Kingfisher, the owner of B&Q and Screwfix, reported a 23% rise in pre-tax profit to £436m for the six months to 31 July, driven by strong performances in the UK and Poland. Revenue increased 6.8% to £5.7bn, with UK and Ireland sales up 3.1% to £2.6bn, largely thanks to Screwfix, which opened 20 new stores, bringing its total to 477.
The company noted that it had closed 52 of a planned 65 B&Q outlets in the UK as part of a restructuring plan. Despite the Brexit vote, Kingfisher said it had seen 'no clear evidence of an impact on demand so far'.
In Poland, sales climbed 11%, but in France, Kingfisher's most profitable market, revenue grew just 0.3%. The firm cited widespread industrial action and wet weather for a 'more challenging environment' there, and chief executive Véronique Laury said she was 'cautious' on the short-term outlook.
Kingfisher is implementing its 'ONE Kingfisher' transformation plan, aiming to increase annual pre-tax profits by £500m within five years. Analyst Neil Wilson of ETX Capital called the results 'punchy' but questioned whether the company could sustain growth, particularly given uncertainty around Brexit's impact on the construction sector.
