Highlights (in constant currencies):
Sales and profit impacted by:
o On-going weak consumer confidence in our three major markets
o Volatility a key feature across H1
Record cold weather in Q1 followed by better weather in Q2 (outdoor products down 10% in Q1, up 9% in Q2)
Retail profit down 29.2% in Q1 and up 10.8% in Q2
'Creating the Leader' programme progressing well
o 2013/14 milestone delivery on track
o On-going self-help initiatives supporting short term performance in challenging markets
o Completed the acquisition of 15 stores in Romania
o Accelerating the UK expansion of Screwfix, announcing 2014 Germany trials
Balance sheet
o £145 million exceptional provision release relating to the successful resolution of the Kesa demerger French tax case
o Moving annual lease adjusted net debt/EBITDAR at 2.3 times, broadly in line with year end
Ian Cheshire, Group Chief Executive, said:
"After a difficult first quarter, in which sales and profits were affected by record bad weather, we were able to capitalise on the better weather in the second quarter particularly in the UK, to grow quarterly profits and so deliver a broadly flat result across the half. However, underlying consumer confidence remains weak in our major markets, so we continue to focus hard on our self-help initiatives to drive growth, margin and cost efficiencies.
"Looking ahead, we remain ready to capitalise on any improvement in conditions or opportunities as they arise, including the potential pick up in the UK housing market. In the meantime, our self-help plan, 'Creating the Leader', continues to progress well, including the acquisition of 15 stores in Romania, our first new country entry in seven years. I am also delighted to have received final resolution of the Kesa demerger French tax case, after nine years. Overall, we remain confident in our future prospects."
