Group like-for-like sales increased 0.9 per cent for the year to February 3. Pre-tax profits slumped 11 per cent to£396.6 million, but the retailer said that pre-tax profits had been up 13 per cent in the second half.
Sales at the UK division, which includes B&Q, Screwfix Direct and Trade Depot, rose 2.1 per cent to£4.2 billion. Profit fell 16.8 per cent to£182.6 million. B&Q sales fell 1.7 per cent to£3.9 billion, down 2.9 per cent like-for-like.
Group chief executive Gerry Murphy said: 'The UK home improvement market stabilised during the year and B&Q delivered sales and profit growth in the second half. B&Q's development programme is encouraging and the pace of activity is accelerating in 2007/2008. I remain convinced that these initiatives will make B&Q more attractive to its customers and more valuable for shareholders.'
Sales at the company's French operation grew 9 per cent ahead of the market, but retail profit was lower, reflecting accelerated development and continuing price pressure.
Murphy said the outlook for the group remained challenging, but his long-term view was positive for the home improvement market. He said: 'Ahead of the key Easter trading period, early 2007/2008 trading has been stronger in our major markets, supported by better weather.'
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