7th Dec 2020 08:34
(Alliance News) - Kingfisher PLC on Monday said it will return in full the UK and Republic of Ireland business rates relief that it received as a result of the Covid-19 crisis.
Earlier this year, the B&Q and Screwfix stores chain owner repaid in full the GBP23 million it received under the UK government's Job Retention Scheme.
Kingfisher, which closed its stores earlier in the year due to the Covid-19 pandemic, said it benefited from the financial support measures it received from the UK and Irish governments, which helped protect jobs and cushion the blow from Covid-19 as a result of "significant uncertainty".
Since reopening its stores in late April and early May, Kingfisher said its sales performance has been strong, which has been supported by a higher demand for home improvement across its markets.
As a result of this, Kingfisher said it has decided to return the UK and Republic of Ireland business rates relief it received. Its total annual business rates bill eligible for this relief is around GBP130 million, of which GBP110 million falls in the 2021 financial year and the remainder in the 2022 financial year.
Chair Andy Cosslett said: "Kingfisher is in a sound financial position with continuing positive trading momentum, due to both strong consumer demand and the benefits of our strategy. We are pleased that we are in a position to do this, and hope that the money can now be redeployed by the government and local authorities where it is needed most."
The company now anticipates that financial adjusted profit before tax will include GBP85 million of non-recurring cost savings, compared to the previous guidance of GBP175 million.
Shares in Kingfisher were down 1.3% at 265.24 pence in London on Monday.
By Zoe Wickens; [email protected]
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