A focus on the bottom line has seen B&Q's UK and Ireland operations increase gross profit by more than 10% in the full year to January 29 2011, despite a 3.3% like-for-like sales decline.
Sales for B&Q UK and Ireland were £3.9bn with a gross profit of £215m. However, the decline in sales, and corresponding rise in profits, were part of a "tactical decision in Q2 to limit the use of general, store-wide promotions".

Driving up B&Q's UK profit is top of the agenda in the group's seven-point 'Delivering Value' programme, and it seems the focus is paying off as retail margin (gross margin) has risen to 5.2%, from 3.2% in 07/08. It means, said the group, that B&Q is on track to achieve its aim of a 7% margin by the end of the 2011/12 financial year.

The bigger picture also shows a longer-term upturn sales strength, B&Q UK's sales in Q4 (Nov 10 - Jan 11) were down 0.3%. The comparable figure a year ago was 3.5% down, and a year before that it was 5.9% down. So the UK business actually ended the year on a three-year high and that's in spite of the impact of the bad weather in December and January.

However, full year like-for-like sales were impacted by the pre-opening disruption caused by the Tradepoint launch, as well as the expected cannibalisation of building product sales. The Tradepoint proposition is growing, said the company, and annualised trade sales are already accounting for 15% of total store sales compared with about 10% before the Tradepoint launch.

Screwfix was the star of the show when it came to UK profits and bucked the sales trend, showing a total sales increase of 1.6% (£479m) and a retail profit of £28m, an increase of 24.7%. The group opened 15 new outlets in the financial year taking the total to 162 - which account for 60% of Screwfix total sales. Sales were also boosted by the addition of 103 specialist trade desks for plumbers and electricians within Screwfix branches.

The broader group picture follows the same lines as the B&Q results. Group sales declined 0.9% on a like-for-like basis to £10,450m, but "self-help initiatives' within the group saw total pre-tax profit increase 22.5% to £670m.

On the back of the profitability drive, which is likely to accelerate as Kingfisher continues with its strategy to focus on own-brand development and increased levels of direct sourcing, group ceo Ian Cheshire outlined plans to increase the global store network from 856 to 1,100. How many of those are likely to be in the UK is not clear.

He said: "We have delivered another year of strong profit growth and cash generation in what continue to be challenging times for our customers around the world.

"Our 'Delivering Value' programme of self-help has been a great success so far with profits almost doubled since it started, return on capital up sharply and financial net debt eliminated. Despite significant economic headwinds over the last few years we are now a stronger, more valuable business. I am also delighted that we are now better able to accelerate our expansion where economic returns have been proven."

Looking to the future, he added: "although I see no let up in the challenging environment in the short-term, I am excited by our future prospects."