Download full Annual Report and Accounts - Kingfisher

Kingfi sher plc
Annual Report
and Accounts
2009/10
Directors’ report
The directors present their report
and audited fi nancial statements
for the fi nancial year ended
30 January 2010.
Principal activities
The principal activity of Kingfi sher plc and its wholly-owned subsidiaries,
joint venture and associates is the delivery of the full range of products
and services of an international home improvement business.
Business review
The business review, which is set out on pages 1 to 28 provides
a comprehensive review of the development, performance and future
prospects of the Group’s operations for the year ended 30 January
2010. The information set out in the business review is incorporated
by reference into this report and is deemed to form part of this report.
Dividends
The directors recommend a fi nal dividend of 3.575p (2008/09: 3.40p)
per ordinary share amounting to £84m (2008/09: £80m) to be paid on
18 June 2010 to members appearing on the Register at the close of
business on 7 May 2010. Together with the interim dividend of 1.925p
(2008/09: 1.925p) per ordinary share, amounting to £45m (2008/09:
£45m), paid on 12 November 2009, the total dividend for the year will
be 5.50p (2008/09: 5.325p) per ordinary share, amounting to £129m
(2008/09: £125m).
Directors
Full biographical details of the current directors are set out on page 29.
Peter Jackson, Hartmut Krämer and Phil Bentley retired as non-executive
directors on 3 June 2009, 23 October 2009 and 17 March 2010 respectively,
and Michael Hepher, who has served on the Board as a non-executive
director for over 12 years will retire at the conclusion of the AGM on
17 June 2010. Anders Dahlvig and Andrew Bonfi eld joined the Board
as non-executive directors on 16 December 2009 and 11 February 2010
respectively and will seek election to the Board at the AGM. In accordance
with the Company’s Articles of Association, Daniel Bernard and
Janis Kong will retire by rotation and will seek re-election to the Board
at the AGM.
Directors’ indemnity arrangements
The Company has provided qualifying third-party deeds of indemnity
for the benefi t of each director and former director who held offi ce
during the 2009/10 fi nancial year. The Company has also purchased
and maintained Directors’ and Offi cers’ liability insurance throughout
2009/10. Neither the indemnities nor the insurance provide cover in the
event that the director concerned is proved to have acted fraudulently.
Directors’ interests
No director had a material interest at any time during the year in any
derivative or fi nancial instrument relating to the Company’s shares.
Details of directors’ remuneration, service contracts and interests
in shares of the Company are set out in the Directors’ remuneration
report on pages 41 to 53.
Risk identifi cation, assessment and management
A summary of the Group’s position regarding risk identifi cation,
assessment and management is contained in the Risks section
on pages 26 to 28.
31
Employees
The commitment of the Group’s employees is vital to ensure that high
standards of customer care and service are maintained throughout the
business. The Company is fully committed to treating its employees and
customers with dignity and respect, and to valuing diversity. It is Group
policy to:
– ensure there is no discrimination in employment on the grounds
of race, gender, age, disability, marital status, sexual orientation
or religious belief;
– implement measures in stores to ensure a level of customer service
for disabled people equivalent to that offered to non-disabled people;
and
– maintain a mechanism which customers and employees can use
to give feedback on our performance and ensure that all customer
comments are analysed, responded to and acted upon.
Across the Group, women accounted for 41% of total employees and
29% of managers in 2009/10. B&Q UK continued its long-established
policy of promoting age diversity, with around a quarter of its employees
aged over 50.
The Group’s statement on employee development is set out in the
People section on page 16 and details of employee involvement through
share participation are contained in the Directors’ remuneration report
on pages 41 to 53.
There are a number of communication channels in place to help people
develop their knowledge of, and enhance their involvement with, the
Group. These channels include engagement surveys, briefi ng groups,
internal magazines and newsletters that report on business performance
and objectives, community involvement and other applicable issues.
Directors and senior management regularly visit stores and discuss
matters of current interest and concern with employees.
Corporate responsibility
Details of the Group’s corporate responsibility policy and operations
are set out on page 18.
Charitable donations
Kingfi sher and its subsidiaries made contributions to charity/community
projects worth an estimated £941,000 during the fi nancial year ended
30 January 2010 – equivalent to 0.2% of pre-tax profi ts. This included
cash donations (£417,000) and gifts-in-kind (£376,000 – retail cost).
Support was also given through the donation of time by employees
(£148,000).
Political donations
The Board annually seeks and obtains shareholders’ approval to enable
the Group to make donations to or incur expenditure in relation to EU
political parties, other political organisations or independent election
candidates under section 366 of the Companies Act 2006. The approval
given in 2009 restricted such expenditure to an aggregate limit of
£75,000 during the period of 12 months following the date of the AGM.