20th Sep 2007 07:01
Kingfisher PLC20 September 2007 KINGFISHER PLC CONSOLIDATED INCOME STATEMENT (UNAUDITED) For the half year ended 4 August 2007 Half year ended 4 August 2007 Half year ended 29 July 2006 Before Exceptional Total Before Exceptional Total exceptional items exceptional items£ millions Notes items (note 4) items (note 4)Continuing operations:Revenue 3 4,775.1 - 4,775.1 4,349.1 - 4,349.1Cost of sales (3,147.4) - (3,147.4) (2,860.0) - (2,860.0)Gross profit 1,627.7 - 1,627.7 1,489.1 - 1,489.1Selling and distribution (1,191.0) - (1,191.0) (1,081.8) - (1,081.8)expensesAdministrative expenses (235.8) (10.7) (246.5) (216.9) - (216.9)Other income 10.6 47.9 58.5 11.2 42.0 53.2Share of post-tax results ofjoint ventures and associates 3 8.4 - 8.4 5.8 - 5.8Operating profit 219.9 37.2 257.1 207.4 42.0 249.4 Analysed as:Retail profit 3 240.1 32.2 272.3 231.5 42.0 273.5Central costs (18.7) 5.0 (13.7) (18.2) - (18.2)Amortisation of acquisition (0.1) - (0.1) (0.1) - (0.1)intangiblesShare of interest and taxation (1.4) - (1.4) (5.8) - (5.8)of joint ventures andassociates Finance income 18.9 - 18.9 10.6 - 10.6Finance costs (46.6) - (46.6) (36.9) - (36.9)Net finance costs 5 (27.7) - (27.7) (26.3) - (26.3) Profit before taxation 192.2 37.2 229.4 181.1 42.0 223.1 Income tax expense 6 (57.0) (13.8) (70.8) (62.4) 6.4 (56.0)Profit for the period 135.2 23.4 158.6 118.7 48.4 167.1 Attributable to:Equity shareholders of the 159.6 168.5CompanyMinority interests (1.0) (1.4) 158.6 167.1 Earnings per share 7Basic 6.8p 7.2pDiluted 6.8p 7.2pAdjusted (basic) 5.7p 5.1p The proposed interim dividend for the period ended 4 August 2007 is 3.85p pershare. KINGFISHER PLC CONSOLIDATED INCOME STATEMENT (UNAUDITED) For the half year ended 4 August 2007 Year ended 3 February 2007 Before Exceptional Total exceptional items£ millions Notes items (note 4)Continuing operations:Revenue 3 8,675.9 - 8,675.9Cost of sales (5,623.7) - (5,623.7)Gross profit 3,052.2 - 3,052.2Selling and distribution expenses (2,207.3) - (2,207.3)Administrative expenses (433.7) - (433.7)Other income 23.7 49.5 73.2Share of post-tax results of joint ventures andassociates 3 16.9 - 16.9Operating profit 451.8 49.5 501.3 Analysed as:Retail profit 3 503.7 49.5 553.2Central costs (39.1) - (39.1)Amortisation of acquisition intangibles (0.3) - (0.3)Share of interest and taxation of joint ventures andassociates (12.5) - (12.5) Finance income 24.8 - 24.8Finance costs (75.6) - (75.6)Net finance costs 5 (50.8) - (50.8) Profit before taxation 401.0 49.5 450.5 Income tax expense 6 (119.4) 7.3 (112.1)Profit for the year 281.6 56.8 338.4 Attributable to:Equity shareholders of the Company 336.8Minority interests 1.6 338.4Earnings per share 7Basic 14.4pDiluted 14.4pAdjusted (basic) 11.9p KINGFISHER PLC CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE (UNAUDITED) For the half year ended 4 August 2007 £ millions Notes Half year ended Half year ended Year ended 4 August 2007 29 July 2006 3 February 2007Actuarial gains on post employment benefits 7.0 62.3 95.3Currency translation differences 43.4 (15.0) (70.9)Cash flow hedgesFair value losses (5.3) (4.8) (9.1)Losses/(gains) transferred to inventories 4.2 (1.1) 3.1Tax on items recognised directly in equity (0.2) (17.0) (30.1)Net income/(expense) recognised directly in 49.1 24.4 (11.7)equityProfit for the period 158.6 167.1 338.4Total recognised income for the period 207.7 191.5 326.7 Attributable to:Equity shareholders of the Company 11 208.5 192.9 325.1Minority interests (0.8) (1.4) 1.6 207.7 191.5 326.7 KINGFISHER PLC CONSOLIDATED BALANCE SHEET (UNAUDITED) As at 4 August 2007 As at As at As at£ millions Notes 4 August 2007 29 July 2006 3 February 2007Non-current assetsGoodwill 2,552.5 2,555.3 2,551.5Intangible assets 85.9 100.4 89.5Property, plant and equipment 3,386.6 3,223.9 3,210.5Investment property 29.9 14.2 29.4Investments in joint ventures and associates 193.1 187.1 184.9Deferred tax assets 23.8 - 30.2Other receivables 36.2 45.3 46.6 6,308.0 6,126.2 6,142.6Current assetsInventories 1,773.5 1,474.1 1,531.0Trade and other receivables 497.2 560.4 505.4Current tax assets 