Technical guidance for FY 24/25

Income statement

• Space
  • Sales impact of c.+1.5% from net space growth, mainly from Screwfix UK & Ireland and Castorama Poland
    
• Other International
  • ‘Other’⁽¹⁾ retail losses of c.£35m (FY 23/24: £30m)
• Koçtaş (Turkey 50% joint venture)
  • Koçtaş retail contribution: c.£5m loss (FY 23/24: £15m profit)
  • Share of JV interest and tax: c.£20m loss (FY 23/24: £16m loss)
• Depreciation and amortisation
  • Anticipate c.£670m (FY 23/24: £641m)
• Central costs
  • Anticipate c.£60m (FY 23/24: £60m)
• Net finance costs
  • Anticipate c.£100m (FY 23/24: £105m) (previous guidance: c.£105m)
• Adjusted PBT
  • Full year adjusted PBT of c.£510m to £540m⁽²⁾ (previous guidance: c.£510m to £550m)
• Tax rate
  • Group adjusted effective tax rate of c.29% ⁽³⁾, if the French government's proposal to temporarily increase Corporate Income Tax (CIT) for a two-year period is enacted. (FY 23/24: 27%) (previous guidance: c.27%) 

Cash flow

• Capital expenditure
  • Targeting gross capex of c.£350m (FY 23/24: £363m; c.2.8% of total sales)
• Free cash flow
  • Anticipate c.£410m to £460m for the year (FY 23/24: £514m) 
• Share buybacks
  • Completion of current £300m share buyback programme in March 2025 (c.£150m repurchased to 17 September 2024, of which c.£100m has completed during this financial year to date)
• Dividends
  • c.£230m outflow for dividends related to the FY 23/24 final dividend and FY 24/25 interim dividend   
  • Dividend policy target cover range of 2.25 to 2.75 times, based on adjusted basic earnings per share. We may move outside of this target range, temporarily, from time to time

Last updated: 25th November 2024

⁽¹⁾ ‘Other’ consists of the consolidated results of Screwfix International, NeedHelp, and results from franchise and wholesale agreements, recorded within the ‘Other International’ division. On 18 July 2024, we completed a divestment of our c.80% equity interest in NeedHelp.

⁽²⁾ Guidance assumes current exchange rates.

⁽³⁾ Subject to the blend of profit within the Group’s various jurisdictions.

Forward-looking statements

You are not to construe the above technical guidance as investment, legal or tax advice and you should make your own evaluation of the Company and the market. If you are in any doubt about the above contents or the action you should take, you should consult a person authorised under the Financial Services and Markets Act 2000 (as amended) (or if you are a person outside the UK, otherwise duly qualified in your jurisdiction).

The above technical guidance has been prepared in relation to the financial results for the three months ended 31 October 2024. The financial information referenced is not audited and does not contain sufficient detail to allow a full understanding of the results of the Group. Nothing in the above statements should be construed as either an offer or invitation to sell or any offering of securities or any invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in any company within the Group or an invitation or inducement to engage in investment activity under section 21 of the Financial Services and Markets Act 2000 (as amended) (or, otherwise under any other law, regulation or exchange rules in any other applicable jurisdiction).

Certain information contained above may constitute "forward-looking statements" (including within the meaning of the safe harbour provisions of the United States Private Securities Litigation Reform Act of 1995), which can be identified by the use of terms such as "may", "will", "would", "could", "should", "expect", "anticipate", "project", "estimate", "intend", "continue", "target", "plan", "goal", "aim", "forecast", or "believe" (or the negatives thereof) or other variations thereon or comparable terminology. These forward-looking statements are based on currently available information and our current assumptions, expectations and projections about future events. These forward-looking statements include all matters that are not historical facts and include statements which look forward in time or statements regarding the Company's intentions, beliefs or current expectations and those of our Officers, Directors and employees concerning, amongst other things, the Company's results of operations, financial condition, changes in global or regional trade conditions (including a downturn in the retail or financial services industries), competitive influences, changes in tax rates, exchange rates or interest rates, changes to customer preferences, the state of the housing and home improvement markets, share repurchases and dividends, capital expenditure and capital allocation, liquidity, prospects, growth and strategies, litigation or other proceedings to which we are subject, acts of war or terrorism worldwide, work stoppages, slowdowns or strikes, public health crises, outbreaks of contagious disease, environmental disruption or political volatility. By their nature, forward-looking statements are not guarantees of future performance and are subject to future events, risks and uncertainties – many of which are beyond our control, dependent on actions of third parties, or currently unknown to us – as well as potentially inaccurate assumptions that could cause actual events or results or actual performance of the Group to differ materially from those reflected or contemplated in such forward-looking statements. For further information regarding risks to Kingfisher's business, please consult the risk management section of the Company's Annual Report (as published). No representation, warranty or other assurance is made as to the achievement or reasonableness of, and no reliance should be placed on, such forward-looking statements.

The forward-looking statements contained above speak only as of the date of the announcement of the financial results for the three months ended 31 October 2024 and the Company does not undertake any obligation to update or revise any forward-looking statement to reflect any new information, change in circumstances, or change in the Company's expectations to reflect events or circumstances after the date of the announcement or to reflect the occurrence of unanticipated events.