Kingfisher profit beats estimates on growth at B&Q

Kingfisher, Europe’s largest home-improvement retailer, which owns B&Q here, reported profit that beat estimates, amid growth in the UK and Poland.

Pretax profit before one-time items was little changed, at £678m (€863m) in the year to the end of January, the London-based retailer said. Analysts expected £667m, according to the average estimate.

The shares rose over 1% at one stage, as Kingfisher also revealed that it has agreed to complete its exit from B&Q China.

Wumei Holdings, which acquired a controlling 70% stake in the unit last year, will buy the rest, for about £60m.

The higher-than-expected profit will be a boost for Kingfisher investors, who were warned this year that chief executive, Veronique Laury’s plan to boost profit, by unifying Kingfisher’s buying and operations, would incur costs of £800m.

In the UK, Kingfisher is offering professionals to spruce up customers’ homes through its tradesmen-oriented Screwfix chain.

“In the short-term, the fundamentals of the UK economic backdrop remain positive, although we remain cautious on the outlook for France,” chief financial officer, Karen Witts, said.

“The outlook for the wider global economy remains uncertain, and the impact of the outcome of the UK EU referendum is unknown,” she said. Kingfisher is supporting the EU.