1.0 4.8 14.6Other investments 38.3 10.2 28.4Cash and cash equivalents 370.4 576.3 394.5 2,680.4 2,625.8 2,473.9Total assets 8,988.4 8,752.0 8,616.5 Current liabilitiesTrade and other payables (2,318.5) (2,054.5) (1,958.3)Current tax liabilities (102.0) (62.2) (86.9)Borrowings (273.4) (249.8) (241.0)Provisions (42.8) (60.1) (56.3) (2,736.7) (2,426.6) (2,342.5) Non-current liabilitiesOther payables (50.8) (22.0) (50.8)Deferred tax liabilities (270.4) (217.7) (262.7)Borrowings (1,361.5) (1,480.5) (1,431.7)Provisions (58.5) (83.2) (53.2)Post employment benefits (32.8) (157.0) (54.6) (1,774.0) (1,960.4) (1,853.0)Total liabilities (4,510.7) (4,387.0) (4,195.5) Net assets 4,477.7 4,365.0 4,421.0 EquityShare capital 10 370.9 370.3 370.7Share premium 10 2,187.4 2,180.9 2,185.2Own shares held 10 (67.9) (90.4) (81.3)Reserves 11 1,981.1 1,897.6 1,939.9Minority interests 6.2 6.6 6.5Total equity 4,477.7 4,365.0 4,421.0 The interim financial report was approved by the Board of Directors on 19September 2007 and signed on its behalf by: Gerry Murphy Duncan Tatton-BrownGroup Chief Executive Group Finance Director KINGFISHER PLC CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED) For the half year ended 4 August 2007 £ millions Notes Half year ended 4 Half year ended 29 Year ended August 2007 July 2006 3 February 2007 Net cash flows from operating activities 12 389.9 427.4 559.4 Cash flows from investing activitiesPurchase of subsidiary and business undertakings, (0.9) (0.7) (2.2)net of cash acquiredPurchase of intangible assets (4.5) (12.2) (28.3)Disposal of intangible assets - - 0.1Purchase of property, plant and equipment and (278.3) (253.6) (438.6)investment propertyDisposal of property, plant and equipment and 86.1 210.2 251.0investment propertyNet purchase of other investments (7.9) (10.1) (29.3)Disposal of other investments - 0.4 0.4Dividends received from joint ventures and 1.5 0.8 5.1associatesNet cash flows from investing activities (204.0) (65.2) (241.8) Cash flows from financing activitiesInterest received 9.6 6.6 18.5Interest paid (31.8) (27.2) (70.3)Interest element of finance lease rental payments (2.8) (2.6) (5.8)Issue of Medium Term Notes and other fixed term - 252.4 252.4debtNet receipt/(repayment) of bank loans 35.9 (49.6) (133.3)Capital element of finance lease rental payments (4.2) (4.2) (11.8)Issue of share capital to equity shareholders of 2.4 4.9 10.8the CompanyIssue of share capital to minority interests 2.7 - 1.0Disposal of own shares held 1.5 2.5 7.1Dividends paid to equity shareholders of the (159.1) (158.5) (248.4)CompanyDividends paid to minority interests (2.4) (0.8) (2.1)Net cash flows from financing activities (148.2) 23.5 (181.9) Net increase in cash and cash equivalents and bank 37.7 385.7 135.7overdrafts Cash and cash equivalents and bank overdrafts at 244.8 113.7 113.7beginning of periodExchange differences 1.1 2.6 (4.6) Cash and cash equivalents and bank overdrafts at 283.6 502.0 244.8end of period KINGFISHER PLC NOTES TO THE INTERIM FINANCIAL REPORT (UNAUDITED) For the half year ended 4 August 2007 1. Basis of preparation The interim financial report for the half year ended 4 August 2007 has beenprepared in accordance with the Disclosure and Transparency Rules of theFinancial Services Authority and with IAS 34 Interim Financial Reporting asadopted by the European Union. This report should be read in conjunction withthe annual financial statements for the year ended 3 February 2007, which havebeen prepared in accordance with IFRSs as adopted by the European Union. The half year results are unaudited and were approved by the Board of Directorson 19 September 2007. The results for the year ended 3 February 2007 are based on full auditedaccounts prepared in accordance with IFRSs as adopted by the European Union.These accounts were filed with the Registrar of Companies and contain a reportof the auditors under section 240 of the Companies Act 1985, which does notcontain a statement under sections 237 (2) or (3) of the Companies Act 1985 andis unqualified. Use of adjusted measures Kingfisher believes that retail profit, adjusted pre-tax