REG - Kingfisher PLC - Final Results
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RNS Number : 7745X Kingfisher PLC 24 March 2026
Full year results for the year ended 31 January 2026
Kingfisher delivers strong performance driven by strategic progress and
financial discipline
FY 25/26 Highlights
• Underlying(±) LFL sales +1.4% driven by volume & transaction
growth. Total sales +1.3%. UK banners driving growth LFL +3.3%
• Market share gains((2)) at B&Q, Screwfix, Brico Dépôt
France, Castorama France, and Spain. Poland trading in line with market
• Standout strategic delivery
- Trade sales growing +23% ex-Screwfix. Group trade sales
penetration increased to 30%
- E-commerce sales increased +20% ex-Screwfix. Group e-commerce
penetration 21%. Marketplace GMV grew +58% to £518m
• Adjusted PBT +6% to £560m, driven by gross margin expansion +80bps
and cost discipline, more than offsetting cost pressures. Statutory PBT +23%
to £378m
• Adjusted EPS up +15% to 23.8p supported by share buybacks
• Free cash flow of £512m underpinned by 5 days inventory
improvements
• Completed £300m share buyback. Announcing full year dividend of
12.40p per share
FY 26/27 Guidance((4))
• Adjusted PBT of £565m-£625m and free cash flow of £450m-£510m
• Commencement of new £300m share buyback programme
Thierry Garnier, Chief Executive Officer, said:
"We have continued to execute our strategy at pace and delivered good margin
and cost discipline. This resulted in significant market share gains, profit
growth of +13% when excluding last year's business rates one-off and strong
free cash flow.
Our UK banners led the way, with sales +4% at B&Q and +4.5% at Screwfix.
This reflects the growth of our digital ecosystem, increased share of wallet
from trade customers and the opening of 34 new stores.
We are making rapid progress against our strategic priorities across our
banners. Screwfix already derives c.75% of sales from trade customers and
c.60% from e-commerce. Elsewhere, trade sales increased +23% as we expanded
ranges, enhanced services, and deepened relationships with trade
professionals, while e‑commerce grew +20%, powered by the successful
scale‑up of our marketplaces. E-commerce now represents one fifth of total
Group sales.
With a mixed consumer environment across our markets, we continue to focus on
delivering our strategic priorities, maintaining cost discipline and driving
shareholder returns. This positions us well to capitalise on the attractive
long-term structural growth opportunities within our markets."
Key metrics* 2025/26 2024/25 % change reported % change cc**
LFL sales +1.1%
Gross profit £4,930m £4,763m +3.5% +2.5%
Gross margin % 38.1% 37.3% +80bps +80bps
Retail profit £734m £696m +5.4% +4.4%
Retail profit margin % 5.7% 5.4% +30bps
Adjusted pre-tax profit (PBT) £560m £528m +6.0%
Adjusted basic EPS 23.8p 20.7p +14.9%
Free cash flow £512m £511m +0.1%
Net leverage((3)) 1.4x 1.6x
Statutory measures
Total sales £12,945m £12,784m +1.3% +0.2%
Operating profit £469m £407m +15.2%
Pre-tax profit (PBT) £378m £307m +23.0%
Basic EPS 14.0p 10.1p +39.5%
Net cash flows from operating activities £1,433m £1,302m +10.1%
Total dividend per share 12.40p 12.40p -
*See page 4 for further details on non-GAAP measures and other terms;
**constant currencies;
(±)Underlying sales growth refers to sales excluding calendar and leap year
impact (LFL sales +1.1% + 0.3% = underlying LFL of +1.4%)((1)
)
Note: All commentary below is in constant currency unless otherwise stated.
