B&Q get profit boost

B&Q has delivered a 5% sales growth and a retail profit increase of 13% before store revamp costs in the 26 weeks to August 4. However, ceo Gerry Murphy has warned that the second half is likely to be tougher.

Sales for the group as a whole saw a 10% increase to £4,775m while pre-tax profit rose 6.2% to £189.6m. With international sales outperforming the group trend with a 14% rise.

“Our international businesses, which now account for more than half of Kingfisher’s sales, continued to deliver strong sales and profit growth. The outlook for our international markets remains generally positive,” said Mr Murphy.

“In the UK, all our businesses delivered sales growth in a market which remains relatively weak. We expect the second half to be tough as recent interest rate rises and current uncertainty in financial markets affect customer behaviour.”

Mr Murphy added that the company would continue its programme of store revamps and diversification of its offer. “B&Q’s development plan is progressing well,” he said, “with more stores now in a modern format and new products and services progressively being launched, all supported by a major new advertising campaign.”