profit, adjustedpost-tax profit and adjusted earnings per share provide additional usefulinformation on underlying trends to shareholders. These measures are used byKingfisher for internal performance analysis and incentive compensationarrangements for employees. The terms 'retail profit', 'exceptional items' and 'adjusted' are not defined terms under IFRS and may therefore not be comparablewith similarly titled profit measures reported by other companies. It is notintended to be a substitute for, or superior to, GAAP measurements of profit.The term 'adjusted' refers to the relevant measure being reported excludingexceptional items, financing fair value remeasurements and amortisation ofacquisition intangibles. Retail profit is defined as operating profit beforecentral costs (principally the costs of the Group's head office), exceptionalitems and the Group's share of interest and taxation of joint ventures andassociates. The separate reporting of non-recurring exceptional items, which are presentedas exceptional within their relevant income statement category, helps provide anindication of the Group's underlying business performance. The principal itemswhich will be included as exceptional items are: • non trading items included in operating profit such as profits andlosses on the disposal or closure of subsidiaries, associates and investmentswhich do not form part of the Group's trading activities; • profits and losses on the disposal of properties; and • the costs of significant restructuring and incremental acquisitionintegration costs. 2. Accounting policies The accounting policies adopted are consistent with those of the annualfinancial statements for the year ended 3 February 2007, as described in thosefinancial statements. The following new standards, amendments to standards or interpretations aremandatory for the first time for the financial year ending 2 February 2008. • IFRS 7 Financial Instruments: Disclosures, IAS 1 Amendments toCapital Disclosures, and IFRS 4 Insurance Contracts revised implementationguidance. As this interim report contains only condensed financial statements,and as there are no material financial instrument related transactions in theperiod, full IFRS 7 disclosures are not required at this stage. The full IFRS 7disclosures, including the sensitivity analysis to market risk and capitaldisclosures required by the amendment of IAS 1, will be given in the annualfinancial statements. • IFRIC 7 Applying the Restatement Approach under IAS 29 FinancialReporting in Hyperinflationary Economies. This interpretation is not relevantfor the Group. • IFRIC 8 Scope of IFRS 2. This interpretation has not had any impacton the recognition of share-based payments in the Group. • IFRIC 9 Reassessment of Embedded Derivatives. This interpretation hasnot had any impact on the Group. • IFRIC 10 Interim Financial Reporting and Impairment. Thisinterpretation has not had any impact on the Group. 3. Segmental analysis Half year ended 4 August 2007 £ millions United France Poland Rest of Asia Total Kingdom Europe External revenue 2,321.0 1,614.4 330.8 281.8 227.1 4,775.1Retail profit 85.0 104.7 45.5 15.9 (11.0) 240.1Exceptional items before central costs 39.8 3.2 (0.1) - (10.7) 32.2Amortisation of acquisition intangibles - - - - (0.1) (0.1)Less: Share of operating profit of joint ventures and - (0.5) - (7.1) (2.2) (9.8)associates Segment result before joint ventures and associates 124.8 107.4 45.4 8.8 (24.0) 262.4Share of post-tax results of joint ventures and - 0.3 - 6.6 1.5 8.4associates Segment result 124.8 107.7 45.4 15.4 (22.5) 270.8Central costs (13.7)Operating profit 257.1Net finance costs (27.7)Profit before taxation 229.4Income tax expense (70.8)Profit for the period 158.6 Half year ended 29 July 2006 £ millions United France Poland Rest of Asia Total Kingdom EuropeExternal revenue 2,169.7 1,497.0 230.7 242.7 209.0 4,349.1Retail profit 90.5 95.5 27.8 24.3 (6.6) 231.5Exceptional items before central costs 43.3 0.3 (1.6) 0.1 (0.1) 42.0Amortisation of acquisition intangibles - - - - (0.1) (0.1)Less: Share of operating profit of joint ventures