23rd Mar 2016 07:18
LONDON (Alliance News) - Kingfisher PLC on Wednesday reported a drop in profit in its recently-ended financial year as it booked higher exceptional costs and revenue was hit by negative currency movements, but the DIY retailer said it is on track with its turnaround plan.
Kingfisher said pretax profit in the year ended January 31 dropped to GBP512 million from GBP644 million the year before, as revenue fell to GBP10.44 billion from GBP11.0 billion.
The FTSE 100 retailer said revenue was reduced by unfavourable movements in foreign exchange rates, as well as by the closure of some B&Q stores. Profit was hit by an increase in exceptional item costs from GBP35 million to GBP166 million.
Kingfisher said it is on track with its five-year transformation plan, which aims to deliver a GBP500 million profit uplift by the end of the fifth year.
Kingfisher will pay a full-year dividend of 10.1 pence, up 1.0% on 10.0p the year before.
"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," Chief Financial Officer Karen Witts said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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