Kingfisher will survive squeeze

THE B&Q home improvements group Kingfisher says it should be able to withstand any squeeze on consumer spending sparked by today's Budget.

Reporting full-year results at the top end of analysts' expectations, chief executive Gerry Murphy said that while the economic outlook for retailers is broadly stable, it is coloured by 'the general expectation of some pressure on consumers' disposable incomes from higher taxes, interest rates and pension contributions'.

He added: 'While these trends are unhelpful for consumption generally, home improvement has proved to be relatively resilient in the past and the board believes that Kingfisher's international dimension and its ability to provide great value to customers means the group is well positioned for continuing growth.'

Pre-tax profits for the year to 31 January rose 15% to £591m after stripping out the impact of the major restructuring moves of the past year, which included the demerger of Comet electricals arm Kesa. Sales of the continuing operations were ahead by 15% to £7bn and the total dividend is 9.65p.

Murphy said the group now makes 41% of its sales and earns 39% of its profits from operations outside the UK, which include the Castorama DIY chain in France.

Overseas highlights included a move into profit in China for the first time. The group opened seven new stores there and made a profit of £400,000 on sales of £131m. At home, B&Q consolidated its position as industry leader, pushing its market share ahead from 13.5% to 14.4%.