Kingfisher (LON:KGF), owner of Screwfix and B&Q, have reported a sharp increase in sales due to the weaker pound and sales in the UK.
Despite increase in profits, chief executive Veronique Laury warned: “Looking forward, the EU referendum has created uncertainty for the UK economic outlook and we remain cautious on the outlook for France, especially in light of the forthcoming presidential elections.”
Sales in France were down by 2.7 percent to £4.3 billion, with both chains delivering weaker sales when compared to the home improvement market in France.
Laury has initiated a five-year restructuring programme for the retailer that is designed to close unprofitable shops and improve technology.
Kingfisher said it had finished its B&Q store closure programme, which saw it shut 65 stores and cut 3,000 jobs in the UK and Ireland.
“Solid enough results for Kingfisher, with a good performance from Screwfix, but evidence of a slight slowdown in the second half of the year might be cause for concern, while a lot of the gains seem to be down to the weak pound.” said Neil Wilson, a senior market analyst at ETX Capital.
“Profits beat estimates, but investors are showing signs of concern.”
Pre-tax profits for the group rose 48 percent to £759 million for the year to 31 January, from £512 million.
“I am really pleased that our performance has been achieved alongside delivering the key first year strategic milestones of our ambitious five-year transformation plan, based on creating a unified company where customer needs come first.” said Laury.
“We have learned a lot and are aware of the challenges. We are well set up for next year and beyond as the level of activity increases.
“Looking forward, the EU referendum has created uncertainty for the UK economic outlook and we remain cautious on the outlook for France, especially in light of the forthcoming presidential elections.”