and - (0.5) - (8.2) (2.9) (11.6)associates Segment result before joint ventures and associates 133.8 95.3 26.2 16.2 (9.7) 261.8Share of post-tax results of joint ventures and - 0.3 - 3.4 2.1 5.8associates Segment result 133.8 95.6 26.2 19.6 (7.6) 267.6Central costs (18.2)Operating profit 249.4Net finance costs (26.3)Profit before taxation 223.1Income tax expense (56.0)Profit for the period 167.1 Year ended 3 February 2007 £ millions United France Poland Rest of Asia Total Kingdom EuropeExternal revenue 4,261.5 2,955.2 507.9 494.6 456.7 8,675.9Retail profit 182.6 206.3 58.4 52.0 4.4 503.7Exceptional items before central costs 50.5 (1.0) (0.5) - 0.5 49.5Amortisation of acquisition intangibles - - - - (0.3) (0.3)Less: Share of operating profit of joint ventures and - (0.8) - (23.2) (5.4) (29.4)associates Segment result before joint ventures and associates 233.1 204.5 57.9 28.8 (0.8) 523.5Share of post-tax results of joint ventures and - 0.5 - 12.5 3.9 16.9associates Segment result 233.1 205.0 57.9 41.3 3.1 540.4Central costs (39.1)Operating profit 501.3Net finance costs (50.8)Profit before taxation 450.5Income tax expense (112.1)Profit for the year 338.4 The Group's primary reporting segments are geographic, with the Group operatingin four main geographical areas, being the UK, France, Rest of Europe and Asia.The 'Rest of Europe' segment consists of B&Q Ireland, Castorama Poland,Castorama Italy, Castorama Russia, Brico Depot Spain, Koctas and Hornbach.Poland has been shown separately as it meets the reportable segment criteria asprescribed by IAS 14 Segment Reporting. The 'Asia' segment consists of B&QChina, B&Q Taiwan and B&Q Home in South Korea. The Group's revenues, although not highly seasonal in nature, do increase overthe Easter period and during the summer months leading to slightly higherrevenues being recognised in the first half of the year. 4. Exceptional items Half year ended Half year ended Year ended£ millions 4 August 2007 28 January 2006 3 February 2007Included within administrative expensesLoss on closure of B&Q Home in South Korea (10.7) - - Included within other incomeProfit on disposal of properties 42.9 41.6 49.1Profit on disposal of available for sale financial assets - 0.4 0.4Recovery of loan receivable previously written off 5.0 - - 47.9 42.0 49.5Exceptional items 37.2 42.0 49.5 Closure costs of £10.7m have been expensed in relation to the closure of B&QHome in South Korea. The Group has recorded £42.9m exceptional profit on disposal of properties inthe current period, of which £40.0 million arose in connection with the sale andleaseback of the Worksop Distribution Centre by B&Q UK. The Group has recognised £5.0 million income in relation to the repayment of aloan made to ProMarkt which had previously been written off as an exceptionalitem. 5. Net finance costs Half year ended Half year ended Year ended£ millions 4 August 2007 29 July 2006 3 February 2007Bank and other interest receivable 12.4 7.8 18.5Net interest return on defined benefit schemes 6.5 2.8 6.3Finance income 18.9 10.6 24.8 Bank and other interest payable (46.7) (35.1) (74.1)Less amounts capitalised in the cost of qualifying assets 1.3 0.7 1.2 (45.4) (34.4) (72.9)Finance lease charges (2.8) (2.6) (5.8)Financing fair value remeasurements 2.7 2.7 4.7Unwinding of discount on provisions (1.1) (2.6) (1.6)Finance costs (46.6) (36.9) (75.6) Net finance costs (27.7) (26.3) (50.8) 6. Income tax expense Half year ended Half year ended Year ended£ millions 4 August 2007 29 July 2006 3 February 2007UK corporation taxCurrent tax on profits for the period 14.5 16.9 30.2Adjustments in respect of prior years 0.2 - (0.3) 14.7 16.9 29.9Overseas taxCurrent tax on profits for the period 43.9 42.9 80.7Adjustments in respect of prior years 0.2 (0.1) (2.3) 44.1 42.8 78.4Deferred taxCurrent period 16.9 (3.7) 12.7Adjustments in respect of prior years (0.4) - (8.9)Adjustments in respect of changes in tax rates (4.5) - - 12.0 (3.7) 3.8 Income tax expense 70.8 56.0 112.1 The effective rate of tax on profit before exceptional items and excluding taxadjustments in respect of prior years and changes in tax rates is 32.0% (2006:34.5%), representing the best estimate of the effective rate for the fullfinancial year. The effective tax rate for the year ended 3 February 2007 was32.0%. The tax charge on exceptional items for the current period is £13.8m(2006: £6.4m credit). The tax credit on exceptional items for the year ended 3February 2007 was £7.3m, of which £2.7m related to adjustments in respect ofprior years. 