THE impact of the consumer downturn on sales of new kitchens and bathrooms contributed to a £25m slump in profits at Hampshire based DIY chain B&Q today.
Retail group Kingfisher - the world's third largest home improvement business and parent of Chandler’s Ford based B&Q - said profits for the UK arm of B&Q fell 19 per cent to £106m after sales declined 6.1 per cent in the year to January 31.
While the company was encouraged by good growth from revamped B&Q stores and new ranges, this was offset by a weak outdoor season and an 8 per cent drop in sales of higher ticket items such as kitchen and bathroom ranges. Sales of core DIY and room makeover products were more resilient after a 3 per cent sales decline.
The profits fall in the UK was countered by Kingfisher’s international arm, enabling the group to report a 3.1 per cent rise in underlying profits to £368m for the year. However, exceptional items meant profits fell 75 per cent to £90m.
One-off items included a £124 million write-down on the balance sheet value of its B&Q China business, which has struggled in the face of a ''very difficult'' housing market.
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