Kingfisher Final Results

Kingfisher reports full year adjusted pre-tax profits up 20% to £807 million and dividends up 25% in its final year of 'Delivering Value'. Provides details of the next phase of its development 'Creating the Leader'

Note: Joint Venture (Turkey JV) and Associate (Hornbach) sales are not consolidated. Retail profit is operating profit stated before central costs, exceptional items, amortisation of acquisition intangibles and the Group's share of interest and tax of JVs and associates. Adjusted measures are before exceptional items, financing fair value remeasurements, amortisation of acquisition intangibles, related tax items and tax on prior year items. A reconciliation to statutory amounts is set out in the Financial Review (Section 6).

Highlights (in constant currencies):

·    Completion of the four year 'Delivering Value' programme, Kingfisher successfully repositioned as a stronger, more valuable business

·    Self-help initiatives drove strong growth in each of the three main operating divisions in what remained challenging consumer markets:

o French retail profits up 20.0% to £423 million driven by strong sales growth (+3.7% LFL) and continuing margin initiatives

o UK & Ireland retail profits up 11.6% to £271 million. B&Q retail profit margin continued to improve, benefiting from margin and cost initiatives. 29 ex-Focus DIY stores acquired, 27 converted during the year to the B&Q format. Screwfix retail profit up 16.2%

o Other International retail profits up 13.2% to £188 million driven by profit growth in Poland, Turkey, Germany and Russia and lower losses in China

·    Full year dividend up 25%, ahead of growth in adjusted earnings. Dividend cover reduced to 2.8 times and to be lowered to 2.7 times over the medium-term, as previously announced

·    Property portfolio independently valued at £3.5 billion (2010/11: £3.3 billion)

Note: A reconciliation to adjusted measures above is set out in the Financial Review.

Ian Cheshire, Group Chief Executive, said:

"I am pleased we have delivered another year of strong profit growth, our third such year in a row. In what remain challenging times for our customers, these results are testament to the dedication of our talented colleagues around the world. Our relentless focus on the self-help initiatives that formed our four year 'Delivering Value' programme has borne fruit, generating a significant increase in the value of our business for shareholders.

"We have much more to do, but I believe Kingfisher is now well on the way to fulfilling its potential as the industry leader in home improvement. This is an exciting prospect for both our colleagues and our shareholders. Industry leadership will bring with it an outperformance in sales, profit and economic return, making Kingfisher a more valuable business.

"Today we are embarking on the next phase of this journey. Our 'Creating the Leader' programme will see us emerge as a world-class retailer, helping customers have better, more sustainable homes.  

"Whilst the immediate economic outlook remains uncertain, we face the future in robust shape and with our successful self-help approach now embedded in the way we do business."