DIY company Kingfisher managed a 4.1 % profit increase in its fiscal year 2013/2014, but decided to sell its stake in the German Hornbach chain after disappointing results.
French sales drop
Kingfisher - which owns B&Q, Screwfix, Castorama and Brico Depot - managed a pre-tax profit of 744 million pounds (889 million euro) for 2013-2014 as turnover rose 3.5 % to 11.1 billion pounds (13.3 billion euro). Like-for-like turnover grew 0.7 %, while 91 new stores were opened in the past fiscal year.
These numbers are in line with analysts' expectations, who had predicted a 738 to 748 million pounds profit, even though French sales (Kingfisher's largest market) dropped 1.2 % on a like-for-like basis - compared to a 1.1 % rise in the United Kingdom and Ireland and even a 3.4 % increase in other markets.
Hornbach stake sold
Kingfisher aims to invest 10 million pounds (12 million euro) in the fiscal year 2014-2015 to open two new markets, with Brico Depot stores in Portgual and several Screwfix stores in Germany. It is also on the lookout for a strategic partner to assist B&Q China, which is losing money.
The group has also announced that it has sold its 21.2 % share in Germany Hornbach for 195 million pounds (233 million euro) to a group of international investors.