DIY giant Kingfisher's shares fall
TAXING times for French customers and a strong pound eclipsed a Screwfix sales boom in the UK to put a £300million dent in DIY giant Kingfisher’s value.
Shares in the B&Q owner fell 12½p to 291¼p as trading conditions deteriorated over the past three months in its key French market, which generates more than half of its profit.
Sales were down in Poland and profit from Russia fell 45 per cent due to a weak rouble despite high turnover growth.
In France, where it operates Castorama and trade-orientated chain Brico Depot, sales were down 9.3 per cent and quarterly retail profit 14.3 per cent lower at £120million.
We’re expecting this sort of flat to negative picture to continue
Chief executive Sir Ian Cheshire said: “In this quarter, you saw a degree of the reality of some of the tax increases for the French consumer. We’re expecting this sort of flat to negative picture to continue.”
A stronger housing market and improving consumer confidence underpinned UK and Ireland sales, up 4.8 per cent to £1.15billion as Screwfix turnover surged 25 per cent, while profit jumped 11.1 per cent to £70million. Group profit fell 11.8 per cent to £225million.
