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FY 2018/19  Technical Guidance

 

Employees, new stores and space growth:

  Employees
(FTE)
At 31 Jul
2018
Store Numbers
At 31 Jul 2018
Sales area(1)
(000s m2)
At 31 Jul 2018
Net new stores
FY 2018/19
Space % change
FY 2018/19
B&Q UK & Ireland 16,717 296 2,210 - -
Screwfix 7,938 598 38 50 +8%
UK & Ireland 24,655 894 2,248 50 -
Castorama 12,433 101 1,250 (1) (1)%
Brico Dépôt 7,808 123 850 2 +2%
France 20,241 224 2,100 1 -
Poland 11,094 76 650 - -
Russia 3,280 20 204 - +4%
Romania 2,477 38 273 - -
Iberia 1,995 31 195 - -
Screwfix Germany 175 19 1 - -
Other International 19,021 184 1,323 - -
Total 63,917 1,302 5,671 51 -

(1) Screwfix sales area relates to the front of counter area of an outlet

Income statement:

  • Group gross margin to grow after clearance costs
  • Underlying profit to include up to a further £30m operational efficiency benefits
  • Total 5 year transformation costs £800m over 5 years to FY 20/21
    • Transformation P&L costs expected to be c.£135m in FY 18/19
    • Transformation exceptional costs expected to be c.£55m in FY 18/19
  • B&Q discontinuation of showroom installation expected to impact H2 LFL by c1-2% with a broadly neutral impact on retail profit
  • Central costs expected to be c.£50m
  • Adjusted effective tax rate expected to be around 27-28%, subject to the blend of profit within the companies’ various jurisdictions

Cash flow:

  • Capital return of c.£600m by the end of FY 18/19 via share buyback (£550m completed to date)

  • Total capex including transformation of up to £350m (was £425m)

Forward-looking statements

You are not to construe the content of this announcement as investment, legal or tax advice and you should make you own evaluation of the Company and the market. If you are in any doubt about the contents of this announcement 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).  

This announcement has been prepared in relation to the financial results for the full year ended 31 January 2018. The financial information referenced in this announcement is not audited and does not contain sufficient detail to allow a full understanding of the results of the group. Nothing in this announcement 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). Certain information contained in this announcement 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” or “believe” (or the negatives thereof) or other variations thereon or comparable terminology. These forward-looking statements include all matters that are not historical facts and include statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of operations, financial condition, changes in global or regional trade conditions, changes in tax rates, liquidity, prospects, growth and strategies. By their nature, forward-looking statements involve risks, assumptions and uncertainties that could cause actual events or results or actual performance of the Company to differ materially from those reflected or contemplated in such forward-looking statements. No representation or warranty is made as to the achievement or reasonableness of and no reliance should be placed on such forward-looking statements.  

The Company does not undertake any obligation to update or revise any forward-looking statement to reflect any change in circumstances or in the Company’s expectations.