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Kingfisher profits fall as chain revamps | Kingfisher profits fall as chain revamps |
(35 minutes later) | |
Half-year profits at Kingfisher, the owner of B&Q and Screwfix, have fallen 5.9% to £402m amid what the company describes as "disruption". | |
The company, whose main operations are in the UK and France, is working its way through a five-year plan, which it began 18 months ago. | The company, whose main operations are in the UK and France, is working its way through a five-year plan, which it began 18 months ago. |
This includes streamlining the products it offers across its outlets. This has meant offering products it planned to phase out at discounted prices. | This includes streamlining the products it offers across its outlets. This has meant offering products it planned to phase out at discounted prices. |
Sales across the firm were down 1.3%. | Sales across the firm were down 1.3%. |
Kingfisher's revamp has included closing some B&Q stores, but it says it will deliver a £500m "sustainable" annual profit uplift by the end of 2021, which will cost £800m. | |
But it says that until it has finished streamlining the business, it will not be able to expand by much. | But it says that until it has finished streamlining the business, it will not be able to expand by much. |
The plan also includes buying back shares from its investors, a move that typically supports the share price. | |
It announced it would be looking to buy £60m worth of shares in the next three months. | |
The company said it was "cautious" on the outlook for the second half of the year. | |
Kingfisher is the largest DIY chain in Europe. | |
It employs 25,000 people in the UK and Ireland and 20,000 in France. | |
It also trades in Poland, Russia, Turkey and Spain and is starting businesses in Romania, Portugal and Germany. | It also trades in Poland, Russia, Turkey and Spain and is starting businesses in Romania, Portugal and Germany. |