Kingfisher
plc
2024/25 INTERIM CONDENSED
FINANCIAL STATEMENTS (UNAUDITED)
CONSOLIDATED INCOME
STATEMENT
|
|
|
|
|
|
Half
year ended 31 July 2024
|
Half
year ended 31 July 2023
|
£ millions
|
Notes
|
Before
adjusting items
|
Adjusting items (note 5)
|
Total
|
Before
adjusting items
|
Adjusting items (note 5)
|
Total
|
Sales
|
4
|
6,756
|
-
|
6,756
|
6,880
|
-
|
6,880
|
Cost of sales
|
|
(4,276)
|
-
|
(4,276)
|
(4,385)
|
-
|
(4,385)
|
Gross profit
|
|
2,480
|
-
|
2,480
|
2,495
|
-
|
2,495
|
Selling and distribution
expenses
|
|
(1,583)
|
(9)
|
(1,592)
|
(1,605)
|
(21)
|
(1,626)
|
Administrative expenses
|
|
(510)
|
2
|
(508)
|
(511)
|
-
|
(511)
|
Other income
|
|
10
|
-
|
10
|
12
|
2
|
14
|
Other expense
|
|
-
|
(3)
|
(3)
|
-
|
-
|
-
|
Share of post-tax results of joint
ventures and associates
|
|
(13)
|
-
|
(13)
|
(5)
|
-
|
(5)
|
Operating profit
|
4
|
384
|
(10)
|
374
|
386
|
(19)
|
367
|
Finance costs
|
|
(67)
|
-
|
(67)
|
(64)
|
-
|
(64)
|
Finance income
|
|
17
|
-
|
17
|
14
|
-
|
14
|
Net finance costs
|
6
|
(50)
|
-
|
(50)
|
(50)
|
-
|
(50)
|
Profit before taxation
|
|
334
|
(10)
|
324
|
336
|
(19)
|
317
|
Income tax expense
|
7
|
(91)
|
4
|
(87)
|
(87)
|
7
|
(80)
|
Profit for the period
|
|
243
|
(6)
|
237
|
249
|
(12)
|
237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
8
|
|
|
|
|
|
|
Basic
|
|
|
|
12.8p
|
|
|
12.4p
|
Diluted
|
|
|
|
12.6p
|
|
|
12.2p
|
Adjusted basic
|
|
|
|
13.2p
|
|
|
13.0p
|
Adjusted diluted
|
|
|
|
13.0p
|
|
|
12.8p
|
|
|
|
|
|
|
|
|
| |
The proposed interim ordinary
dividend for the period ended 31 July 2024 is 3.80p per share
(2023/24: 3.80p per share).
Kingfisher
plc
2024/25 INTERIM CONDENSED
FINANCIAL STATEMENTS (UNAUDITED)
CONSOLIDATED INCOME
STATEMENT
|
|
Year
ended 31 January 2024
|
£ millions
|
Notes
|
Before
adjusting
items
|
Adjusting
items
(note
5)
|
Total
|
Sales
|
4
|
12,980
|
-
|
12,980
|
Cost of sales
|
|
(8,204)
|
-
|
(8,204)
|
Gross profit
|
|
4,776
|
-
|
4,776
|
Selling and distribution
expenses
|
|
(3,143)
|
(87)
|
(3,230)
|
Administrative expenses
|
|
(982)
|
(8)
|
(990)
|
Other income
|
|
23
|
2
|
25
|
Share of post-tax results of joint
ventures and associates
|
(1)
|
-
|
(1)
|
Operating profit
|
4
|
673
|
(93)
|
580
|
Finance costs
|
|
(133)
|
-
|
(133)
|
Finance income
|
|
28
|
-
|
28
|
Net finance costs
|
6
|
(105)
|
-
|
(105)
|
Profit before taxation
|
|
568
|
(93)
|
475
|
Income tax expense
|
7
|
(153)
|
23
|
(130)
|
Profit for the year
|
|
415
|
(70)
|
345
|
|
|
|
|
|
Earnings per share
|
8
|
|
|
|
Basic
|
|
|
|
18.2p
|
Diluted
|
|
|
|
18.0p
|
Adjusted basic
|
|
|
|
21.9p
|
Adjusted diluted
|
|
|
|
21.6p
|
|
|
|
|
|
Kingfisher
plc
2024/25 INTERIM CONDENSED
FINANCIAL STATEMENTS (UNAUDITED)
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
£ millions
|
Notes
|
Half
year ended
31 July
2024
|
Half
year ended
31 July
2023
|
Year
ended
31
January 2024
|
Profit for the period
|
|
237
|
237
|
345
|
Remeasurements of post-employment
benefits
|
11
|
1
|
(9)
|
(42)
|
Inventory cash flow hedges - fair
value losses
|
|
(6)
|
(40)
|
(32)
|
Tax on items that will not be
reclassified
|
7
|
34
|
14
|
28
|
Total items that will not be reclassified
subsequently to profit or loss
|
|
29
|
(35)
|
(46)
|
Currency translation
differences
|
|
|
|
|
Subsidiaries
|
|
(28)
|
(10)
|
(3)
|
Joint ventures and
associates
|
|
2
|
(4)
|
(1)
|
Transferred to income
statement
|
|
-
|
(2)
|
(2)
|
Inventory cash flow hedges - losses
transferred to income statement
|
|
-
|
9
|
12
|
Tax on items that may be
reclassified
|
|
-
|
-
|
(2)
|
Total items that may be reclassified subsequently to profit
or loss
|
|
(26)
|
(7)
|
4
|
Other comprehensive income/(expense) for the
period
|
|
3
|
(42)
|
(42)
|
Total comprehensive income for the period
|
|
240
|
195
|
303
|
Kingfisher
plc
2024/25 INTERIM CONDENSED
FINANCIAL STATEMENTS (UNAUDITED)
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
|
|
|
|
|
Half
year ended 31 July 2024
|
£ millions
|
Share
capital
(note
13)
|
Share
premium
|
Own
shares held
|
Retained
earnings
|
Capital
redemption
reserve
|
Other
reserves
(note
14)
|
Total
equity
|
|
At
1 February 2024
|
294
|
2,228
|
(31)
|
3,741
|
82
|
290
|
6,604
|
|
Profit for the period
|
-
|
-
|
-
|
237
|
-
|
-
|
237
|
|
Other comprehensive income/(expense)
for the period
|
-
|
-
|
-
|
34
|
-
|
(31)
|
3
|
|
Total comprehensive income/(expense) for the
period
|
-
|
-
|
-
|
271
|
-
|
(31)
|
240
|
|
Inventory cash flow hedges - losses
transferred to inventories
|
-
|
-
|
-
|
-
|
-
|
15
|
15
|
|
Share-based compensation
|
-
|
-
|
-
|
12
|
-
|
-
|
12
|
|
New shares issued under share
schemes
|
-
|
-
|
-
|
1
|
-
|
-
|
1
|
|
Own shares issued under share
schemes
|
-
|
-
|
11
|
(11)
|
-
|
-
|
-
|
|
Purchase of own shares for
cancellation
|
(5)
|
-
|
-
|
(100)
|
5
|
-
|
(100)
|
|
Purchase of own shares for ESOP
trust
|
-
|
-
|
(26)
|
-
|
-
|
-
|
(26)
|
|
Dividends
|
-
|
-
|
-
|
(159)
|
-
|
-
|
(159)
|
|
Tax on equity items
|
-
|
-
|
-
|
-
|
-
|
(3)
|
(3)
|
|
At
31 July 2024
|
289
|
2,228
|
(46)
|
3,755
|
87
|
271
|
6,584
|
|
|
|
|
|
|
|
|
|
|
|
|
Half year ended 31 July 2023
|
|
£ millions
|
Share
capital (note 13)
|
Share
premium
|
Own
shares held
|
Retained
earnings
|
Capital
redemption
reserve
|
Other
reserves
(note
14)
|
Total
equity
|
|
At
1 February 2023
|
305
|
2,228
|
(22)
|
3,796
|
71
|
285
|
6,663
|
|
Profit for the period
|
-
|
-
|
-
|
237
|
-
|
-
|
237
|
|
Other comprehensive expense for the
period
|
-
|
-
|
-
|
(4)
|
-
|
(38)
|
(42)
|
|
Total comprehensive income/(expense) for the
period
|
-
|
-
|
-
|
233
|
-
|
(38)
|
195
|
|
Inventory cash flow hedges - losses
transferred to inventories
|
-
|
-
|
-
|
-
|
-
|
12
|
12
|
|
Share-based compensation
|
-
|
-
|
-
|
12
|
-
|
-
|
12
|
|
New shares issued under share
schemes
|
-
|
-
|
-
|
2
|
-
|
-
|
2
|
|
