B&Q reports fall in profits

The impact of the consumer downturn on sales of new kitchens and bathrooms contributed to a £25m (€26.8m) slump in profits at British DIY chain B&Q today.

Retail group Kingfisher – the world’s third largest home improvement business - said profits for the UK arm of B&Q fell 19% to £106m (€114m) after like-for-like sales declined 6.1% 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% drop in sales of higher ticket items such as kitchen and bathroom ranges.

Sales of core DIY and room makeover products were more resilient after a 3% sales decline.

The profits fall in the UK was countered by Kingfisher’s international arm, enabling the group to report a 3.1% rise in underlying profits to £368m (€395m) for the year. However, exceptional items meant profits from continuing operations fell 75% to £90m (€96.7m).

One-off items included a £124m (€133m) 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.