Kingfisher’s (KGF) gross profit slid 1.4 per cent in FY2020, but its share price rose as much as 5 per cent on news that sales had recovered in the second quarter of this financial year. Revenue in the quarter grew by more than a fifth as some of the group’s stores reopened in the UK and France. Despite initial closures, the home improvement group was able to maintain sales as it adapted its operating model through click-and-collect and home delivery, driving a fourfold increase in e-commerce sales since mid-March.
Management outlined its new “Powered by Kingfisher” strategy, which will support its distinct retail banners that address specific customer needs. The group has identified e-commerce as a medium-term priority in order to become what chief executive Thierry Garnier described as “a more digital and service-orientated company”.
The group registered £130m worth of impairments and exit costs in Russia, which it attributed in part to underlying store asset write-downs and impairments recorded on classification of the business as held for sale.
Numis forecasts pre-tax profits of between £425m and £430m during the year to January 2021, compared with £103m in 2020.
| KINGFISHER (KGF) | ||||
| ORD PRICE: | 216p | MARKET VALUE: | £ 4.56bn | |
| TOUCH: | 215.8-216p | 12-MONTH HIGH: | 233p | LOW: 101p |
| DIVIDEND YIELD: | 1.5% | PE RATIO: | 540 | |
| NET ASSET VALUE: | 275p* | NET DEBT: | 43%** | |
| Year to 31 Jan | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 10.4 | 512 | 17.8 | 10.1 |
| 2017 | 11.2 | 759 | 27.1 | 10.4 |
| 2018 | 11.7 | 682 | 22.1 | 10.8 |
| 2019 | 11.7 | 300 | 9.1 | 7.49 |
| 2020 | 11.5 | 103 | 0.4 | 3.33 |
| % change | -2 | -66 | -96 | -56 |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes intangible assets of £2.76bn or 131p a share **Includes lease liabilities of £2.5bn | ||||
