CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Kingfisher reports drop in pre tax profits

Article By: ,  Financial Analyst
September 15, 2015 6:36 PM

Kingfisher, the group behind DIY brands B&Q and Screwfix has announced plans to open another 200 Screwfix stores in the UK.

The company currently has 412 Screwfix UK stores – these supply a range of tools, plumbing and electrical equipment.

While the firm is planning on expanding one part of its business, it's also looking to scale back in other ares. As part of its restructuring plans, it's working on closing around 60 B&Q stores – this should be completed by the end of the 2016-17 financial year.

Recent financial results for the group saw pre-tax profits drop 1.8 per cent to £386 million for the half-year to August first. Total sales during the period fell by 4.8 per cent to £5.49 billion.

"Solid" first half

Commenting on the results, chief executive Veronique Laury said she was pleased.

"We have delivered a solid first half of the year," she explained, adding that there is still a lot that needs to be done.

As well as shutting B&Q locations and expanding the Screwfix business, Kingfisher also plans to cut back on the 393,000 products it sells. The firm has reported that only 7,000 items – amounting to seven per cent of sales – are sold in at least two of the operating companies.

Kingfisher says the Screwfix brand "continues to deliver strong growth" in the UK market. In the first half of the year, like-for-like sales rose 16.5 per cent to 494 million. Sales were driven by strong growth from trade desks for plumbers and electricians. Digital and mobile growth also helped the brand, as well as new and extended ranges and new outlets.

In addition, the company has expanded to Germany and "has been well received".

B&Q's results were not as strong, with like-for-like sales going up by just 0.7 per cent. This year, the company plans to close 30 stores – the two-year restructuring plan is expected to cost the company £350 million.

Kingfisher also runs Castorama and Brico Depot in France and other countries.

At 16:01 BST on Tuesday (September 15th), shares in the company were down 2.47 per cent to 351.40.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024