In the fourth quarter to January 31, total group sales grew 11 per cent to£2.3bn, the equivalent to a 0.3 per cent decline on a local currency basis. The figures represent a 5.5 per cent like-for-like fall.
At its UK division, sales dropped 4.2 per cent, or 6.8 per cent on a like-for-like basis. At B&Q, sales declined 5.5 per cent to£825m, a 5.9 per cent like-for-like decline.
Sales of big-ticket items including kitchen and bathroom products improved compared with the third quarter. Increased promotional activity hit gross margins by£17m, but was offset by cost savings.
Screwfix reported total sales growth of 4.2 per cent to£115m.
Sales at its French division grew 2.1 per cent on a local currency basis to£937m, down 2.9 per cent like-for-like. Like-for-like sales at Castorama and Brico Depot dropped 1 per cent and 4.9 per cent respectively.
Sales in Poland jumped 16.2 per cent with like-for-likes up 5.5 per cent, while sales in China slumped 26.6 per cent or 31.2 per cent like-for-like.
Kingfisher’s turnaround plans for China, which has been knocked by the weak housing market, have been finalised and will be outlined at the retailer’s preliminary results on March 26.
Kingfisher said it had achieved its flat debt target for the year, before the €615m sale of the Italian division and excluding the impact of exchange rate movements. Year-end debt is expected to be below£1.1bn, down from£1.6bn in the previous year.
Group chief executive Ian Cheshire said: “We continued to take share in our major markets during Q4 and have managed our cash flow in what was a particularly difficult time for consumers.
“Adopting a vigorous and prudent approach to costs and cash at the start of the year enabled us to meet key financial targets, including our target for net debt, and make real progress with our Delivering Value programme in 2008.”
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