Kingfisher, the DIY group which owns B&Q and Screwfix, today posted an 11% drop in pre-tax profit to £715m for the year to January 31, 2013. Retail Week takes a look at what the City thinks.

Kingfisher’s share price has increased 1.6% in the past three months but underperformed the sector and the European market’s 11% rally. Given the cold weather in the first quarter and the continuing tough macro-economic conditions this makes sense. However, on a positive note we think there are a few signs of improvement in the UK housing market and the dramatic year-on-year declines in French housing starts should moderate as FY13/14 progresses. What’s more the negative currency impact has reversed (at this stage) and thus, assuming the weather improves at some point, we are comfortable with our forecast for 10% PBT growth in FY13/14– Caroline Gulliver, Espirito Santo

Today’s final results have come in bang in line with the full-year profit before tax of £715m (down 11% on the previous year) that Kingfisher had guided to and we can’t see much new to talk about, with management insisting that the Creating the Leader programme is “on track” and that self-help initiatives limited the fall in profits created by the adverse FX translation move of £39m, the £25m impact of the bad UK summer weather and the general effect of weak consumer confidence. We can’t see any sign of any new thinking from the new finance director about the balance sheet and the potential for cash returns to shareholders or any sign of a current trading update, but given the cold weather so far this spring there may well be some pressure on full-year profit forecasts (consensus is currently for a bounce to profit before tax of c£790m) today and the body language of management at the results meeting at 9.30am will be interesting to see – Nick Bubb, independent analyst

Poor weather in the UK this year in March plays poor weather in April last year. At this stage last year, B&Q was recording positive like-for-like sales growth and ended the quarter at -11%. With 50% of first quarter sales generally accounted for by April in the UK, there is still a lot to play for. Having massaged expectations down over the last 12 months, strong cash flow should be the focus today. We are buyers on the view that the long term outlook for earnings remains good. Also, at some stage, there might be some help from the UK economy and, in the meantime, self-help opportunities should support profits and therefore the shares - Philip Dorgan, Panure Gordon & Co