Own shares issued under share
schemes
|
-
|
-
|
9
|
(9)
|
-
|
-
|
-
|
|
Purchase of own shares for
cancellation
|
(6)
|
-
|
-
|
(103)
|
6
|
-
|
(103)
|
|
Purchase of own shares for ESOP
trust
|
-
|
-
|
(24)
|
-
|
-
|
-
|
(24)
|
|
Dividends
|
-
|
-
|
-
|
(165)
|
-
|
-
|
(165)
|
|
Tax on equity items
|
-
|
-
|
-
|
-
|
-
|
(4)
|
(4)
|
|
At
31 July 2023
|
299
|
2,228
|
(37)
|
3,766
|
77
|
255
|
6,588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Year
ended 31 January 2024
|
£ millions
|
Share
capital (note 13)
|
Share
premium
|
Own
shares held
|
Retained
earnings
|
Capital
redemption
reserve
|
Other
reserves
(note
14)
|
Total
equity
|
At
1 February 2023
|
305
|
2,228
|
(22)
|
3,796
|
71
|
285
|
6,663
|
Profit for the year
|
-
|
-
|
-
|
345
|
-
|
-
|
345
|
Other comprehensive expense for the
year
|
-
|
-
|
-
|
(20)
|
-
|
(22)
|
(42)
|
Total comprehensive income/(expense) for the
year
|
-
|
-
|
-
|
325
|
-
|
(22)
|
303
|
Inventory cash flow hedges - losses
transferred to inventories
|
-
|
-
|
-
|
-
|
-
|
33
|
33
|
Share-based compensation
|
-
|
-
|
-
|
22
|
-
|
-
|
22
|
New shares issued under share
schemes
|
-
|
-
|
-
|
4
|
-
|
-
|
4
|
Own shares issued under share
schemes
|
-
|
-
|
15
|
(15)
|
-
|
-
|
-
|
Purchase of own shares for
cancellation
|
(11)
|
-
|
-
|
(153)
|
11
|
-
|
(153)
|
Purchase of own shares for ESOP
trust
|
-
|
-
|
(24)
|
-
|
-
|
-
|
(24)
|
Dividends
|
-
|
-
|
-
|
(237)
|
-
|
-
|
(237)
|
Tax on equity items
|
-
|
-
|
-
|
(1)
|
-
|
(6)
|
(7)
|
At
31 January 2024
|
294
|
2,228
|
(31)
|
3,741
|
82
|
290
|
6,604
|
Kingfisher
plc
2024/25 INTERIM CONDENSED
FINANCIAL STATEMENTS (UNAUDITED)
CONSOLIDATED BALANCE
SHEET
£ millions
|
Notes
|
At 31
July 2024
|
At 31
July 2023
|
At 31
January 2024
|
Non-current assets
|
|
|
|
|
Goodwill
|
|
2,397
|
2,407
|
2,398
|
Other intangible assets
|
10
|
338
|
372
|
368
|
Property, plant and
equipment
|
10
|
3,171
|
3,168
|
3,206
|
Investment property
|
10
|
30
|
28
|
27
|
Right-of-use assets
|
|
1,871
|
1,934
|
1,881
|
Investments in joint ventures and
associates
|
|
8
|
12
|
19
|
Post-employment benefits
|
11
|
216
|
243
|
212
|
Deferred tax assets
|
|
8
|
19
|
10
|
Other tax authority asset
|
17
|
70
|
67
|
68
|
Other receivables
|
|
15
|
16
|
15
|
|
|
8,124
|
8,266
|
8,204
|
Current assets
|
|
|
|
|
Inventories
|
|
2,979
|
3,132
|
2,914
|
Trade and other
receivables
|
|
385
|
393
|
344
|
Derivative assets
|
12
|
3
|
4
|
2
|
Current tax assets
|
|
54
|
44
|
73
|
Cash and cash equivalents
|
|
485
|
344
|
360
|
Assets held for sale
|
|
-
|
3
|
3
|
|
|
3,906
|
3,920
|
3,696
|
Total assets
|
|
12,030
|
12,186
|
11,900
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
|
(2,653)
|
(2,665)
|
(2,445)
|
Borrowings
|
12
|
(63)
|
(28)
|
(7)
|
Lease liabilities
|
|
(356)
|
(350)
|
(366)
|
Derivative liabilities
|
12
|
(15)
|
(54)
|
(23)
|
Current tax liabilities
|
|
(16)
|
(2)
|
(12)
|
Provisions
|
|
(8)
|
(9)
|
(9)
|
|
|
(3,111)
|
(3,108)
|
(2,862)
|
Non-current liabilities
|
|
|
|
|
Other payables
|
|
(4)
|
(4)
|
(3)
|
Borrowings
|
12
|
(50)
|
(101)
|
(102)
|
Lease liabilities
|
|
(1,968)
|
(2,048)
|
(2,001)
|
Derivative liabilities
|
12
|
(1)
|
(3)
|
(1)
|
Deferred tax liabilities
|
|
(190)
|
(207)
|
(207)
|
Provisions
|
|
(6)
|
(11)
|
(7)
|
Post-employment benefits
|
11
|
(116)
|
(116)
|
(113)
|
|
|
(2,335)
|
(2,490)
|
(2,434)
|
Total liabilities
|
|
(5,446)
|
(5,598)
|
(5,296)
|
Net
assets
|
|
6,584
|
6,588
|
6,604
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Share capital
|
13
|
289
|
299
|
294
|
Share premium
|
|
2,228
|
2,228
|
2,228
|
Own shares held in ESOP
trust
|
|
(46)
|
(37)
|
(31)
|
Retained earnings
|
|
3,755
|
3,766
|
3,741
|
Capital redemption
reserve
|
|
87
|
77
|
82
|
Other reserves
|
14
|
271
|
255
|
290
|
Total equity
|
|
6,584
|
6,588
|
6,604
|
|
|
|
|
|
|
| |
The interim financial report was
approved by the Board of Directors on 16 September 2024 and signed
on its behalf by:
Thierry
Garnier, Chief Executive
Officer
|
Bernard
Bot, Chief Financial
Officer
|
Kingfisher
plc
2024/25 INTERIM CONDENSED
FINANCIAL STATEMENTS (UNAUDITED)
CONSOLIDATED CASH FLOW
STATEMENT
£ millions
|
Notes
|
Half
year ended
31 July
2024
|
Half
year ended
31 July
2023
|
Year
ended
31
January 2024
|
Operating activities
|
|
|
|
|
Cash generated by
operations
|
15
|
858
|
796
|
1,438
|
Income tax paid
|
|
(48)
|
(68)
|
(117)
|
Net
cash flows from operating activities
|
|
810
|
728
|
1,321
|
|
|
|
|
|
Investing activities
|
|
|
|
|
Purchase of property, plant and
equipment and intangible assets
|
|
(153)
|
(164)
|
(363)
|
Disposal of property, plant and
equipment, assets held for sale and intangible assets
|
|
-
|
-
|
2
|
Purchase of businesses
|
|
-
|
(3)
|
(3)
|
Disposal of subsidiaries and
associates, net of cash disposed
|
|
(3)
|
9
|
9
|
Interest received
|
|
12
|
7
|
16
|
Interest element of lease rental
receipts
|
|
-
|
-
|
1
|
Principal element of lease rental
receipts
|
|
2
|
1
|
3
|
Advance payments on right-of-use
assets
|
|
(2)
|
(1)
|
(4)
|
Net
cash flows used in investing activities
|
|
(144)
|
(151)
|
(339)
|
|
|
|
|
|
Financing activities
|
|
|
|
|
Interest paid
|
|
(4)
|
(2)
|
(7)
|
Interest element of lease rental
payments
|
|
(62)
|
(62)
|
(126)
|
Principal element of lease rental
payments
|
|
(198)
|
(176)
|
(348)
|
Arrangement fees paid
|
|
(2)
|
-
|
-
|
New shares issued under share
schemes
|
|
1
|
2
|
4
|
Purchase of own shares for
cancellation
|
|
(92)
|
(99)
|
(160)
|
Purchase of own shares for ESOP
trust
|
|
(26)
|
(24)
|
(24)
|
Ordinary dividends paid to equity
shareholders of the Company
|
9
|
(159)
|
(165)
|
(237)
|
Net
cash flows used in financing activities
|
|
(542)
|
(526)
|
(898)
|
|
|
|
|
|
Net
increase in cash and cash equivalents and bank
overdrafts
|
|
124
|
51
|
84
|
Cash and cash equivalents and bank
overdrafts at beginning of period
