Kingfisher unveils cash return as profits improve

- Multi-year capital return programme announced- Pre-tax profit up 9.8 per cent- Sales up 5.2 per centKingfisher, Europe's largest home improvement retailer, said it would return 200m pounds to shareholders this year and expand into new markets after profits improved by a tenth in the 12 months ended February 1st.The company, which owns B&Q and Screwfix in the UK, said it would embark on a new multi-year programme of additional capital returns. "The timing and mechanism for this capital return will be kept under review to ensure we maximise value creation for our shareholders," it said.Profit before tax rose by 9.8% to £759m last year, as the company made "good progress in a tough environment". On an adjusted basis, which excludes exceptional items and other costs, profits rose 4.1% to £744m.Group sales rose by 5.2% to £11,125m. The full-year dividend was lifted by 4.7% to 9.9p per share."The economic backdrop was generally soft across Europe for much of the year, particularly in France, our most significant market," said Chief Executive Sir Ian Cheshire.Nevertheless, sales in France still grew by 5.5% to £4,423m. This compared with 1.1% growth in the UK and Ireland to £4,363m as strong growth at Screwfix (15.2%) was offset by falling revenues at B&Q (-1.1%). The Other International division, comprising Poland, China, Russia, Romania and Spain, registered growth of 13.3% to £2,339m."Looking ahead we are well placed to benefit from a pick-up in consumer spending as Europe's economies return to growth," he said.For the year ending February 2015, Kingfisher expects to enter into two new countries this year with two Brico Dépôt stores planned in Portugal and four Screwfix outlets opening in Germany.Meanwhile, the firm is looking for a "strategic partner" for its B&Q China business to replicate its joint venture in Turkey.BC