pleased we have delivered another year of strong profit growth, our third such year in a row, in what remain challenging times for our customers.

We have much more to do, but I believe Kingfisher is now well on the way to fulfilling its potential as the industry leader in home improvement.

This is an exciting prospect for both our colleagues and our shareholders. Industry leadership will bring with it an outperformance in sales, profit and economic return, making Kingfisher a more valuable business.

Today we are embarking on the next phase of this journey. Our ‘Creating the Leader’ programme will see us emerge as a world-class retailer at helping customers have better, more sustainable homes.

Sustainability is a key part of Kingfisher’s heritage and is a core part of this new strategic programme. We have this year committed to a new challenge: to go beyond neutrality, with a long-term philosophy that we should eventually be able to put more back than we take out in the course of our operations. This commitment is called ‘Kingfisher Net Positive’. A summary of our achievements in the past year is set out in the Sustainability: Becoming 'Net Positive' section and our full CR Report, published in June, will go into more detail on our progress.

Whilst the immediate economic outlook remains uncertain, we face the future in robust shape and with our successful self-help approach now embedded in the way we do business.

 

Adjusted pre-tax profit*
Bar chart showing Kingfisher's annual adjusted pre-tax profit from £807 million + 126%
Adjusted basic earnings per share*
Bar chart showing Kingfisher's  annual adjusted basic earnings pre-share  at 25.1p + 137%
Standard return on capital*
Bar chart showing Kingfisher's  annual standard return on capital at 10.7 + 490 BPS
Financial net debt (cash)
Bar chart showing Kingfisher's  annual financial net debt 88m -£1.5 billion

* For definitions see the Financial Review section

CEO Video Interview
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"Kingfisher is now a significantly stronger and more sustainable business."

Delivering Value Highlights 2008-2012
Adjusted pre-tax profit
£807M
+126%
Adjusted basic earnings per share
25.1P
+137%
Standard return on capital
10.7%
+490BPS
Financial net debt
£88M
-£1.5BN
Annual Report & Accounts

2011/12

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