Kingfisher increases 2013 full year dividend by 5% and announces cash returns to shareholders

DividendMax Ltd.

Kingfisher increases 2013 full year dividend by 5% and announces cash returns to shareholders

Kingfisher reports full year adjusted* pre-tax profits up 4.1% to £744 million.

Full year dividend up 5% and

announcing a multi-year capital return programme in 2014/15.

Group  Financial Summary



% Total


% Total Change

% LFL* Change





Constant currency

Constant currency







Retail profit*(2)






Adjusted* pre-tax profit






Adjusted basic EPS






Interim dividend






Final dividend






Full year dividend






Net cash*







*Throughout this release '*' indicates first instance of a term defined or explained in the glossary in Section 5 of this release.

(1) On a 52 week basis*

(2) 2012/13 comparatives restated by £3m in the UK & Ireland division to reflect reclassification of pension administrative expenses from finance costs to retail profit, as per the amended IAS 19

2013/14 Highlights

Good progress in tough environment

o Extremely challenging Q1, remainder of year more encouraging, except for persistent weak economic backdrop in France*

o Reported adjusted PBT up 4.1% and stronger underlying progress

Market share growth in France, UK and Poland

Grown Economic Profit (KEP*) to £74m

Strong free cash flow* generation of £559m after capital expenditure

Exceptional accounting gain of £131m principally relating to the successful resolution of the Kesa demerger French tax case

'Creating the Leader' programme continues to progress, on-going self-help initiatives supporting short-term performance whilst positioning the business for future growth

B&Q UK & Ireland's accelerated evolution now underway, led by strengthened team

2014/15 New Developments

A multi-year programme of additional capital returns to shareholders, starting with around £200m during the financial year 2014/15 

Two new country entries planned. Two Brico Dépôt stores to open in Portugal and four Screwfix outlets to open in Germany with full next day national delivery

o Combined investment impact on 2014/15 profit will be a net charge of around £10m

Disposal agreed on 24 March 2014 of the entire 21.2% stake in Hornbach for approximately £195m following a review of this strategic investment

Intention to look for a strategic partner for B&Q China (to replicate the successful partner approach in Turkey)

Statutory reporting



Reported Change

Profit before taxation 




Profit for the year




Basic EPS




Note: A reconciliation to adjusted measures above is set out in the Financial Review (Section 4).

Kingfisher's Group Chief Executive, Sir Ian Cheshire, said;

"We finish a challenging year in good shape, with our self-help programme meaning we have grown profit and economic return, improved our balance sheet strength whilst also investing in lower prices for our customers and improved convenience. The economic backdrop was generally soft across Europe for much of the year, particularly in France, our most significant market.

"Looking ahead we are well placed to benefit from a pick-up in consumer spending as Europe's economies return to growth. Our prospects remain bright, giving us confidence to invest in the business and actively manage our portfolio, including expanding into new markets, whilst also commencing a programme of returning surplus capital to our shareholders, alongside the healthy annual dividend."

Companies mentioned