B&Q's parent company Kingfisher has released its annual results for the year ending January 31, 2016, with total sales up 3.8% for its entire operation despite a 20.5% fall in statutory pre-tax profits to £512m.
Like-for-liks rose by 2.3% overall and sales in the UK and Ireland were up 5.6%. Retail profit overall rose by 7.4%, leaping by an impressive 18% in the UK and Ireland, thanks largely to a Screwfix sales boost.

The adjusted pre-tax profit of £686m was "driven by strong UK profit growth, impacted by £46m adverse foreign exchange movements on the translation of non-sterling retail profits."

The company was also able to return £432m of cash to shareholders.

Among its recent highlights, Kingfisher said the latest period showed its first wave of unifying the 'core essentials' range, in store from March 2016. It is also on track to close 65 B&Q stores by the end of the next financial year, as well as exit leases secured on 40 of the stores.

It is expecting to deliver £500m sustainable annual profit over the next five years.

Kingfisher chief executive officer Veronique Laury said: "This has been a very productive and important year. We have delivered a good 'business as usual' result with both sales and profit growth in constant currencies, driven by our performance in Poland and the UK, driven largely by Screwfix, and a stable performance in France.

"We have also delivered solid progress on the first sharp decisions announced last year. I am really pleased with the focus and the energy that the team has demonstrated during the year.

"In addition, in January we revealed our ambition and our five year plan. By putting customer needs first we will, by the end of that period, deliver a £500 million sustainable annual profit uplift, over and above 'business as usual'. It is an ambitious plan. However based on the solid progress so far, and the competence and enthusiasm of our colleagues, we feel very confident in our ability to deliver."

Chief financial officer Karen Witts added: "We have set ambitious and clear five year financial targets, which will drive a considerable increase in the value of our business for shareholders. We are tracking our progress against our financial and operational milestones, and we will update as we progress.

"Our balance sheet remains strong, enabling us to continue to invest in the business and in the transformation, whilst also returning surplus capital to shareholders, in addition to the ordinary annual dividend.

"In the short term, the fundamentals of the UK economic backdrop remain positive, although we remain cautious on the outlook for France. The outlook for the wider global economy remains uncertain, and the impact of the outcome of the UK EU referendum is unknown."

Read more in the April 8 issue of DIY Week.