|
|
353
|
270
|
270
|
Exchange differences
|
|
(5)
|
(4)
|
(1)
|
Cash and cash equivalents and bank overdrafts at end of
period
|
|
472
|
317
|
353
|
Kingfisher
plc
2024/25 INTERIM CONDENSED
FINANCIAL STATEMENTS (UNAUDITED)
NOTES TO THE CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
1. General
information
Kingfisher plc ('the Company'), its
subsidiaries, joint ventures and associates (together 'the Group')
supply home improvement products and services through a network of
retail stores and other channels, located mainly in the United
Kingdom and continental Europe.
The Company is incorporated in
England and Wales, United Kingdom, and is listed on the London
Stock Exchange. The address of its registered office is One
Paddington Square, London, W2 1GG.
The interim financial report does
not comprise statutory accounts within the meaning of section 434
of the Companies Act 2006. Audited statutory accounts for the year
ended 31 January 2024 were approved by the Board of Directors on 24
March 2024 and delivered to the Registrar of Companies. The report
of the auditors on those accounts was unqualified, did not contain
an emphasis of matter paragraph and did not contain any statement
under sections 498(2) or (3) of the Companies Act 2006. The interim
financial report has been reviewed, not audited, and was approved
by the Board of Directors on 16 September 2024.
2. Basis of
preparation
The interim financial report for the
six months ended 31 July 2024 ('the half year') has been prepared
in accordance with the Disclosure and Transparency Rules of the
Financial Conduct Authority and with IAS 34, 'Interim Financial
Reporting', as adopted by the United Kingdom. It should be read in
conjunction with the annual financial statements for the year ended
31 January 2024, which have been prepared in accordance with
international accounting standards in conformity with the
requirements of the Companies Act 2006 and International Financial
Reporting Standards (IFRS) as issued by the IASB. The consolidated
income statement and related notes represent results for continuing
operations, there being no discontinued operations in the periods
presented. Where comparatives are given, '2023/24' refers to the
six months ended 31 July 2023.
Going
concern
Based on the Group's liquidity
position and cash flow projections, including a forward-looking
remote downside scenario, the Directors have a reasonable
expectation that the Company and the Group have adequate resources
to continue in operational existence for the foreseeable future, a
period not less than 12 months from the date of this report, and
they continue to adopt the going concern basis of accounting in
preparing the condensed consolidated financial statements for the
period ended 31 July 2024.
Considering whether the Group's
condensed consolidated financial statements can be prepared on a
going concern basis, the Directors have reviewed the Group's
business activities together with factors likely to affect its
performance, financial position and access to liquidity (including
consideration of financial covenants). As of 31 July 2024, the
Group had access to over £1.1bn in total liquidity, including cash
and cash equivalents of £472m (net of bank overdrafts) and access
to a £650m revolving credit facility (RCF), due to expire in May
2027.
In forming their outlook on the
future financial performance, the Directors considered the risk of
higher business volatility and the potential negative impact of the
general economic environment on household and trade
spend.
The Directors' review also included
consideration of a remote scenario that models the impact of a
significant demand or supply shock preventing the Group from
realising a large part of its sales over the period of a month
followed by subdued demand for the following 11 months. The total
loss of sales in this scenario is c.£1.4bn (10% over the impacted
period). The scenario assumes the impact of lost sales is partially
offset by a limited set of mitigating actions on variable and
discretionary costs, capital expenditure and the suspension of
capital returns to shareholders. Even under this remote scenario,
which requires drawing on the RCF for a few months, the Group
retains sufficient liquidity and remains in compliance with
financial covenants on credit facilities. Should a more extreme
scenario occur than currently forecast by the Directors under this
remote scenario, the Group would need to implement additional
operational or financial measures.
New and amended accounting
standards
New standards, amendments and
interpretations are in issue and effective for the Group's
financial year ended 31 January
2025, but they do not have a
material impact on the interim financial report.
Principal rates of exchange
against Sterling
|
Half
year ended 31 July 2024
|
Half
year ended 31 July 2023
|
Year
ended 31 January 2024
|
|
Average
Rate
|
Period
end
rate
|
Average
rate
|
Period
end
rate
|
Average
rate
|
Year
end
rate
|
Euro
|
1.17
|
1.19
|
1.15
|
1.17
|
1.15
|
1.17
|
US Dollar
|
1.27
|
1.28
|
1.24
|
1.29
|
1.25
|
1.27
|
Polish Zloty
|
5.05
|
5.09
|
5.25
|
5.14
|
5.20
|
5.08
|
Romanian Leu
|
5.84
|
5.91
|
5.66
|
5.77
|
5.71
|
5.83
|
Turkish Lira*
|
42.54
|
42.54
|
34.61
|
34.61
|
38.64
|
38.64
|
* Turkish Lira average exchange rates represent the closing
rates for the periods presented due to the application of
hyperinflation accounting in Turkey.
Risks and
uncertainties
The principal risks and
uncertainties to which the Group is exposed are set out on pages
59-64 of the Kingfisher plc Annual Report and Accounts for the year
ended 31 January 2024. These have been reviewed as part of the
Group's half year procedures and are listed in the Financial Review
in part 1 of this announcement.
