Good financial year, despite B&Q setback
“With sales growth in each of our three main divisions and further solid
profit growth in our final quarter, we have ended another challenging
year in robust shape”, said CEO Ian Cheshire, who expects that the
group’s full results will meet the £ 799 million (€ 960 million)
profit analysts are expecting. That would mean a 20% rise compared to
2010, which Kingfisher owes mainly to its good results abroad.
In its British home market, Kingfisher witnessed a 2.5% decrease in
turnover, more than the 2% analysts were expecting. The 360 B&Q
stores on the British Isles are the main reason for that decrease,
due to a change in strategy in the kitchen and bathroom department.
Kingfisher’s British DIY chain fares better: turnover on a
like-for-like basis went up 2.2%, celebrating the milestone of the
200th Screwfix store that opened last month.
Reorganisation at the top
Along with its preliminary results, Kingfisher also announced a reorganisation
at the top, with which the group is “trying to expand the
experience of its key senior management”, as an analyst of the
Royal Bank of Scotland stated. Kingfisher is now thought to leave the
current division by regions and reorganise into a division by sector:
- Financial director Kevin O’Byrne would become “Divisonal CEO” van B&Q,
responsible for B&Q’s in the UK, China and Turkey (through a
joint venture) and for the strategic alliance with the German
Hornback chain. - CEO Kingfisher UK & Ireland Euan Sutherland is to take up the post of
COO, while retaining responsibility for Screwfix. - CEO Kingfisher France Philip Tible will be “Divisional CEO” of
Castorama and Brico Dépôt, responsible for the French, Spanish,
Russian and Polish business of the two chains.
This new structure means the elimination of the Kingfisher International
department and its CEO Peter Hogsted. The Dane, former CEO of Ikea
UK, has worked at Kingfisher since 2008. The group announced to be
looking for a new CFO – possibly an elegant way to keep Hogsted on
board.
