B&Q owner Kingfisher has seen profits slump by more than a quarter and has warned over another steep fall in earnings as it overhauls its French business to help revive its fortunes.
The group, which also owns Somerset-based trade tools brand Screwfix, reported a 25.1% drop in underlying pre-tax profits to £568m for the year to January 31.
Kingfisher said like-for-like sales tumbled by 5.9% in France and 7.7% elsewhere across Europe. It said the 海角视频 and Ireland saw a more resilient performance, with sales up 0.8%, leaving overall group wide sales down 3.1%.
READ MORE: {}
The group has pared back sales declines so far in its new financial year, to a fall of 2.3%, but it warned that profits are expected to drop again, to between £490m and £550m in 2024-25.
Kingfisher, headed by Thierry Garnier, announced a turnaround plan for its beleaguered French arm, including a store restructuring and shop revamp plan, to help boost its flagging performance in the region.
The company's proposed dividend for the year ended January 31 2024 is 12.40p per share, comprising an interim dividend of 3.80p in respect of the six months ended July 31, 2023, and a final dividend of 8.60p.
Looking ahead, Kingfisher said it had a "reasonable expectation" it would continue in operational existence for the "foreseeable future" based on its liquidity position and cash flow projections.
Mr Garnier said: “Despite all the macroeconomic and consumer challenges in our markets over the past year, we have stayed focused on our customers and our long-term strategy.
Most Read
“I am immensely proud of all our teams for their efforts. In the 海角视频 & Ireland, B&Q, TradePoint and Screwfix each delivered resilient sales and market share growth – in particular very strong gains at Screwfix.”
Like this story? Why not sign up to get the latest South West business news straight to your inbox.