Kingfisher going according to plan as profits soar

B&Q PARENT Kingfisher will hail the success of its business strategy when it on Wednesday reveals a 19 per cent rise in annual profits to around £800 million.

One of the strategic objectives set in 2008 was to drive up B&Q’s profits, which four years ago were £106 million but are forecast to be around £234m for the year to 31 January. The company has now reached the end of the first part of its plan and is preparing to move into the next phase, which will include rolling out products exclusive to Kingfisher, as well as adding stores and digital channels.

Kingfisher had a strong 2011, despite a drop in sales of home improvement and heating products in the UK, as it enjoyed strong growth in its overseas division, which includes Castorama and Brico Depot.

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Assad Malic, analyst at Credit Suisse, said: “We expect the full-year results to demonstrate the ongoing benefit of internal self-help and market-share gains, despite a challenging environment.”

Shares in Kingfisher have climbed around 50 per cent since a low point in July.