Kingfisher flies despite B&Q slowdown

SALES growth has slowed at B&Q as the DIY chain feels the impact of reduced consumer spending, but profits at owner Kingfisher have continued to move ahead after further cost-cutting.

The 2.5% like-for-like gain at B&Q in the first half fell to 1.3% in the third quarter but profits were up by 8.2% to £97.5m. Taking in the group's French and international operations, profits for the 13 weeks to 30 October were ahead by 8.5% at £190m, in line with analysts' expectations. Sales rose by 9.6% to £1.94bn.

Chief executive Gerry Murphy said it had been a tougher quarter in the UK and France. As well as the spending slowdown, the market saw an increase in competition.

Cost-cutting helped deliver an increase in margins at B&Q, from 9.5% to 9.8%. It is axeing 70 jobs at its Southampton headquarters.

There were strong sales of kitchens, bathrooms and bedrooms, although seasonal ranges such as garden furniture and heating products remained weak.

The Screwfix Direct internet business, which has been hit by supply problems, fell into the red by £1.1m against a profit of £5.8m last time.

The Castorama business in France was also hit by a consumer spending slowdown, and like-for-like sales edged ahead by only 0.3%.

There was a 31% increase in profits in the rest of the world to £26.8m, reflecting Kingfisher's big push overseas.