UPDATE 1-Kingfisher says UK market 'more uncertain' as profit edges higher

LONDON, March 21 (Reuters) - Kingfisher, Europe'ssecond largest home improvement retailer, beat forecasts with a1.3 percent rise in annual profit but said the outlook for itsmain markets was mixed and Britain was "more uncertain".

The group trades as B&Q and Screwfix in Britain andCastorama and Brico Depot in France and elsewhere.

Led by Chief Executive Véronique Laury, Kingfisher, whichtrails France's Groupe Adeo, has just finished the second yearof a five-year plan to boost annual profit by 500 million pounds($701 million) from 2021.

The plan, costing 800 million pounds over five years todeliver, involves unifying product ranges across its variousbrands, boosting e-commerce and seeking efficiency savings.

Laury said "good progress" had been made so far and she wasconfident the plan would be delivered.

But she cautioned Kingfisher's outlook was mixed. "The UK ismore uncertain, France is encouraging yet volatile, whilst themarket in Poland remains supportive," she said on Wednesday.

Kingfisher made an underlying pretax profit of 797 millionpounds in the year to Jan. 31 2018 - ahead of analysts' averageforecast of 783 million pounds and the 787 million it made in2016-17.

The outcome reflected a weak performance in France offset bystrong growth at Screwfix in Britain and in Poland.

Sales rose 3.8 percent to 11.7 billion pounds and Kingfisherraised its dividend by 4 percent to 10.8 pence.

($1 = 0.7131 pounds)(Reporting by James Davey; editing by Sarah Young)