15th Sep 2015 06:16
LONDON (Alliance News) - Kingfisher PLC Tuesday reported a drop in profit in the first half of its financial year, which it said was hit by movements in currency exchange rates, but said that the business is on track in its turnaround programme.
The DIY retailer, which owns brands including B&Q, Screwfix, Catorama and Brico Dépôt, reported a 1.8% drop in pretax profit in the 26 weeks ended August 1 to GBP386 million from GBP393 million in the same period the year before, as sales fell 4.8% to GBP5.49 billion from GBP5.77 billion.
Kingfisher said that sales and profit were hit by adverse foreign exchange movements on the translation of non-sterling profits, but that it is progressing with its plan to turn the business around.
The company will pay an interim dividend of 3.18 pence, up 1% on the 3.15p it paid the prior year.
"We continue to believe our plans will drive an increase in the value of our business for shareholders, whilst at the same time optimising the generation and use of cash," Chief Financial Officer Karen Witts said in a statement.
"In the short term, whilst we remain encouraged by the macroeconomic backdrop in the UK, we remain cautious on the outlook for France," she added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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