Weak financial year

Kingfisher, Europe's leading home improvement retailer, recorded sales of £ 8.010 bn in the 2005/06 financial year (ended 28 January). This amounts to an increase of 4.7 per cent, or 3.9 per cent in constant currency. Like-for-like sales were 2.2 per cent down.
United Kingdom
Total sales in the United Kingdom declined by 2.5 per cent to £ 4.172 bn, resulting in a like-for-like figure down by 6.3 per cent. Kingfisher's B&Q format recorded total sales of £ 3.900 bn, which amounts to a decline of 3.7 per cent, or 7.8 per cent like-for-like. According to information from the company, however, B&Q still outperformed the overall DIY market. All product categories were weak, though trade-related sales remained relatively resilient.
In the trade sector, Kingfisher's Screwfix Direct performed well, with sales up by 37.1 per cent to £ 71.3 mio. There was growth in all product categories, in particular bathrooms and power tools. The six new Trade Counter outlets are reportedly making good progress, and 15 more are to be opened this year. In the fourth quarter came the launch of Kingfisher's new Trade Depot building materials format, with encouraging results from the first two stores.
France
Kingfisher grew sales in France by 7.0 per cent (6.3 per cent in constant currency) to £ 2.724 bn, an increase of 2.7 per cent like-for-like.
Castorama's sales rose by 0.8 per cent (0.1 per cent in constant currency) to £ 1.582 bn. The company recorded sales down by 0.2 per cent in like-for-like terms.
New decorative products and display areas that were introduced in the first six months of the year continued to produce improved sales, additionally supported by major catalogues.
The Brico Dépôt discount chain provided further momentum for growth in France, where it now has 73 outlets. They generated sales growth of 17.1 per cent for a total of £ 1.142 bn in the recently-completed financial year. The increase amounted to 16.3 per cent in constant currency and 7.3 per cent like-for-like.
Rest of world
The Castorama stores in Poland recorded sales up by 29.5 per cent (15.0 per cent in constant currency) to £ 417.0 mio. Like-for-like volume growth amounted to 1.7 per cent. The like-for-like increase came to 31.1 per cent in the fourth quarter, resulting from consumers taking advantage of a year-end deadline for tax relief on construction and renovation projects. The number of stores rose by one new opening to 30 altogether.
Castorama grew by 16.3 per cent to £ 266.9 mio in Italy. The increase came to 15.6 per cent in constant currency, and sales in like-for-like terms were 5.8 per cent up on the previous year.
Sales in Spain and Ireland are reported together. They came to £ 111.3 mio, which amounts to growth of 77.8 per cent (76.9 per cent in constant currency) and minus 2.7 per cent like-for-like. Since the market in Spain is reporting positive progress, the like-for-like minus must presumably be attributed to the B&Q stores in Ireland for the most part.
Sales in China rose by 47.8 per cent to £ 312.8 mio. Growth in constant currency was 47.8 per cent, and the like-for-like increase amounted to 7.4 per cent. This growth was driven by rising sales to trade customers and greater demand for installation services. By the end of the financial year there were 48 stores operating in China under the B&Q logo. The integration of the 13 stores acquired from Obi in June 2005 is progressing well, with the opening of the first completely revamped outlets taking place during the fourth quarter. The conversion process is scheduled for completion during the summer of 2006.
£ 1 = € 1.4649