Use of non-GAAP
measures
In the reporting of financial
information, the Group uses certain measures that are not required
under IFRS, the generally accepted
accounting principles ('GAAP') under
which the Group reports. The Group believes that retail profit,
adjusted pre-tax profit, adjusted effective tax rate, and adjusted
earnings per share provide additional useful information on
performance and trends to shareholders. These and other non-GAAP
measures (also known as 'Alternative Performance Measures'), such
as net debt, are used by the Group for internal performance
analysis and incentive compensation arrangements for employees. The
terms 'retail profit', 'adjusting items', 'adjusted', 'adjusted
effective tax rate', 'net cashflow' and 'net debt' are not defined
terms under IFRS and may therefore not be comparable with similarly
titled measures reported by other companies. They are not intended
to be a substitute for, or superior to, GAAP measures.
Retail profit is defined as
continuing operating profit before central costs, the Group's share
of interest and tax of joint ventures and associates and adjusting
items. Central costs principally comprise the costs of the Group's
head office before adjusting items.
Adjusting items, which are presented
separately within their relevant income statement category, include
items which by virtue of their size and/or nature, do not reflect
the Group's ongoing trading performance. Adjusting items may
include, but are not limited to:
· non-trading items included in operating profit such as
profits and losses on the disposal, closure, exit or impairment of
subsidiaries, joint ventures, associates and investments which do
not form part of the Group's ongoing trading activities;
· the
costs of significant restructuring and incremental acquisition
integration costs;
· profits and losses on the disposal/exit of properties,
impairments of goodwill and significant impairments (or impairment
reversals) of other non-current assets;
· prior year tax items (including the impact of changes in tax
rates on deferred tax), significant one-off tax settlements and
provision charges/releases and the tax effects of other adjusting
items;
· financing fair value remeasurements i.e. changes in the fair
value of financing derivatives, excluding interest accruals, offset
by fair value adjustments to the carrying amount of borrowings and
other hedged items under fair value (or non-designated) hedge
relationships. Financing derivatives are those that relate to
hedged items of a financing nature.
The term 'adjusted' refers to the
relevant measure being reported for continuing operations excluding
adjusting items.
The adjusted effective tax rate is
calculated as continuing income tax expense excluding prior year
tax items (including the impact of changes in tax rates on deferred
tax), significant one-off tax settlements and provision
charges/releases and the tax effects of other adjusting items,
divided by continuing profit before taxation excluding adjusting
items. Prior year tax items represent income statement tax relating
to underlying items originally arising in prior years, including
the impact of changes in tax rates on deferred tax. The exclusion
of items relating to prior years, and those not in the ordinary
course of business, helps provide an indication of the Group's
ongoing rate of tax.
Net debt comprises lease
liabilities, borrowings and financing derivatives (excluding
accrued interest) less cash and cash equivalents and short-term
deposits, including such balances classified as held for
sale.
Refer to the Financial Review for
definitions of all of the Group's Alternative Performance Measures,
including further information on why they are used and details of
where reconciliations to statutory measures can be found where
applicable.
3. Accounting
policies
The accounting policies adopted are
consistent with those of the annual financial statements for the
year ended 31 January 2024, as described in note 2 of those
financial statements, except where set out below. The critical
accounting estimates and judgements are set out in note 3 of the
annual financial statements for the year ended 31 January 2024 and
remain unchanged.
Taxes on income for interim periods
are accrued using the best estimate of the effective tax rate that
would be applicable to expected total annual earnings.
4. Segmental
analysis
Income statement
|
Half
year ended 31 July 2024
|
|
|
|
|
|
|
|
£ millions
|
UK &
Ireland
|
France
|
Poland
|
Other
|
Other
International
|
Total
|
Sales
|
3,376
|
2,099
|
941
|
340
|
1,281
|
6,756
|
Retail profit/(loss)
|
325
|
69
|
50
|
(24)
|
26
|
420
|
Central costs
|
|
|
|
|
|
(29)
|
Share of interest and tax of joint
ventures and associates
|
|
|
|
|
|
(7)
|
Adjusting items
|
|
|
|
|
|
(10)
|
Operating profit
|
|
|
|
|
|
374
|
Net finance costs
|
|
|
|
|
|
(50)
|
Profit before taxation
|
|
|
|
|
|
324
|
|
|
|
|
|
|
|
|
| |
|
Half
year ended 31 July 2023
|
|
|
|
|
|
|
|
£ millions
|
UK &
Ireland
|
France
|
Poland
|
Other
|
Other
International
|
Total
|
Sales
|
3,346
|
2,311
|
880
|
343
|
1,223
|
6,880
|
Retail profit/(loss)
|
306
|
104
|
35
|
(12)
|
23
|
433
|
Central costs
|
|
|
|
|
|
(36)
|
Share of interest and tax of joint
ventures and associates
|
|
|
|
|
|
(11)
|
Adjusting items
|
|
|
|
|
|
(19)
|
Operating profit
|
|
|
|
|
|
367
|
Net finance costs
|
|
|
|
|
|
(50)
|
Profit before taxation
|
|
|
|
|
|
317
|
|
|
|
|
|
|
|
|
| |
|
Year
ended 31 January 2024
|
|
|
|
|
|
|
|
£ millions
|
UK &
Ireland
|
France
|
Poland
|
Other
|
Other
International
|
Total
|
Sales
|
6,387
|
4,246
|
1,694
|
653
|
2,347
|
12,980
|
Retail profit/(loss)
|
555
|
139
|
82
|
(27)
|
55
|
749
|
Central costs
|
|
|
|
|
|
(60)
|
Share of interest and tax of joint
ventures and associates
|
|
|
|
|
|
(16)
|
Adjusting items
|
|
|
|
|
|
(93)
|
Operating profit
|
|
|
|
|
|
580
|
Net finance costs
|
|
|
|
|
|
(105)
|
Profit before taxation
|
|
|
|
|
|
475
|
|
|
|
|
|
|
|
|
| |
Balance sheet
|
At 31
July 2024
|
|
|
|
|
|
|
|
£ millions
|
UK &
Ireland
|
France
|
Poland
|
Other
|
Other
International
|
Total
|
Segment assets
|
2,915
|
1,688
|
1,123
|
321
|
1,444
|
6,047
|
Central assets
|
|
|
|
|
|
92
|
Goodwill
|
|
|
|
|
|
2,397
|
Net debt
|
|
|
|
|
|
(1,952)
|
Net
assets
|
|
|
|
|
|
6,584
|
|
|
|
|
|
|
|
|
| |
|
At 31
July 2023
|
|
|
|
|
|
|
|
£ millions
|
UK &
Ireland
|
France
|
Poland
|
Other
|
Other
International
|
Total
|
Segment assets
|
2,974
|
1,784
|
1,186
|
352
|
1,538
|
6,296
|
Central assets
|
|
|
|
|
|
66
|
Goodwill
|
|
|
|
|
|
2,407
|
Net debt
|
|
|
|
|
|
(2,181)
|
Net
assets
|
|
|
|
|
|
6,588
|
|
|
|
|
|
|
|
|
| |
|
At 31
January 2024
|
|
|
|
|
|
|
|
£ millions
|
UK &
Ireland
|
France
|
Poland
|
Other
|
Other
International
|
Total
|
Segment assets
|
2,931
|
1,753
|
1,195
|
360
|
1,555
|
6,239
|
Central assets
|
|
|
|
|
|
83
|
Goodwill
|
|
|
|
|
|
2,398
|
Net debt
|
|
|
|
|
|
(2,116)
|
Net
assets
|
|
|
|
|
|
6,604
|
|
|
|
|
|
|
|
|
| |
The operating segments disclosed
above are based on the information reported internally to the Board
of Directors and Group Executive, representing the geographical
areas in which the Group operates. The Group only has one
reportable business segment, being the supply of home improvement
products and services. The majority of the sales in each
geographical area are derived from in-store and online sales of
products.