7. Earnings per share Half year ended Half year ended Year endedPence 4 August 2007 29 July 2006 3 February 2007Basic earnings per share 6.8 7.2 14.4Effect of non-recurring costsExceptional items (1.6) (1.8) (2.1)Tax on exceptional items 0.6 (0.2) (0.3)Financing fair value remeasurements (0.1) (0.1) (0.2)Tax on financing fair value remeasurements - - 0.1Basic - adjusted earnings per share 5.7 5.1 11.9Diluted earnings per share 6.8 7.2 14.4Effect of non-recurring costsExceptional items (1.6) (1.8) (2.2)Tax on exceptional items 0.6 (0.2) (0.3)Financing fair value remeasurements (0.1) (0.1) (0.2)Tax on financing fair value remeasurements - - 0.1Diluted - adjusted earnings per share 5.7 5.1 11.8 The calculation of basic and diluted earnings per share is based on the profitfor the period attributable to equity shareholders of the Company of £159.6million (2006: £168.5 million). For the year ended 3 February 2007, the profitfor the year attributable to equity shareholders of the Company was £336.8million. The weighted average number of shares in issue during the period, excludingthose held in the Employee Share Ownership Plan Trust (ESOP), was 2,340.7million (2006: 2,331.8 million). The diluted weighted average number of sharesin issue during the period was 2,354.3 million (2006: 2,338.9 million). For theyear ended 3 February 2007, the weighted average number of shares in issue was2,333.0 million and the diluted weighted average number of shares in issue was2,343.8 million. 8. Dividends Half year ended Half year ended Year ended£ millions 4 August 2007 29 July 2006 3 February 2007Dividends to equity shareholders of the CompanyFinal dividend for the year ended 28 January 2006 of 6.8p - 158.5 158.5per shareInterim dividend for the year ended 3 February 2007 of 3.85p - - 89.9per shareFinal dividend for the year ended 3 February 2007 of 6.8p 159.1 - -per share 159.1 158.5 248.4 The proposed interim dividend for the half year ended 4 August 2007 is 3.85p per share, amounting to £90.9m. 9. Capital expenditure In the period, there were additions to intangible assets of £4.7m (2006:£12.2m). In the period, there were additions to property, plant and equipment andinvestment property of £279.9m (2006: £222.1m). In the period there weredisposals of, property, plant and equipment and investment property of £41.9m(2006: £164.3m). Capital commitments contracted but not provided for by the Group amounted to£35.1m. 10. Share capital, share premium and own shares held Number of Share Share Own shares ordinary shares capital premium held millions £ millions £ millions £ millionsAt 4 February 2007 2,359.0 370.7 2,185.2 (81.3)Shares issued under share schemes 1.1 0.2 2.2 13.4At 4 August 2007 2,360.1 370.9 2,187.4 (67.9) At 29 January 2006 2,353.3 369.8 2,175.3 (95.1)Shares issued under share schemes 2.9 0.5 5.6 4.7At 29 July 2006 2,356.2 370.3 2,180.9 (90.4) 11. Reserves Cash flow Translation Other Retained Total hedge reserve reserves earnings reserve£ millionsAt 4 February 2007 (3.0) 21.2 159.0 1,762.7 1,939.9Actuarial gains on post employment benefits - - - 7.0 7.0Currency translation differences - 43.2 - - 43.2Cash flow hedges - fair value losses (5.3) - - - (5.3)Cash flow hedges - losses transferred to inventories 4.2 - - - 4.2Tax on items recognised directly in equity 0.2 - - (0.4) (0.2)Net income recognised directly in equity (0.9) 43.2 - 6.6 48.9Profit for the period - - - 159.6 159.6Total recognised income for the period (0.9) 43.2 - 166.2 208.5Share-based compensation charge - - - 3.7 3.7Own shares disposed - - - (11.9) (11.9)Dividends - - - (159.1) (159.1)At 4 August 2007 (3.9) 64.4 159.0 1,761.6 1,981.1 At 29 January 2006 1.2 92.1 159.0 1,608.7 