25th Jan 2016 07:18
LONDON (Alliance News) - Kingfisher PLC on Monday announced a five-year plan to deliver a GBP500 million annual profit uplift by the end of the fifth year and a capital return of GBP600 million over the next three years.
The DIY retailer said it will deliver the GBP500 million profit uplift on top of the profit it will generate from normal business. It expects its performance pre-transformation to be broadly in line with the macroeconomic backdrop in its respective markets, Kingfisher said.
Kingfisher's reported pretax profit of GBP644 million in the financial year to January 31, 2015.
Reported profit, before the benefits of the transformation plan, will be hit by GBP50 million in the first year of the plan and by between GBP70 million and GBP100 million in the second year, Kingfisher warned.
The company also expects to book a cash cost of GBP800 million in relation to the plan.
The GBP600 million capital return to shareholders will likely be via a share buyback and will be on top of the annual ordinary dividend.
"With a clear roadmap now in place alongside clear long-term targets, the size of the five-year opportunity is significant. We do acknowledge the challenges ahead. However having already made good progress since March last year, and with 80,000 committed colleagues, we feel confident about our plan and look forward to moving on to the first year of our transformation," Kingfisher Chief Executive Véronique Laury said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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