The 'Other International' segment
consists of Poland, Iberia, Romania, the joint venture Koçtaş in
Turkey, NeedHelp, Screwfix International and results from franchise
agreements. Poland has been shown separately due to its
significance. On 18 July 2024, we completed a divestment of our
c.80% equity interest in NeedHelp.
Central assets comprise unallocated
head office and other central items, principally relating to
central tax assets, partially offset by central creditors and
accruals including insurance and payroll.
The Group's sales, although
generally not highly seasonal on a half yearly basis, do increase
over the Easter period and during the summer months leading to
slightly higher sales usually being recognised in the first half of
the year. However, due to the continued uncertainty around the
current macro-economic environment, the phasing of sales is less
predictable.
5. Adjusting
items
|
|
|
|
£ millions
|
Half
year ended
31 July
2024
|
Half
year ended
31 July
2023
|
Year
ended
31
January 2024
|
Included within selling and distribution
expenses
|
|
|
|
Net store asset impairment
losses
|
(6)
|
(14)
|
(76)
|
Operating model
restructuring
|
(3)
|
(7)
|
(11)
|
|
(9)
|
(21)
|
(87)
|
Included within administrative expenses
|
|
|
|
NeedHelp goodwill
impairment
|
-
|
-
|
(8)
|
UK guaranteed minimum pension
credit
|
2
|
-
|
-
|
|
2
|
-
|
(8)
|
Included within other income/expenses
|
|
|
|
Loss on disposal of
NeedHelp
|
(3)
|
-
|
-
|
Profit on disposal of Crealfi
associate investment
|
-
|
2
|
2
|
|
(3)
|
2
|
2
|
Adjusting items before tax
|
(10)
|
(19)
|
(93)
|
Prior year and other adjusting tax
items
|
4
|
7
|
23
|
Adjusting items
|
(6)
|
(12)
|
(70)
|
In consideration of H1 2024/25
performance to date in France, we have revised future projections
for a number of stores. This has resulted in the recognition of £6m
of net store impairment charges in the period.
During the prior year, the Group
commenced formal consultation with employee representatives
regarding the Group's Technology operating model restructuring
programme. Operating model restructuring costs of £3m have been
recorded in the period relating to this programme. The programme is
expected to be completed in the second half of the year at a total
cost of c.£15m, in line with previous expectations.
During the period, we have updated
the methodology under which the liability relating to guaranteed
minimum pension equalisation is calculated, to reflect the
methodology chosen by the Trustees, which has resulted in a £2m
credit.
During the period, the Group
completed the disposal of its 80% interest in NeedHelp for nil
proceeds, resulting in a loss on disposal of £3m.
Prior year and other adjusting tax
items relate principally to deferred tax credits recorded in
respect of the impairment and restructuring expenses noted above,
movements in prior year provisions to reflect a reassessment of
expected outcomes, and refunds from tax authorities.
Refer to note 5 of the 2023/24
interim accounts for further details on adjusting items for the
half year ended 31 July 2023, and to note 6 of the 2023/24 annual
accounts for further details on adjusting items for the year ended
31 January 2024.
6. Net
finance costs
£ millions
|
Half
year ended 31 July 2024
|
Half
year ended 31 July 2023
|
Year
ended
31
January 2024
|
Fixed term debt
|
(4)
|
(2)
|
(7)
|
Lease liabilities
|
(62)
|
(62)
|
(126)
|
Other interest expense
|
(1)
|
-
|
-
|
Finance costs
|
(67)
|
(64)
|
(133)
|
|
|
|
|
Cash and cash equivalents and
short-term deposits
|
12
|
7
|
16
|
Net interest income on defined
benefit pension schemes
|
3
|
4
|
7
|
Finance lease income
|
-
|
-
|
1
|
Other interest income
|
2
|
3
|
4
|
Finance income
|
17
|
14
|
28
|
|
|
|
|
Net
finance costs
|
(50)
|
(50)
|
(105)
|
|
|
|
| |
Interest on fixed term debt includes
amortisation of arrangement fees on borrowing facilities of £1m
(2023/24: £nil). Amortisation of arrangement fees on borrowing
facilities for the year ended 31 January 2024 was £nil.
7. Income tax
expense
£ millions
|
Half
year ended
31 July 2024
|
Half
year ended
31 July
2023
|
Year
ended
31 January 2024
|
UK
corporation tax
|
|
|
|
Current tax on profits for the
period
|
(52)
|
(46)
|
(73)
|
Adjustments in respect of prior
years
|
-
|
1
|
2
|
|
(52)
|
(45)
|
(71)
|
Overseas tax
|
|
|
|
Current tax on profits for the
period
|
(20)
|
(24)
|
(37)
|
Adjustments in respect of prior
years
|
3
|
2
|
8
|
|
(17)
|
(22)
|
(29)
|
Current tax
|
(69)
|
(67)
|
(100)
|
Deferred tax
|
|
|
|
Current period
|
(17)
|
(13)
|
(25)
|
Adjustments in respect of prior
years
|
(1)
|
-
|
(4)
|
Adjustments in respect of changes in
tax rates
|
-
|
-
|
(1)
|
|
(18)
|
(13)
|
(30)
|
|
|
|
|
Income tax expense
|
(87)
|
(80)
|
(130)
|
|
|
|
|
The adjusted effective tax rate on
profit before adjusting items is 27% (2023/24: 26%), representing
the best estimate of the effective rate for the full financial
year. The adjusted effective tax rate on the same basis for the
year ended 31 January 2024 was 27%. The adjusted effective tax rate
calculation is set out in the Financial Review in part 1 of this
announcement.
An accounting surplus is recognised
for the UK defined benefit pension scheme - refer to note 11. The
surplus has been recognised on the basis that the future economic
benefits are unconditionally available to the Group, which is
assumed to be via a refund assuming the full settlement of plan
liabilities in the event of a plan wind-up. On 22 November 2023,
the UK government announced that the authorised surplus payments
charge would be reduced from 35% to 25% from 6 April 2024.
Following the enactment of this legislation on 11 March 2024, the
deferred tax liability has been reduced by £32m with a
corresponding credit to other comprehensive income.
