London, 2014-3-25 — /EPR Retail News/ — Full year dividend up 5% and announcing a multi-year capital return programme in 2014/15.
Group Financial Summary
| % Total Change | % Total Change | % LFL* Change | |||
|---|---|---|---|---|---|
| 2013/14 | 2012/13 | Reported | Constant currency 52 week basis | Constant currency | |
| Sales* | £11,125m | £10,573m | +5.2% | +3.5%(1) | +0.7% |
| Retail profit*(2) | £805m | £778m | +3.5% | +0.7%(1) | |
| Adjusted* pre-tax profit | £744m | £715m | +4.1% | ||
| Adjusted basic EPS | 23.4p | 22.3p | +4.9% | ||
| Interim dividend | 3.12p | 3.09p | +1.0% | ||
| Final dividend | 6.78p | 6.37p | +6.4% | ||
| Full year dividend | 9.9p | 9.46p | +4.7% | ||
| Net cash* | £238m | £38m | n/a |
* Throughout this release ‘*’ indicates first instance of a term defined or explained in the glossary in Section 5 of this release.
(1) On a 52 week basis*
(2) 2012/13 comparatives restated by £3m in the UK & Ireland division to reflect reclassification of pension administrative expenses from finance costs to retail profit, as per the amended IAS 19
2013/14 Highlights
- Good progress in tough environment
- Extremely challenging Q1, remainder of year more encouraging, except for persistent weak economic backdrop in France*
- Reported adjusted PBT up 4.1% and stronger underlying progress
- Market share growth in France, UK and Poland
- Grown Economic Profit (KEP*) to £74m
- Strong free cash flow* generation of £559m after capital expenditure
- Exceptional accounting gain of £131m principally relating to the successful resolution of the Kesa demerger French tax case
- ‘Creating the Leader’ programme continues to progress, on-going self-help initiatives supporting short-term performance whilst positioning the business for future growth
- B&Q UK & Ireland’s accelerated evolution now underway, led by strengthened team
2014/15 New Developments
- A multi-year programme of additional capital returns to shareholders, starting with around £200m during the financial year 2014/15
- Two new country entries planned. Two Brico Dépôt stores to open in Portugal and four Screwfix outlets to open in Germany with full next day national delivery
- Combined investment impact on 2014/15 profit will be a net charge of around £10m
- Disposal agreed on 24 March 2014 of the entire 21.2% stake in Hornbach for approximately £195m following a review of this strategic investment
- Intention to look for a strategic partner for B&Q China (to replicate the successful partner approach in Turkey)
Statutory reporting
| 2013/14 | 2012/13 | Reported Change | ||
|---|---|---|---|---|
| Note: A reconciliation to adjusted measures above is set out in the Financial Review (Section 4). | ||||
| Profit before taxation | £759m | £691m | +9.8% | |
| Profit for the year | £710m | £564m | +25.9% | |
| Basic EPS | 30.0p | 24.1p | +24.5% | |
Kingfisher’s Group Chief Executive, Sir Ian Cheshire, said;
“We finish a challenging year in good shape, with our self-help programme meaning we have grown profit and economic return, improved our balance sheet strength whilst also investing in lower prices for our customers and improved convenience. The economic backdrop was generally soft across Europe for much of the year, particularly in France, our most significant market.
“Looking ahead we are well placed to benefit from a pick-up in consumer spending as Europe’s economies return to growth. Our prospects remain bright, giving us confidence to invest in the business and actively manage our portfolio, including expanding into new markets, whilst also commencing a programme of returning surplus capital to our shareholders, alongside the healthy annual dividend.”
Enquiries:
Ian Harding, Group Communications Director
020 7644 1029
Sarah Levy, Head of Investor Relations
020 7644 1032
Nigel Cope, Head of Media Relations
020 7644 1030
Matt Duffy, Investor Relations Manager
020 7644 1082
Clare Feast, Media Relations Manager
020 7644 1286
Brunswick
020 7404 5959
Further copies of this announcement can be downloaded from www.kingfisher.com or viewed on the Kingfisher IR iPad App available for free at the Apple App store. Video interviews with Sir Ian Cheshire (Group Chief Executive) and Karen Witts (Group Finance Director) are also available on the website and we can be followed on twitter@kingfisherplc.
Kingfisher American Depository Receipts are traded in the US on the OTCQX platform: (OTCQX: KGFHY) http://www.otcmarkets.com/stock/KGFHY/quote
Company Profile
Kingfisher plc is Europe’s leading home improvement retail group and the third largest in the world, with 1,124 stores in nine countries in Europe and Asia. Its main retail brands are B&Q, Castorama, Brico Dépôt and Screwfix. Kingfisher also operates the Koçtaş brand, a 50% joint venture in Turkey with the Koç Group.
The remainder of this release is broken down into five main sections:
- Creating the Leader’ update
- Trading review by major geography
- 2013/14 Summary data by geography
- Financial Review and, in part 2 of this release, the preliminary Financial Statements
- Glossary