kgf31 May 2012 23:10
Positive Points:
With the first quarter typically one of the least significant of the year and with the key summer season still ahead, management remains confident that the company is well prepared to capitalise on any improvement in conditions and deliver a solid full year result.
The board noted that "we are making progress with our new programme of self-help initiatives, 'Creating the Leader', aimed at helping our customers have better, more sustainable homes and building a more valuable business for our shareholders."
Management's 'Delivering Value' programme over the last four years helped adjusted pre-tax profit more than double, up from £357 million in 2007/08 to £807 million in 2011/12. The detailing of plans for the next five years are estimated to generate an additional £300 million on an annualised basis.
Directors remain confident that tough economic times provide it with opportunity to gain market share.
Management initiatives to reduce group costs are ongoing.
Unlike UK rivals, the group enjoys geographical diversification, including Emerging Markets such as China, Poland and Russia.
For B&Q China, losses reduced to £5 million (2011/12: £7 million reported loss) reflecting continued tight cost management in what is traditionally the weakest trading quarter of the financial year, impacted by Chinese New Year.
The group should benefit from any recovery in housing markets such as the UK and Ireland.