8. Earnings
per share
Pence
|
Half
year ended
31 July
2024
|
Half year ended 31 July 2023
|
Year
ended
31
January 2024
|
Basic earnings per share
|
12.8
|
12.4
|
18.2
|
Effect of dilutive share
options
|
(0.2)
|
(0.2)
|
(0.2)
|
Diluted earnings per share
|
12.6
|
12.2
|
18.0
|
|
|
|
|
Basic earnings per share
|
12.8
|
12.4
|
18.2
|
Adjusting items before
tax
|
0.5
|
1.0
|
4.9
|
Prior year and other adjusting tax
items
|
(0.1)
|
(0.4)
|
(1.2)
|
Adjusted basic earnings per share
|
13.2
|
13.0
|
21.9
|
|
|
|
|
Diluted earnings per share
|
12.6
|
12.2
|
18.0
|
Adjusting items before
tax
|
0.5
|
1.0
|
4.8
|
Prior year and other adjusting tax
items
|
(0.1)
|
(0.4)
|
(1.2)
|
Adjusted diluted earnings per share
|
13.0
|
12.8
|
21.6
|
|
|
|
|
The calculation of basic and diluted
earnings per share is based on the profit for the period
attributable to equity shareholders of the Company. A
reconciliation of statutory earnings to adjusted earnings is set
out below:
|
|
|
|
£ millions
|
Half
year ended 31 July 2024
|
Half
year ended 31 July 2023
|
Year
ended
31
January 2024
|
Earnings
|
237
|
237
|
345
|
Adjusting items before
tax
|
10
|
19
|
93
|
Prior year and other adjusting tax
items
|
(4)
|
(7)
|
(23)
|
Adjusted earnings
|
243
|
249
|
415
|
|
|
|
|
|
|
|
|
| |
The weighted average number of
shares in issue during the period, excluding those held in the
Employee Share Ownership Plan Trust ('ESOP trust'), is set out
below:
|
|
|
|
Weighted average number of shares
(millions)
|
Half
year ended
31 July
2024
|
Half
year ended 31 July 2023
|
Year
ended
31
January 2024
|
Basic
|
1,850
|
1,918
|
1,898
|
Diluted
|
1,878
|
1,943
|
1,921
|
|
|
|
|
|
|
|
|
| |
9.
Dividends
|
Half
year ended
|
Half
year ended
|
Year
ended
|
£ millions
|
31 July
2024
|
31 July
2023
|
31
January 2024
|
Dividends to equity shareholders of the
Company
|
|
|
|
Ordinary final dividend for the
year ended 31 January 2024 of 8.60p per share
|
159
|
-
|
-
|
Ordinary interim dividend for the
year ended 31 January 2024 of 3.80p per share
|
-
|
-
|
72
|
Ordinary final dividend for the
year ended 31 January 2023 of 8.60p per share
|
-
|
165
|
165
|
|
159
|
165
|
237
|
The proposed interim ordinary
dividend for the period ended 31 July 2024 is 3.80p per share
(2023/24: 3.80p per share).
10. Property, plant
and equipment, investment property and other intangible
assets
Additions to the cost of property,
plant and equipment, investment property and other intangible
assets are £126m (2023/24: £152m) and for the year ended 31 January
2024 were £371m. Disposals in net book value of property, plant and
equipment, investment property, property assets held for sale and
other intangible assets are £nil (2023/24:
nil) and for the year ended 31 January 2024 were £2m.
Capital commitments contracted but
not provided for at the end of the period are £49m (2023/24: £50m)
and at 31 January 2024 were £31m.
11. Post-employment
benefits
|
Half
year ended
|
Half
year ended
|
Year
ended
|
£ millions
|
31 July
2024
|
31 July
2023
|
31
January 2024
|
Net
surplus in schemes at beginning of period
|
99
|
137
|
137
|
Current service cost
|
(6)
|
(7)
|
(11)
|
Past service credit
|
2
|
-
|
3
|
Administration costs
|
(2)
|
(2)
|
(4)
|
Net interest income
|
3
|
4
|
7
|
Net remeasurement
gains/(losses)
|
1
|
(9)
|
(42)
|
Contributions paid by
employer
|
2
|
-
|
5
|
Exchange differences
|
1
|
4
|
4
|
Net
surplus in schemes at end of period
|
100
|
127
|
99
|
UK
|
216
|
243
|
212
|
Overseas
|
(116)
|
(116)
|
(113)
|
Net
surplus in schemes at end of period
|
100
|
127
|
99
|
Present value of defined benefit
obligations
|
(1,944)
|
(1,916)
|
(1,959)
|
Fair value of scheme
assets
|
2,044
|
2,043
|
2,058
|
Net
surplus in schemes at end of period
|
100
|
127
|
99
|
The assumptions used in calculating
the costs and obligations of the Group's defined benefit pension
schemes are set by the Directors after consultation with
independent professionally qualified actuaries. The assumptions are
based on the conditions at the time and changes in these
assumptions can lead to significant movements in the estimated
obligations, as illustrated in the sensitivity analysis provided in
note 28 of the annual financial statements for the year ended 31
January 2024.
A full actuarial valuation of the
scheme is carried out every three years by an independent actuary
for the Trustee and the last full valuation was carried out as at
31 March 2022. Following this valuation and in accordance with the
scheme's Statement of Funding Principles, The Trustee and
Kingfisher agreed to cease annual employer contributions during the
period from August 2022 to July 2025. This agreement was reached
with reference to a funding objective that targets a longer-term,
low risk funding position in excess of the minimum statutory
funding requirements. This longer-term objective is based on the
principles of the scheme reaching a point where it can provide
benefits to members with a high level of security, thereby limiting
its reliance on the employer for future support. The Company
monitors the scheme funding level on a regular basis and will
reassess with the scheme Trustee the appropriate level of
contributions at future valuations.
A key assumption in valuing the
pension obligation is the discount rate. Accounting standards
require this to be set based on market yields on high-quality
corporate bonds at the balance sheet date. The UK scheme discount
rate is derived using a single equivalent discount rate approach,
based on the yields available on a portfolio of high-quality
Sterling corporate bonds with the same duration as that of the
scheme liabilities.
The principal financial assumptions
for the UK scheme, being the Group's principal defined benefit
scheme, are set out below:
|
At
|
At
|
At
|
Annual % rate
|
31 July
2024
|
31 July
2023
|
31
January 2024
|
Discount rate
|
5.00
|
5.15
|
4.85
|
Rate of pension increases
|
3.05
|
3.05
|
2.95
|
On 25 July 2024, in the case Virgin
Media v NTL Pension Trustees II Limited (and others), the Court of
Appeal upheld the High Court's 2023 decision which confirmed that
certain rules of a contracted-out DB scheme cannot be altered
without the statutory actuarial confirmation having been obtained
and that non-compliant alterations are void. The pension trustees
have commenced their assessment as to whether the ruling has any
implications on the UK defined benefit scheme.
12. Financial
instruments
The Group holds the following
derivative financial instruments at fair value:
|
At
|
At
|
At
|
|
|
£ millions
|
31 July
2024
|
31 July
2023
|
31
January 2024
|
|
|
Foreign exchange
contracts
|
3
|
4
|
2
|
|
|
Derivative assets
|
3
|
4
|
2
|
|
|
|
At
|
At
|
At
|
|
|
£ millions
|
31 July
2024
|
31 July
2023
|
31
January 2024
|
|
|
Foreign exchange
contracts
|
(16)
|
(57)
|
(24)
|
|
|
Derivative liabilities
|
(16)
|
(57)
|
(24)
|
|
|
The fair values are calculated by
discounting future cash flows arising from the instruments and
adjusted for credit risk. These fair value measurements are all
made using observable market rates of interest, foreign exchange
and credit risk. All the derivatives held by the Group at fair
value are considered to have fair values determined by level 2
inputs as defined by the fair value hierarchy of IFRS 13, 'Fair
value measurement', representing significant observable inputs
other than quoted prices in active markets for identical assets or
liabilities. There are no non-recurring fair value measurements nor
have there been any transfers of assets or liabilities between
levels of the fair value hierarchy.
Except as detailed in the following
table of borrowings, the carrying amounts of financial instruments
(excluding lease liabilities) recorded at amortised cost in the
financial statements are approximately equal to their fair values.