1,861.0Actuarial gains on post employment benefits - - - 62.3 62.3Currency translation differences - (15.0) - - (15.0)Cash flow hedges - fair value losses (4.8) - - - (4.8)Cash flow hedges - gains transferred to inventories (1.1) - - - (1.1)Tax on items recognised directly in equity 1.8 - - (18.8) (17.0)Net income recognised directly in equity (4.1) (15.0) - 43.5 24.4Profit for the period - - - 168.5 168.5Total recognised income for the period (4.1) (15.0) - 212.0 192.9Share-based compensation charge - - - 5.5 5.5Share-based compensation - shares awarded - - - (0.8) (0.8)Own shares disposed - - - (2.5) (2.5)Dividends - - - (158.5) (158.5)At 29 July 2006 (2.9) 77.1 159.0 1,664.4 1,897.6 12. Cash flows from operating activities Half year ended Half year ended Year ended£ millions 4 August 2007 29 July 2006 3 February 2007Operating profit 257.1 249.4 501.3Depreciation and amortisation 117.0 95.3 207.0Impairment losses - - 1.3Share-based compensation charge 3.7 5.5 9.0Share of post-tax results of joint ventures and associates (8.4) (5.8) (16.9)Profit on disposal of property, plant and equipment (38.5) (37.6) (43.9)Loss on disposal of intangible assets - - 5.7Profit on disposal of available for sale financial assets - (0.4) (0.4)Increase in inventories (222.3) (123.1) (215.0)Decrease in trade and other receivables 38.6 3.7 44.0Increase in trade and other payables 290.8 331.4 295.1Decrease in working capital 107.1 212.0 124.1Decrease in post employment benefits (8.9) (17.4) (82.5)Decrease in provisions (9.2) (14.7) (47.0)Cash generated by operations 419.9 486.3 657.7Income tax paid (30.0) (58.9) (98.3)Net cash flows from operating activities 389.9 427.4 559.4 13. Net debt Net debt comprises the Group's borrowings, interest rate and cross currencyswaps that hedge those borrowings (excluding accrued interest), bank overdraftsand obligations under finance leases, less cash and cash equivalents and currentother investments. Half year ended Half year ended Year ended£ millions 4 August 2007 29 July 2006 3 February 2007Cash and cash equivalents 370.4 576.3 394.5Current other investments 38.3 10.2 28.4Bank overdrafts (86.8) (74.3) (149.7)Bank loans (183.1) (233.5) (146.8)Medium Term Notes and other fixed term debt (1,295.7) (1,350.7) (1,306.6)Interest rate and cross currency swaps (excluding accrued (63.7) (9.9) (44.0)interest)Finance leases (69.3) (71.8) (69.6)Net debt (1,289.9) (1,153.7) (1,293.8) Half year ended Half year ended Year ended£ millions 4 August 2007 29 July 2006 3 February 2007Net debt at beginning of period (1,293.8) (1,355.2) (1,355.2)Net increase in cash and cash equivalents and bank 37.7 385.7 135.7overdraftsNet increase in current other investments 8.3 10.1 29.3Amortisation of issue costs of debt (0.4) (0.4) (0.9)Net increase in debt and lease financing (35.0) (198.2) (107.3)Exchange differences and fair value adjustments on (6.7) 4.3 4.6financial instrumentsNet debt at end of period (1,289.9) (1,153.7) (1,293.8) During the half year ended 29 July 2006, the Group issued $466.5 million (£252.4million) of fixed term debt through the US Private Placement market. Theproceeds were swapped to Sterling at floating interest rates. 14. Acquisitions There were no significant acquisitions in the current or prior half yearperiods. 15. Contingent liabilities Kingfisher plc has an obligation to provide a bank guarantee for £50.0m to theliquidators of Kingfisher International France Limited in the event thatKingfisher plc's credit rating falls below 'BBB'. The obligation arises from anindemnity provided in June 2003 as a result of the demerger of Kesa Electricals. In addition, the Group has arranged for certain bank guarantees to be providedto third parties in the ordinary course of business. 