Kingfisher has said it expects full-year pre-tax profit to be at the top end of current analyst estimates, with flat UK sales offset by stronger performances in its international businesses.
The group reported a dip in total sales of just 0.1% for the 13 weeks to January 29, equating to a lfl rise of 0.6%.

In the UK and Ireland, total sales went up 0.7% to £954m. At B&Q, total sales increased by just 0.1%, dipping 0.3% lfl and reflecting the bad weather in December and the weak market across the UK and Ireland. However, the cold weather saw sales of winter fuels and portable heaters soar, rising 43% and 11% year-on-year respectively. Winter grit and rock salt went up a massive 220% lfl during the quarter.

Gross margins are expected to be up slightly due to further shrinkage reduction and more direct sourcing.

Total sales at Screwfix grew 5.4% to £119m, up 2.6% on a lfl basis, boosted by new ranges, the continued roll out of trade counters and the addition of specialist trade desks for plumbers and electricians within existing outlets.

According to market analysts Credit Suisse, Kingfisher will deliver full year pre-tax profit at the top of the current consensus range of £661-672m, representing a 22% increase year-on-year.

Total sales in France went up 3% to £896m, with sales at Castorama increasing 4.7% lfl. China delivered a profit for the company, despite sales decreasing by 16.2% lfl, in what is traditionally the strongest trading quarter of the financial year. The sales decline reflected two fewer stores compared with Q4 last year and difficult comparatives (sales went up 29.2% lfl in Q4 2009). The turnaround plan for China remains "on track", said Kingfisher.

Group chief executive Ian Cheshire said: "We have ended another challenging year in robust shape. Our programme of self-help initiatives has continued to deliver profit growth and higher returns whilst strengthening the business for the future.

"Our international businesses delivered strong growth in the final quarter, more than offsetting some weather disruption and a weak market in the UK and Ireland, and so we expect to announce full-year profits towards the top end of the range of analyst estimates. Looking ahead we will continue with self-help activity in 2011 as we compete our successful Delivering Value plan and start to mobilise the next phase of our development."

The company will announce preliminary results for the year to January 29 on March 24, when it will also set out detailed milestones for the final year of the Delivering Value programme (2011/2012).

The key components of the plan are: driving up B&Q UK & Ireland's profit, exploiting the UK trade opportunity, expanding the French business, rolling out in Eastern Europe, turning around B&Q China, growing group sourcing and reducing working capital.