Kingfisher profits rise despite UK pressure

The DIY business, which has 330 B&Q stores in the UK and Ireland, said self-help initiatives and a decent performance from Castorama and Brico Depot in France meant profits rose to 354m in the six months to July 31.

B&Q revenues in the UK and Ireland were down 3 per cent at 2.1bn after sales of kitchens, bathrooms and bedrooms declined 6 per cent due to fewer promotions and weak consumer appetite for bigger ticket purchases.

The limited use of special offers protected margins and combined with cost efficiencies to produce a 15 per cent rise in B&Q's UK profits to 158 million.

Chief executive Ian Cheshire said he expected the company's UK stores to face challenging conditions for some time.

He added: "Our continued profit growth will come from our well-established self-help initiatives, including sourcing more products through our global network and vigorously driving operating cost efficiencies."

The company plans to revamp 16 of its larger stores in the UK during the second half of the year and said another 30 showroom areas, featuring kitchens, bathrooms and bedrooms, will also see investment.

Kingfisher, which owns Screwfix, added that the roll-out of its TradePoint in-store merchanting initiative into bigger B&Q outlets had been completed on time.

The group, which has spent 30m on the TradePoint offer, hopes the move will boost its current low share in the professional trade market.

In France, Kingfisher said it outperformed the market with sales ahead 2.9 per cent to 2.2bn and retail profits up 9.3 per cent to 160m.