Kingfisher has been doing some of its own home repairs of late and it was sorely needed. The firm, under boss Sir Ian Cheshire, recently offloaded its German operations - over which it was unlikely to gain full control - and is attempting to buy-out French rival Mr.Bricolage. If it can generate sufficient cost savings then the latter operation may be worthwhile. In parallel, he's making better use of the company's space. Both initiatives are necessary to prop up the company's return on capital. At 10 per cent that is half of rival's Home Depot. Driving that point home, yesterday's full-year figures revealed a weaker than expected 19 per cent jump in profits despite flattering base effects. The first quarter of last year was simply awful. Finally, the company is returning cash to shareholders. As long as the weather plays ball return on capital should tick up, writes the Financial Times' Lex column. There are those who worry that Severn Trent is the likeliest of the three remaining quoted water companies which will cut its dividend come the next regulatory round next spring. In fact, at one extreme there are those who anticipate a 20% reduction due to the size and structure of the company's debt. Furthermore, the new Chief Executive, who has only been at the helm for eight weeks, cannot yet give much guidance on future dividend policy - in part because it is still too soon to say. In any case, the fact remains that earlier regulatory reviews have been quite benign. In any case, the above view seems excessively bearish. As well, dividends in the past financial year and for the current one are promised to expand at a rate of inflation plus 3%, among the most generous in the sector. At a dividend yield of 4.1%, however, the shares are worth holding despite the regulatory uncertainties, writes The Times' Tempus. Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.AB