15th September 2015
As Kingfisher reports its first half figures this morning, Ian Forrest, investment research analyst at The Share Centre, explains what they mean for investors…
An improved set of first half results from retail group Kingfisher were announced this morning. Investors will be pleased to see that these results, supported by strong UK profit growth, revealed a 1% dividend increase – reflecting the group’s confidence in its medium-term expectations.
The owner of B&Q and Screwfix stated that its streamlining process to integrate many of its businesses is well underway. Today came news of further expansion of Screwfix in the UK, while some of its other European outlets are due to close.
Kingfisher‘s shares trade on a par with its main peers in the sector, however those interested in the company should note that progress may be held back as European and international sales continue to face stiff headwinds. We maintain a ‘hold’ recommendation on shares in the group. This is due to the good level of cash flow and the potential for the new strategy, however we currently prefer Travis Perkins for investors in the sector.