16. Related party transactions The Group's significant related parties are its associates and joint ventures asdisclosed in the Kingfisher plc Annual Report for 3 February 2007. There were nomaterial related party transactions in the period or prior half year period. STATEMENT OF DIRECTORS' RESPONSIBILITIES The Directors confirm that this condensed set of financial statements has beenprepared in accordance with IAS 34 as adopted by the European Union, and thatthe interim management report herein includes a fair review of the informationrequired by DTR 4.2.7 and DTR 4.2.8. The Directors of Kingfisher plc are listed in the Kingfisher plc Annual Reportfor 3 February 2007. There have been no changes in the period. By order of the Board Gerry MurphyGroup Chief Executive19 September 2007 Duncan Tatton-BrownGroup Finance Director19 September 2007 INDEPENDENT REVIEW REPORT TO KINGFISHER PLC Introduction We have been instructed by the Company to review the financial information forthe half year ended 4 August 2007 which comprises the consolidated incomestatement, the consolidated statement of recognised income and expense, theconsolidated balance sheet, the consolidated cash flow statement and the relatednotes. We have read the other information contained in the interim financialreport and considered whether it contains any apparent misstatements or materialinconsistencies with the financial information. Directors' responsibilities The interim financial report is the responsibility of, and has been approved by,the Directors. The Directors are responsible for preparing the interim financialreport in accordance with the Disclosure and Transparency Rules of the UnitedKingdom's Financial Services Authority. As disclosed in note 1, the annual financial statements of Kingfisher plc areprepared in accordance with IFRSs as adopted by the European Union. Thefinancial information included in this interim financial report has beenprepared in accordance with International Accounting Standard 34, "InterimFinancial Reporting", as adopted by the European Union. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board for use in the United Kingdom. A reviewconsists principally of making enquiries of management and applying analyticalprocedures to the financial information and underlying financial data and, basedthereon, assessing whether the disclosed accounting policies have been applied.A review excludes audit procedures such as tests of controls and verification ofassets, liabilities and transactions. It is substantially less in scope than anaudit and therefore provides a lower level of assurance. Accordingly we do notexpress an audit opinion on the financial information. This report, includingthe conclusion, has been prepared for and only for the Company for the purposeof the Disclosure and Transparency Rules of the Financial Services Authority andfor no other purpose. We do not, in producing this report, accept or assumeresponsibility for any other purpose or to any other person to whom this reportis shown or into whose hands it may come save where expressly agreed by ourprior consent in writing. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the half year ended4 August 2007. PricewaterhouseCoopers LLPChartered AccountantsLondon19 September 2007 SHAREHOLDER INFORMATION Copies of the results will be sent to shareholders on 10 October 2007 andadditional copies will be available from Kingfisher plc, 3 Sheldon Square,Paddington, London W2 6PX. The results can also be accessed on line at www.kingfisher.com as well as othershareholder information. Timetable of events 3 October 2007 Ex-dividend date for interim dividend 5 October 2007 Record date for interim dividend26 October 2007 Final date for receipt of Drip Mandate Forms by Registrars16 November 2007 Date for payment of interim cash dividend23 November 2007 Trade settlement date for the interim Drip dividend If shareholders wish to elect for the Dividend Reinvestment Plan (Drip), andhave not already done so, for the forthcoming interim dividend, a letter or DripMandate Form must be received by Kingfisher's Registrars, Computershare InvestorServices PLC, by 26 October 2007. Copies of the Terms and Conditions of the Drip can be obtained from Kingfisher'sRegistrars at the address below, by calling 0870 702 0129 or online atwww.kingfisher.com. Computershare Investor Services PLCPO Box 82The PavilionsBridgwater RoadBristolBS99 7NH This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Kingfisher