Profit up

Kingfisher, Europe’s biggest home improvement group, completed the first half of the 2008/2009 financial year with sales in constant currency up by 2.5 per cent to £ 5.130 bn (€ 6.507 bn), or -2.6 per cent like-for-like. Retail profit rose 8.6 per cent to £ 277 mio (€ 351 mio) and pre-tax profit saw a 23 per increase to £ 214 mio (€ 271 mio). The development of business in Britain continued to present the group with problems: sales fell 0.4 per cent to £ 2.312 bn (€ 2.932 bn), or -4.8 per cent like-for-like. Sales in France were 3.2 per cent up in constant currency to £ 1.927 bn (€ 2.444 bn), though down -0.7 per cent like-for-like. In the other countries – Poland, Russia, China, Turkey (joint venture) and Germany (stake in Hornbach) – sales were 9.4 per cent up to £ 891 mio (€ 1.130 bn). A sales drop of 0.6 per cent was reported in like-for-like terms. Kingfisher has agreed to sell the Castorama stores in Italy to the French group Adeo (Leroy Merlin) and, according to a report from Reuters, would also part with its stake in Hornbach in Germany, provided the price was right.