Where available, market values have been used to determine the fair
values of borrowings. Where market values are not available or are
not reliable, fair values have been calculated by discounting cash
flows at prevailing interest and foreign exchange rates. This has
resulted in level 2 inputs for borrowings as defined by the IFRS 13
fair value hierarchy.
|
|
|
Carrying
amount
|
|
|
£ millions
|
At
31 July
2024
|
At
31 July
2023
|
At
31
January 2024
|
|
|
Bank overdrafts
|
13
|
27
|
7
|
|
|
Bank loans
|
-
|
3
|
3
|
|
|
Fixed term debt
|
100
|
99
|
99
|
|
|
Borrowings
|
113
|
129
|
109
|
|
|
|
|
|
Fair
value
|
|
|
£ millions
|
At
31 July
2024
|
At
31
July 2023
|
At
31
January 2024
|
|
|
Bank overdrafts
|
13
|
27
|
7
|
|
|
Bank loans
|
-
|
4
|
3
|
|
|
Fixed term debt
|
107
|
107
|
101
|
|
|
Borrowings
|
120
|
138
|
111
|
|
|
Cash and borrowings balances at 31 July 2024, 31 July 2023 and 31
January 2024 reflect the grossing up of cash and overdraft balances
subject to the Group's cash pooling arrangements to ensure the
Group's presentation of these balances is in line with the
requirements for offsetting in accordance with IAS 32 - Financial
Instruments: Presentation.
Fixed term debt comprises a £50m
term loan maturing in June 2025 and a £50m term loan maturing in
January 2026.
As at 31 July 2024, the Group had an
undrawn revolving credit facility (RCF) of £650m, due to expire in
May 2027. This replaced the £550m facility (of which £46m was due
to expire in May 2025 & £504m in May 2026) following a
refinancing in May 2024.
13. Share
capital
|
Number
of
ordinary
shares
|
Ordinary
share
capital
|
|
millions
|
£
millions
|
Allotted, called up and fully
paid:
|
|
|
At 1 February 2024
|
1,875
|
294
|
New shares issued under share
schemes
|
1
|
-
|
Purchase of own shares for
cancellation
|
(36)
|
(5)
|
At
31 July 2024
|
1,840
|
289
|
|
|
|
At 1 February 2023
|
1,940
|
305
|
New shares issued under share
schemes
|
2
|
-
|
Purchase of own shares for
cancellation
|
(41)
|
(6)
|
At 31 July 2023
|
1,901
|
299
|
|
|
|
At 1 February 2023
|
1,940
|
305
|
New shares issued under share
schemes
|
2
|
-
|
Purchase of own shares for
cancellation
|
(67)
|
(11)
|
At 31 January 2024
|
1,875
|
294
|
Ordinary shares have a par value of
155/7 pence per share and carry
full voting, dividend and capital distribution rights.
During the period the Group
purchased 36 million (2023/24: 41 million) of the Company's own
shares for cancellation at a cost of £92m (2023/24: £99m) as part
of its capital returns programme. For the year ended 31 January
2024, the Group purchased 67 million of the Company's own shares
for cancellation at a cost of £160m.
14. Other
reserves
|
Half
year ended 31 July 2024
|
£ millions
|
Translation reserve
|
Cash
flow
hedge
reserve
|
Other
|
Total
|
At
1 February 2024
|
144
|
(13)
|
159
|
290
|
Inventory cash flow hedges - fair
value losses
|
-
|
(6)
|
-
|
(6)
|
Tax on items that will not be
reclassified subsequently to profit or loss
|
-
|
1
|
-
|
1
|
Currency translation
differences
Subsidiaries
|
|
-
|
-
|
(28)
|
(28)
|
Joint ventures and
associates
|
2
|
-
|
-
|
2
|
Other comprehensive expense for the period
|
(26)
|
(5)
|
-
|
(31)
|
Inventory cash flow hedges - losses
transferred to inventories
|
-
|
15
|
-
|
15
|
Tax on equity items
|
-
|
(3)
|
-
|
(3)
|
At
31 July 2024
|
118
|
(6)
|
159
|
271
|
|
|
|
|
|
|
|
|
Half
year ended 31 July 2023
|
£ millions
|
Translation reserve
|
Cash
flow
hedge
reserve
|
Other
|
Total
|
At
1 February 2023
|
150
|
(24)
|
159
|
285
|
Inventory cash flow hedges - fair
value losses
|
-
|
(40)
|
-
|
(40)
|
Tax on items that will not be
reclassified subsequently to profit or loss
|
-
|
9
|
-
|
9
|
Currency translation
differences
Subsidiaries
|
(10)
|
-
|
-
|
(10)
|
Joint ventures and
associates
|
(4)
|
-
|
-
|
(4)
|
Transferred to income
statement
|
(2)
|
-
|
-
|
(2)
|
Inventory cash flow hedges - losses
transferred to income statement
|
-
|
9
|
-
|
9
|
Other comprehensive expense for the period
|
(16)
|
(22)
|
-
|
(38)
|
Inventory cash flow hedges - losses
transferred to inventories
|
-
|
12
|
-
|
12
|
Tax on equity items
|
-
|
(4)
|
-
|
(4)
|
At
31 July 2023
|
134
|
(38)
|
159
|
255
|
|
|
|
|
|
Year
ended 31 January 2024
|
£ millions
|
Translation reserve
|
Cash
flow hedge reserve
|
Other
|
Total
|
At
1 February 2023
|
150
|
(24)
|
159
|
285
|
Inventory cash flow hedges - fair
value losses
|
-
|
(32)
|
-
|
(32)
|
Tax on items that will not be
reclassified subsequently to profit or loss
|
-
|
6
|
-
|
6
|
Currency translation
differences
Subsidiaries
|
(3)
|
-
|
-
|
(3)
|
Joint ventures
and associates
|
(1)
|
-
|
-
|
(1)
|
Transferred to
income statement
|
(2)
|
-
|
-
|
(2)
|
Inventory cash flow hedges - losses
transferred to income statement
|
-
|
12
|
-
|
12
|
Tax on items that may be
reclassified subsequently to profit or loss
|
-
|
(2)
|
-
|
(2)
|
Other comprehensive expense for the year
|
(6)
|
(16)
|
-
|
(22)
|
Inventory cash flow hedges - losses
transferred to inventories
|
-
|
33
|
-
|
33
|
Tax on equity items
|
-
|
(6)
|
-
|
(6)
|
At
31 January 2024
|
144
|
(13)
|
159
|
290
|
|
|
|
|
|
| |
15. Cash generated
by operations
£ millions
|
Half
year ended
31 July 2024
|
Half
year ended
31 July 2023
|
Year
ended
31
January 2024
|
Operating profit
|
374
|
367
|
580
|
Share of post-tax results of joint
ventures and associates
|
13
|
5
|
1
|
Depreciation and
amortisation
|
330
|
315
|
641
|
Net impairment losses
|
6
|
14
|
87
|
Losses/(gains) on disposals of
subsidiaries and associates
|
3
|
(2)
|
(2)
|
Lease gains
|
-
|
(1)
|
(7)
|
Share-based compensation
charge
|
12
|
12
|
22
|
(Increase)/decrease in
inventories
|
(82)
|
(89)
|
132
|
Increase in trade and other
receivables
|
(44)
|
(53)
|
(6)
|
Increase/(decrease) in trade and
other payables
|
244
|
219
|
(14)
|
Movement in provisions
|
(2)
|
-
|
(3)
|
Movement in post-employment
benefits
|
4
|
9
|
7
|
Cash generated by operations
|
858
|
796
|
1,438
|
16. Net
debt
£ millions
|
At
31 July
2024
|
At
31 July
2023
|
At
31
January 2024
|
Cash and cash equivalents
|
485
|
344
|
360
|
Bank overdrafts
|
(13)
|
(27)
|
(7)
|
Cash and cash equivalents and bank
overdrafts
|
472
|
317
|
353
|
Bank loans
|
-
|
(3)
|
(3)
|
Fixed term debt
|
(100)
|
(99)
|
(99)
|
Lease liabilities
|
(2,324)
|
(2,398)
|
(2,367)
|
Net financing derivatives
|
-
|
2
|
-
|
Net
debt
|
(1,952)
|
(2,181)
|
(2,116)
|
|
|
|
|
£ millions
|
Half
year ended
31 July
2024
|
Half
year ended
31
July 2023
|
Year
ended
31
January 2024
|
Net
debt at beginning of period
|
(2,116)
|
(2,274)
|
(2,274)
|
Net increase in cash and cash
equivalents and bank overdrafts
|
124
|
51
|
84
|
Arrangement fees paid
|
2
|
-
|
-
|
Net
cash flow
|
126
|
51
|
84
|
Movements in lease
liabilities
|
37
|
40
|
71
|
Exchange differences and other
non-cash movements
|
1
|
2
|
3
|
Net
debt at end of period
|
(1,952)
|
(2,181)
|
(2,116)
|
|
|
|
| |
17. Contingent
liabilities
The Group is subject to claims and
litigation arising in the ordinary course of business and provision
is made where liabilities are considered likely to arise on the
basis of current information and legal advice.
