Kingfisher increases focus

Kingfisher, the company behind the Screwfix and B&Q brands, has seen like-for-like sales grow 1.6% in the first half of its 2011-2012 financial year with total sales, including newly acquired assets, rising 3.8%.Headline pre-tax profits rose 24% during the year to £439m from £354m last year, and the company's interim dividend has gone up to 2.47p, a rise of 28.3%.The results reveal Kingfisher's French division, which includes the Castorama, Brico Dépôt brands, has seen retail profits boosted by 23.9% to £201 million.The picture in the UK was slightly less rosy as B&Q had to compete with a stock clearance by its rival Focus DIY which ceased trading. However Focus's woes also presented an opportunity for Kingfisher as it bought 29 ex-Focus stores and turned them into B&Qs at a cost of £24m.For the group as a whole, sales in the 26 weeks ended July were up 3.0% on a constant exchange rates (CER) basis to £5,662m from £5,454m the year before. Retail profit rose 16.5% using CER to £473m from £402m last year.The group said it is on target to grow sales to the professional tradesman to £1 billion in 2011/12.Free cash flow of £133m was generated in the period, a decrease of £254m year-on-year due to increases in working capital and net capital expenditure, which were partially offset by the increase in operating profit. Further capital expenditure of £20m is slates for the Focus stores during the rest of the year, and £13m of exceptional costs will be incurred as the compay gives the Focus stores a makeover before reopening them.Ian Cheshire, Group Chief Executive, said: "We have delivered very strong profit growth in what are difficult times for all retailers. With around two thirds of our profit coming from outside the UK, these results clearly show the value of geographic spread and the benefits of operating our market leading international businesses in a more unified way." BS