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Interim Results

Kingfisher on track despite fall in like-for-like sales

20 September 2017 07:27

Kingfisher's like-for-like sales fell by 1.3% in the six months to the end of July on a constant currency basis.

Sales totalled £6,008m - uo 4.5% on a reported basis but 1.3% lower at constant currencies.

The group said it was on track to achieve its FY 17/18 strategic milestones and its FY 20/21 targets remain unchanged.

Nut it added: 'We have experienced some business disruption reflecting the significant increase in transformation activity.

' We understand and are acting on the root causes, continuing to have a flexible approach, adapting as necessary as our transformation progresses.

'We always recognised that this year would be challenging and we already have self-help plans in place to support our overall FY 17/18 performance.

'We therefore remain comfortable with consensus full year expectations though remain cautious on the backdrop for the second half in the UK and France, as previously guided.'

Underlying pre-tax profits of £440m were up 0.9% on a reported basis but adjusted pre-tax profits were down 5.7% at £394m.

The group declared an interim dividend of 3.33p per share - up 2.5%.

It said the results reflected a c.2% LFL impact from business disruption, albeit with an overall improving trend, and continued weaker sales in France, offset by continued solid growth at Screwfix and Poland, and self-help initiatives, including £10m Goods Not for Resale benefits

Chief executive Veronique Laury said: 'As planned, this first half has seen a significant increase in the level of transformation activity.

'Changes are now visible in our stores with new product ranges being well received by customers.

'We are also changing our ways of working alongside the continued rollout of our unified IT platform.

'The pace is quick and impactful and is reflected in our performance.

'We continue to have a flexible approach as our transformation progresses, adapting as necessary, and this will support the significant amount of change planned for the second half and beyond.

'Looking across our markets, we have seen solid growth at Screwfix and Poland, offset by continued weaker sales in France and some business disruption, principally reflecting product availability and clearance.

'We are aware of and are acting on the causes of this disruption, which we are confident will ease. For the full year, we have self-help plans in place to support our overall performance and remain comfortable with full year profit expectations, though we remain cautious on the second half backdrop in the UK and France.

'We are on track to deliver our full year strategic milestones for the second year in a row. We understand the reality of our customers' lives and are creating a unified and unique offer based on their needs.

'We are buying as ONE and are starting to see the customer and financial benefits coming through. This is all underpinned by our IT rollout which remains on track, and efficiency benefits which continue to deliver.

'We remain confident in our ability to deliver our five year plan and in the benefits it will generate, supported by our great team of hard-working and enthusiastic colleagues.'

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