Shares fall hits B&Q’s warm glow

The DIY chain achieved a 10 per cent increase in profits as customers stayed in their gardens but analysts gave a lukewarm response.

Kingfisher said the seasonal boost meant sales of garden furniture and outdoor paints were especially good, though this had a knock-on impact on sales of indoor products, which fell by 10 per cent.

Overall, B&Q, which has 330 stores in the UK and Ireland and 20 in Yorkshire, increased sales by 1.5 per cent to £1.1bn in the three months to April 30, in line with City forecasts. Profits over the quarter rose by 10.1 per cent to £74m.

Ian Cheshire, chief executive of Kingfisher, said he expected the rest of the year to be tough for retailers generally.

B&Q added it more than doubled its sales of top end barbecues and garden furniture, while sales of plants rose by 19 per cent, or more than one million, with bedding plants booming. In total, the UK side of Kingfisher lifted profits by nearly 15 per cent as Screwfix, which has 166 UK branches supplying builders, electricians and plumbers, posted almost doubled profits of £9m.

Overall, Kingfisher lifted profits for the quarter by 21 per cent to £174m with sales up 3.3 per cent to £2.7bn as the good UK performance was mirrored elsewhere.

Deutsche Bank said there was some disappointment that the UK arm delivered neither strong like-for-like sales growth nor higher gross margins. Shares in Kingfisher closed down 2.8p (one per cent) at 279.3p.