Preliminary results for the year ended 28 January 2012


22 March 2012



Delivering Value

February 2008 - January 2012

In 2008 we announced our aim to create a step change in shareholder value. The new management team introduced a four year programme of self-help initiatives known as 'Delivering Value' which targeted an improvement in cash returns from every part of the Group. The seven steps that constituted the 'Delivering Value' programme have been a great success during what has been a particularly challenging period for all retailers.

As a result Kingfisher is now a significantly stronger, higher returning business with an improved customer offer. Since the start of 'Delivering Value' (31 January 2008 to 19 March 2012) Kingfisher's stock market valuation has more than doubled from £3.4 billion to £7.2 billion and Total Shareholder Return has been 126.4% (FTSE 100: 16.2%).

A detailed list of the milestones achieved under the seven step plan is listed in the Delivering Value section but in summary, since the start of the programme in January 2008, we have:

  • Improved our profitability
    • Adjusted pre-tax profit more than doubled, up from £357 million in 2007/08 to £807 million in 2011/12
    • Retail profit margin up 290bps to 8.1%
    • Grown adjusted basic EPS by 137%
  • Generated higher returns on capital
    • Improved the Group's standard return on capital from 5.8% in 2008/09 to 10.7%, now ahead of the cost of capital
    • 2011/12 Kingfisher Economic Profit of £131 million (2007/08: £109 million loss(1))
  • Grown responsibly
    • Made our business more sustainable, CO2 emissions down 25%
    • Helped our customers make their homes more sustainable with sales of 'Eco' products broadly doubling since 2008/09 to £1.4 billion
  • Strengthened our foundations
    • Reduced financial net debt from £1.6 billion at reported exchange rates to £88 million and improved our credit rating metrics
    • Expanded and modernised the business, investing £1.4 billion to grow and improve our offer for customers, securing better future prospects for our shareholders and employees
    • Developed a high quality direct sourcing capability, growing our annual direct sourced shipments from $821 million to $1,456 million, now representing around 15% of our total Group sales

Our success is built on the positive engagement of our colleagues right across the Group. Kingfisher today is managed in a more unified way with collective responsibility for our performance. A series of internal networks bring together our international teams to work on common group goals, a new approach known internally as 'One Team'.

  1. constant currencies