"A busy and productive year"

Sales - 13 weeks to 30 January 2010
% Total
% Total
% LFL
2009/10
£m
Change
(Reported)
Change
(Constant currency)
Change
(Constant currency)
France
918
-2.1%
-2.7%
-4.6%
UK & Ireland
949
-2.3%
-2.3%
-3.9%
Other International
441
1.0%
3.9%
3.6%
Total Group
2,308
-1.6%
-1.3%
-3.0%
Ian Cheshire, Group Chief Executive, said: "Underlying sales trends remained relatively resilient in the fourth quarter before trading in January was significantly disrupted by the heavy snow and low temperatures across Europe, particularly in the UK and Poland. However, our on-going programme of self-help initiatives on gross margin and costs resulted in strong quarterly profit growth and so we expect our full year earnings will be slightly ahead of current analyst consensus expectations when we announce our annual results next month. "After what has been a busy and productive year I am pleased that we now have a stronger balance sheet, a very experienced leadership team and a clear set of well-established 'Delivering Value' initiatives to drive higher cash returns and future growth."All figures and comments below refer to the quarter ended 30 January 2010 in constant currencies France (Castorama and Brico Dépôt) Total sales of £918 million declined by 2.7 per cent, down 4.6 per cent LFL. Excluding adverse weather and calendar impacts, LFL is estimated to have been down around 2.6 per cent. Castorama total sales declined by 2.0 per cent to £482 million (-3.6 per cent LFL, -2.9 per cent on a comparable store basis). Brico Dépôt total sales declined by 3.4 per cent to £436 million (-5.7 per cent LFL). Gross margins are expected to be broadly flat compared with Q4 last year, with higher own-brand sales penetration and buying optimisation benefits offsetting increased promotional activity across both businesses. UK (B&Q in the UK & Ireland and Screwfix) B&Q total sales declined by 1.6 per cent to £836 million (-3.5 per cent LFL) reflecting exceptional adverse weather in January with all categories displaying similar trends. Prior to the adverse weather, LFL was slightly up. Gross margins are expected to be strongly up reflecting reduced promotional activity compared to Q4 last year, better sales of higher margin products and continued shrinkage reduction and supply chain cost efficiencies. Screwfix continued to limit the impact of a challenging trade market with total sales declining 1.4 per cent to £113 million, supported by the continued roll-out of trade counters. Other internatinal (Poland, China, Spain and Russia) In Eastern Europe Poland delivered flat total sales of £225 million, down 4.7 per cent LFL, having been significantly impacted by adverse weather. Total sales in Russia grew 15.5 per cent to £45 million and in Spain by 15.9 per cent to £44 million. In China total sales grew 3.3 per cent to £127 million despite there being 20 fewer stores now trading compared to Q4 last year. LFLs were up 29.2 per cent, down 31.2 per cent in Q4 last year. A much stronger housing market in most regions also drove customer demand for home improvement. For the year ended 30 January 2010
Sales
% Total
% Total
% LFL
2009/10
£m
Change
(Reported)
Change
(Constant currency)
Change
(Constant currency)
France (1)
4,242
9.1%
-0.6%
-3.4%
UK & Ireland (2)
4,442
1.4%
1.2%
-0.1%
Other International (3)
1,819
3.5%
5.1%
-0.2%
Total Group
10,503
4.8%
1.1%
-1.5%
(1) Castorama and Brico Dépôt. (2) B&Q in the UK & Ireland and Screwfix. Prior year figures include the now ceased Trade Depot trial and have been restated to include Ireland. (3) Poland, China, Spain and Russia. 2009/10: £1 = 1.13 euro (2008/09: £1 = 1.24 euro) 2009/10: £1 = 4.86 Polish zloty (2008/09: £1 = 4.39 Polish zloty) 2009/10: £1 = 10.79 Chinese renminbi (2008/09: £1 = 12.51 Chinese renminbi)