THE impact of the consumer downturn on sales of new kitchens and bathrooms contributed to a £25m slump in profits at Chandler’s Ford-based DIY chain B&Q.
Retail group Kingfisher – B&Q parent and the world’s third largest home improvement business which employs thousands in Hampshire – said profits for the UK arm of B&Q fell 19 per cent to £106m after sales declined 6.1 per cent in the year to January 31.
While the company was encouraged by good growth from revamped B&Q stores and new ranges, this was offset by a weak outdoor season and an 8 per cent drop in sales of big ticket items such as kitchens and bathrooms. Core DIY and makeover products were more resilient with a three per cent decline.
The profits fall in the UK was countered by Kingfisher’s international arm, enabling the group to report a 3.1 per cent rise in underlying profits to £368m for the year. However, exceptional items meant profits fell 75 per cent to £90m.
One-off items included a £124m write-down on the balance sheet value of its B&Q China business, which has struggled in the face of a “very difficult” housing market.
Kingfisher operates more than 800 stores in eight countries in Europe and Asia. Its other retail brands are Castorama, Brico Depot and Screwfix, while it also has a 21 per cent interest in, and strategic alliance with Hornbach, Germany’s leading DIY warehouse retailer.
The company said the UK home improvement market declined by about four per cent over the year as economic conditions worsened. It said it continued to press ahead with its B&Q renewal programme, which has updated product ranges, introduced more services and improved store environments. More than 4,500 staff have also received training in basic home improvement projects.
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