The Group files tax returns in many
jurisdictions around the world and at any one time is subject to
periodic tax audits in the ordinary course of its business.
Applicable tax laws and regulations are subject to differing
interpretations and the resolution of a final tax position can take
several years to complete. Where it is considered that future tax
liabilities are more likely than not to arise, an appropriate
provision is recognised in the financial statements.
In October 2017, the European
Commission opened a State Aid investigation into the Group
Financing Exemption of the UK controlled foreign company rules.
While the Group has complied with the requirements of UK tax law in
force at the time, in April 2019 the European Commission concluded
that aspects of the UK controlled foreign company regime partially
constitute illegal state aid. In January 2021, the company received
a charging notice from HM Revenue & Customs for £57m, which was
paid in February 2021, with a further £7m interest paid in April
2021.
The UK Government and the Company,
along with other UK-based multinational groups, appealed the
European Commission decision to the European Courts. In June 2022,
the General Court of the European Union dismissed several of those
appeals, including the UK Government's. The decision of the General
Court has been appealed to the Court of Justice and the hearing
took place on 10 January 2024. On 11 April 2024, the Advocate
General's opinion was published, proposing that the Court of
Justice should set aside the judgement of the General Court and
annul the European Commission's decision. The final decision is
expected on 19 September 2024.
The final impact on the company
remains uncertain but, based on advice taken, the Group continues
to consider that the amount paid of £64m plus repayment interest
accrued of £6m, which is included in non-current assets, will
ultimately be recovered.
18. Related party
transactions
The Group's significant related
parties are its joint venture and pension schemes as disclosed in
note 36 of the annual financial statements for the year ended 31
January 2024. In the prior year, the Group completed the disposal
of its 49% interest in its French associate investment Crealfi S.A.
There have been no other significant changes in related parties or
related party transactions in the period.
19. Post balance
sheet events
During the period since the
balance sheet date, the Group purchased 2.4 million of the
Company's own shares for cancellation at a cost of £8m. This amount
was deducted from equity in the half year to 31 July 2024 as a
result of an irrevocable buyback agreement which was in place at 31
July 2024.
STATEMENT OF DIRECTORS'
RESPONSIBILITIES
The Directors confirm that the
condensed interim financial statements have been prepared in
accordance with United Kingdom adopted International Accounting
Standard 34, "Interim Financial Reporting", and that the Interim
Results includes a fair review of the information required by DTR
4.2.7 and DTR 4.2.8, namely:
· an
indication of important events that have occurred during the period
and their impact on the interim condensed financial statements, and
a description of the principal risks and uncertainties for the
remainder of the financial year; and
· material related party transactions in the period and any
material changes in the related party transactions described in the
last annual report.
The Directors of Kingfisher plc were
listed in the Group's 2023/24 Annual Report and Accounts. A list of
current Directors is maintained on the Kingfisher plc website which
can be found at www.kingfisher.com.
By order of the Board
Thierry
Garnier
Bernard Bot
Chief Executive
Officer
Chief Financial Officer
16 September
2024
16 September 2024
INDEPENDENT REVIEW REPORT TO KINGFISHER PLC
Conclusion
We have been engaged by the company
to review the condensed set of financial statements in the
half-yearly financial report for the six months ended 31 July 2024
which comprises the consolidated income statement, the consolidated
statement of comprehensive income, the consolidated statement of
changes in equity, the consolidated balance sheet, the consolidated
cash flow statement and related notes 1 to 19.
Based on our review, nothing has
come to our attention that causes us to believe that the condensed
set of financial statements in the half-yearly financial report for
the six months ended 31 July 2024 is not prepared, in all material
respects, in accordance with United Kingdom adopted International
Accounting Standard 34 and the Disclosure Guidance and Transparency
Rules of the United Kingdom's Financial Conduct
Authority.
Basis for Conclusion
We conducted our review in
accordance with International Standard on Review Engagements (UK)
2410 "Review of Interim Financial Information Performed by the
Independent Auditor of the Entity" issued by the Financial
Reporting Council for use in the United Kingdom (ISRE (UK) 2410). A
review of interim financial information consists of making
inquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing
(UK) and consequently does not enable us to obtain assurance that
we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in note 2, the annual
financial statements of the group are prepared in accordance with
United Kingdom adopted international accounting standards and
International Financial Reporting Standards as issued by the IASB.
The condensed set of financial statements included in this
half-yearly financial report has been prepared in accordance with
United Kingdom adopted International Accounting Standard 34,
"Interim Financial Reporting".
Conclusion Relating to Going Concern
Based on our review procedures,
which are less extensive than those performed in an audit as
described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that the directors
have inappropriately adopted the going concern basis of accounting
or that the directors have identified material uncertainties
relating to going concern that are not appropriately
disclosed.
This Conclusion is based on the
review procedures performed in accordance with ISRE (UK) 2410;
however future events or conditions may cause the entity to cease
to continue as a going concern.
Responsibilities of the directors
The directors are responsible for
preparing the half-yearly financial report in accordance with the
Disclosure Guidance and Transparency Rules of the United Kingdom's
Financial Conduct Authority.
In preparing the half-yearly
financial report, the directors are responsible for assessing the
group's ability to continue as a going concern, disclosing as
applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to
liquidate the company or to cease operations, or have no realistic
alternative but to do so.
Auditor's Responsibilities for the review of the financial
information
In reviewing the half-yearly
financial report, we are responsible for expressing to the company
a conclusion on the condensed set of financial statements in the
half-yearly financial report. Our Conclusion, including our
Conclusion Relating to Going Concern, are based on procedures that
are less extensive than audit procedures, as described in the Basis
for Conclusion paragraph of this report.
Use
of our report
This report is made solely to the
company in accordance with ISRE (UK) 2410. Our work has been
undertaken so that we might state to the company those matters we
are required to state to it in an independent review report and for
no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the company,
for our review work, for this report, or for the conclusions we
have formed.
Deloitte LLP
Statutory Auditor
London, United Kingdom
16 September 2024