Press releases
September 20, 2007
Interim results for the 26 weeks ended 4 August 2007
Group Financial Summary
| 2007/08 | 2006/07 | Reported Change | Constant Currency Change | Like-for-like (LFL) change | |
|---|---|---|---|---|---|
|
|||||
| Retail sales (1) | £4,775m | £4,349m | +9.8% | +10.7% | +4.3% |
| Retail profit (2) | £240.1m | £231.5m | +3.7% | +4.2% | |
| Adjusted pre-tax profit (3) | £189.6m | £178.5m | +6.2% | ||
| Adjusted post-tax profit (3) | £133.4m | £116.9m | +14.1% | ||
| Adjusted basic EPS (3) | 5.7p | 5.1p | +11.8% | ||
| Interim dividend | 3.85p | 3.85p | - | ||
| Net debt | £1,289.9m | (£1,293.8m as at 3 February 2007) | |||
First half highlights
- Retail sales up 10.7%, +4.3% LFL.
- Adjusted pre-tax profit ahead 6.2%.
- Exceptional profit of £37 million, primarily on freehold property disposals.
- Group tax rate 32.0% (2006/07: 34.5%).
- Net debt maintained at £1.3 billion.
- Interim dividend maintained.
Operating highlights
- International (ex-UK, now representing over half of Kingfisher's sales) delivered strong sales, up 14%, and retail profit growth of 11%.
- In France, sales grew 10% and retail profit grew 11%, boosted by a strong performance from Castorama.
- Elsewhere in Europe and Asia, sales grew by 25% and retail profit by 10%, boosted by a very strong performance in Poland, offsetting a weaker result in China.
- In the UK, B&Q grew sales 5% and retail profit before store revamp costs by 13%. Good progress was made modernising stores and launching new products.
- Forty-six net new stores opened creating 5,000 new jobs.
Statutory reporting
| 2007/08 | 2006/07 | Reported Change | |
|---|---|---|---|
| Pre-tax profit | £229.4m | £223.1m | +2.8% |
| Post-tax profit attributable to equity shareholders | £159.6m | £168.5m | (5.3)% |
| Basic EPS | 6.8p | 7.2p | (5.6)% |
Gerry Murphy, Group Chief Executive, said:
"Our international businesses, which now account for more than half of Kingfisher's sales, continued to deliver strong sales and profit growth. Good progress was made strengthening Castorama in France, expanding our younger international businesses and establishing new opportunities in Europe and Asia. The outlook for our international markets remains generally positive.
"In the UK, all our businesses delivered sales growth in a market which remains relatively weak. We expect the second half to be tough as recent interest rate rises and current uncertainty in financial markets affect customer behaviour. However, B&Q's development plan is progressing well, with more stores now in a modern format and new products and services progressively being launched, all supported by a major new advertising campaign.
"Our international diversity and buying scale are key competitive advantages and we will continue to capitalise on them to provide shareholders with sustainable, long-term growth and returns."
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