Kingfisher’s flying high as it creates 1,200 jobs at trade arm

The announcement came as Kingfisher yesterday revealed a 24 per cent rise in interim pre‑tax profits to £439 million, with cost controls and improved profit margins offsetting declining sales in tough markets.

Ian Cheshire, chief executive, said: “Looking ahead, economic uncertainty throughout Europe is likely to impact consumer confidence, meaning conditions will remain challenging for retailers.

“However, our plans already assumed little help from our markets and I am confident we will continue to outperform.”

Kingfisher said it would open 40 new Screwfix stores by the end of next January, three‑quarters of which will be in a new smaller format, taking the total number of outlets at the subsidiary to 215.

As well as 1,000 new jobs at that business, another 230 will come after converting 29 former rival Focus DIY stores into B&Qs.

Cheshire said the decision to speed up the company’s opening programme followed a successful trial of the new Screwfix format, which is almost half the size of existing outlets. “Although the economic outlook is uncertain, this investment demonstrates our confidence in the UK’s longer‑term growth prospects,” he said.

Screwfix’s profits rose 25 per cent to £17m in the six months to end‑July, while Kingfisher’s overall UK profits lifted 6 per cent to £182m. As usual, B&Q, with 335 stores, contributed the lion’s share, profits increasing 4.5 per cent to £165m as it sold more high‑margin products.

It was a tougher picture on sales, with revenues in the depressed UK and Irish markets down 1 per cent to £2.3bn.

Sales at B&Q fell 2 per cent as the business was hit by a big stock clearance at Focus when it went into administrative receivership.

Kingfisher, which had a strong spring that included the hottest Easter for 60 years, said poor summer weather also saw sales of B&Q’s garden and other outdoor products fall 4 per cent.

Group profits overall were well ahead of City expectations. The shares has outperformed the Stoxx Europe 600 retail index by 11 per cent this year as the company has proved one of the most resilient retailers in the downturn.

Kingfisher, which earns two‑thirds of its profits overseas, was boosted by a robust performance from its Castorama and Brico chains in France, where profits jumped 26 per cent to £201m. The group’s other international businesses posted a 27 per cent rise in profits to £90m.

Kingfisher has boosted the interim dividend by 28 per cent to 2.47p payable on 11 November.