Last checked at 
(Alliance News) - Kingfisher PLC on Tuesday posted a significant increase in profit for the first half of financial 2021, crediting the improvement to a strong sales recovery in the second quarter and a decrease in expenses.
Shares in the FTSE 100 DIY retailer were trading 6.4% higher at 281.80 pence each on Tuesday morning in London. They are up 30% so far in 2020.
For the six months ended July 31, the B&Q and Screwfix stores operator said sales for the six months to July 31 fell 1.3% to GBP5.92 billion, representing a fall of 1.6% on a like-for-like basis. However, pretax profit surged 62% to GBP398 million amid a decrease in selling & distribution expenses to GBP1.33 billion from GBP1.51 billion. Administrative costs also were reduced to GBP380 million from GBP396 million.
Adjusted pretax profit was up 23% at GBP415 million.
However, no interim dividend was declared, compared to 3.33p paid the year prior.
Looking ahead, Kingfisher said it has seen an "encouraging" start to the second half of the financial year, with third quarter like-for-like sales up 17% up to September 19. However, continued uncertainty over Covid-19 limits visibility on the sales outlook for the remainder of the year, it said.
"We delivered a resilient financial performance in the first half of the year, with the adverse impact of Covid-19 in the first quarter offset by a strong recovery in the second quarter. This recovery has continued into the third quarter to date, with growth across all banners and categories, said Chief Executive Thierry Garnier.
"While the near-term outlook is uncertain, the longer-term opportunity for Kingfisher is significant. There is a lot more to do, but the new team and new plan is now established in the business, and we are committed to returning Kingfisher to growth," he added.
The company added it intends to repay the GBP23 million revived by the UK government under the Covid-19 furlough scheme.
As at July 19, Kingfisher had cash of GBP1.75 billion.
By Ife Taiwo; ifetaiwo@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
