Revamp hits profits at B&Q

Kingfisher, the owner of DIY chain B&Q, has seen its profits fall 2.8% after revamping its stores and product range. Last year, B&Q revamped 60% of its product ranges and modernised the layout of half of its retail space.

Pre-tax profits were £386 million in the year to 2 February compared to £397 million the previous year.

However, the chain performed better outside its home UK market in 2007. Profits at B&Q in Poland and France came in at 42% and 13% respectively.

Sales at B&Q in China were flat, when new store openings are excluded from the figures but the group said this was due to a slowdown in new apartment sales, but asserted that the Chinese market ‘remains fundamentally attractive‘.

Peter Jackson, the group’s Chairman, said we will focus on keeping costs down in the coming year. We made a major step forward in improving B&Q’s offer to customers, introducing more new products and modernising more store space than ever before.

UK home-improvement retailers have been battling a slowdown in consumer spending, with shoppers hit by increasing household bills and a weakening housing market.

The group has slashed its final dividend by 50% to 3.4p, making a total payout of 7.25p compared with 10.65p last year.

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