French trading hits Kingfisher

Sir Ian Cheshire, who steps down on December 8 after seven years at the helm of the B&Q owner, reported an 11.8 per cent fall in retail profits to £225m for the 13 weeks to November 1 as sales slipped 3.6 per cent to £2.8bn.

Profits in France slumped by 14 per cent to £120m, but the figure was up 11.1 per cent to £70m in the UK and Ireland after like-for-like sales rose 2.6 per cent on the back of a stronger British economy and a more resilient housing market.

Screwfix was the star performer with like-for-like sales up 13.1 per cent as it took advantage of a strong promotional programme, new ranges and stores and the roll-out of its click-and-collect service. Total sales at Screwfix jumped 25 per cent.

Kingfisher is Europe’s biggest home improvement retail group and runs 1,176 stores across 11 countries in Europe and Asia under brands such as Castorama and Brico Depot.

Sir Ian is to be replaced by the group’s Castorama boss Veronique Laury, who will become one of the few women to lead a FTSE 100 firm.

Sir Ian said: “Trading conditions in our largest and most significant market, France, were particularly difficult and deteriorated across the quarter, impacted by the weak economic backdrop.”

“In the UK however, where conditions have been more favourable, we have delivered like-for-like growth with Screwfix performing particularly well, delivering a 25 per cent increase in sales on top of very strong growth last year.”