Download full Annual Report and Accounts - Kingfisher

04
Daniel Bernard
Chairman
Chairman’s statement
In my fi rst year as Chairman
I am pleased to report a year of
excellent progress at Kingfi sher.
Adjusted pre-tax profi t* was
up nearly 50% to £547 million,
driven by growth in each of
our geographic regions of the
UK & Ireland, France and
Other International.
The focus on debt reduction continued to deliver results, with fi nancial
net debt down to £250 million from £1 billion the previous year,
underpinned by strong cash generation.
These results were delivered against the backdrop of the worldwide
economic recession, with fears about unemployment and possible
tax increases weighing heavily on consumer confi dence. However,
consumer spending was supported by interest rate cuts, as well as
fi scal measures and other incentives.
I believe Kingfi sher’s key strengths helped us manage our way through
this diffi cult period. We have strong retail brands, all with a value
heritage. We have leading market positions, including the number one
position in fi ve of the countries in which we trade. And our international
spread, with around 60% of sales and profi ts coming from outside the
UK, gives the Group good geographic balance. In addition, Kingfi sher
has what I believe to be a strong, experienced management team, led
by Ian Cheshire.
Our management took decisive action during the year to improve
and grow our business in the face of the downturn. This self-help
programme included a continued focus on our three key priorities of
Management, Capital and Returns. We managed our business tightly,
with a close eye on costs, cash and stock. And we continued to make
good progress with our seven point ‘Delivering Value’ plan. This is
covered in more detail in the ‘Conversation with the executive team’
on pages 6 to 8. However, I would highlight the 80% increase in
profi ts at B&Q in the UK & Ireland and the very resilient performance
in France, where profi ts grew despite a declining market. In addition,
our business in Poland delivered another very strong performance,
Spain moved from loss to profi t and Russia continued to expand whilst
becoming profi table at store level for the fi rst time. In China, a well-executed
turnaround plan meant that losses were signifi cantly reduced.
* before exceptional items, fi nancing fair value remeasurements, amortisation
of acquisition intangibles, related tax items and tax on prior year items.
Kingfi sher plc
Annual Report
and Accounts
2009/10