Kingfisher lifts annual guidance as interim earnings jump 9.9%

(Sharecast News) - DIY retailer Kingfisher on Tuesday lifted annual guidance after a 9.9% jump in half-year profits driven by a strong performance at its Screwfix unit. The owner of B&Q, Brico Depot and Castorama said it now expects adjusted pre-tax profit of £595m-£635m (previously £565m-£625m) and free cash flow of £480m-£520m (£450m-£510m).

Adjusted earnings for the six months to July 31 rose 9.9% to £404m driven by gross margin expansion reflecting higher retail profit and aided by a one-off £14m business rates refund in the UK, partly offset by higher net finance costs.

Like for like sales at Screwfix increased by 5.6%. Core sales were softer at B&Q and Brico Depot as summer heatwaves impacted footfall into stores and delayed larger building projects, tiling and painting.

Reporting by Frank Prenesti for Sharecast.com