Kingfisher boss rules out Screwfix spin-off as restructuring drags down profits

Earnings per share (EPS) are seen at 26 pence versus 25.9 pence in 2016-17.

The group said adjusted pre-tax profits fell 5.7 per cent to £394 million in the six months to the end of July, as it faced £46 million in costs linked to its transformation plans.

However, on a constant currency basis, sales declined by 1.3 per cent, while overall like-for-like sales also declined two per cent during the period.

B&Q owner Kingfisher has warned over a cautious backdrop in the United Kingdom and France as profits took a hit from efforts to overhaul the business.

Group sales lifted 4.5 per cent to more than £6 billion, but sales across the United Kingdom and Ireland dropped 0.4 per cent to £2.6 billion in response to B&Q store closures and transformation pressures.

In the United Kingdom, the closure of B&Q stores impacted sales but Screwfix performed strongly and inflation pushed up prices.

Total sales rose 4.5 percent to 6.0 billion pounds and the interim dividend was raised 2.5 percent to 3.33 pence.

Kingfisher PLC (LON:KGF) shares topped the FTSE 100 leader board today, soaring over 7% higher as the DIY retailer posted an above-forecast increase in first half profit nd said it was still comfortable with full-year expectationscautious although it is cautious on the second-half backdrop in both the United Kingdom and France.

Looking forwards, the company said that it continues to be “comfortable with consensus full year expectations though remain cautious on the backdrop for the second half in the United Kingdom and France”.

“We are on track to deliver our full year strategic milestones for the second year in a row.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”, the company said.

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