Financial highlights
Sales
· +1.4% underlying LFL sales growth - volume-led and delivered
through our progress in strategic growth drivers, successful range reviews and
favourable UK weather in the spring
· LFL sales +3.3% B&Q, +3.2% Screwfix, (2.2)% Castorama France,
(2.3)% Brico Dépôt, (1.1)% Poland and +8.8% Iberia
· Banners across the Group outperformed their markets, while Poland
was in-line with the market
· B&Q and Screwfix were standout performers, driven by trade
and e-commerce initiatives, product innovation, transference from the closure
of Homebase stores, and strong seasonal sales
· Total sales +0.2%, were impacted by (0.9)% decline due to space
changes, reflecting a (1.6)% impact from the disposal of Romania and a +0.7%
contribution from net space growth
Gross margin
· +80 basis points to 38.1%, mainly from Kingfisher's buying and
sourcing scale, growth from marketplace and retail media, AI driven
promotional effectiveness, improved inventory management and clearance
activity, banner mix and FX tailwinds
Pre-tax profit
· Adjusted PBT +6.0% growth to £560m at reported rates. +13%
growth when excluding £33m one-off business rates refund benefit in the UK
included in the prior year
· Retail profit growth of +4.4% to £734m, representing a 5.7%
profit margin at reported rates (+30bps vs FY 24/25)
· Higher central costs +£18m were mainly driven by bonus and share
plans
· Lower net finance costs of £9m through lower lease interest and
higher interest income
· Statutory PBT of £378m, was up +23.0% (FY 24/25: £307m)
benefitting from lower impairment charges than the previous year, and includes
£111m of impairments in net store assets and goodwill
· Adjusted EPS increase of +14.9% to 23.8p, through our profit
delivery and ongoing share buyback programme. Statutory basic EPS was up
+39.5% YoY to 14.0p
Free cash flow
· £512m driven by earnings growth, receipts of tax settlements
relating to prior years and effective working capital management, while
increasing capex investment
· Gross capital expenditure was £388m, up £71m (+22%) through
freehold acquisitions at B&Q, investment in technology and in customer
facing maintenance in our existing stores
· Leverage reduced to 1.4x adjusted EBITDA (FY 24/25: 1.6x),
reflecting stronger free cash flow, further supported by £97m net one-off
cash inflows, primarily comprising a £64m EU state aid tax refund and £33m
in net proceeds from the sale of Romania
Strategic highlights
Grow our trade business
· Group trade sales now represent 30% of revenue (FY 24/25: 27%), trade
sales grew +23% excluding Screwfix (+12% with Screwfix), driven by our
expanding trade proposition across banners
· Dedicated trade zones are now live across all banners and present in
43% of stores (excluding Screwfix). Castorama France successfully rolled out
its CastoPro trade proposition across the estate in H1 and has since installed
50 dedicated trade zones in stores. Brico Dépôt France opened its first 2
Pro corners
· TradePoint announced its first standalone store opening in 2026 and
expanded its Direct‑to‑Site offer to include products beyond the
in‑store range
· Further investment in trade sales partners with 279 now in role
across the Group (FY 24/25: 105)
· We now have a trade loyalty proposition in all geographies with total
membership up +18% YoY
· Screwfix successfully launched a new in-app loyalty programme and an
enhanced Sprint proposition, with delivery now available in as little as 20
minutes covering c.60% of the UK population
· Poland's new loyalty programme, enhanced with a cash‑back feature,
has attracted 489,000 sign‑ups
· Our updated ambition is for Group trade sales to reach £5
billion in the medium term
Scale our digital ecosystem
· Group e-commerce sales penetration reached 21% (FY 24/25: 19%) and
e-commerce sales grew +20% excluding Screwfix (+11% including Screwfix)
· Marketplaces are now live across all regions. Group marketplace GMV
is up +58% to £518m
· B&Q now has 3.7m SKUs on its marketplace with GMV up +44% to
£445m and a retail profit contribution((5)) of £15m
· B&Q launched 15‑minute Click & Collect for 1P orders and
completed the rollout of the UK's first marketplace Click & Collect
service across 300 stores
· We have started onboarding cross-border vendors. Our Group-wide
onboarding process aims to provide vendors with a single pathway to access all
of Kingfisher's marketplaces
· AI-driven product recommendation and personalisation engines are live
in all banners (excluding Iberia)
· Retail media capabilities are now available across banner apps and
websites. In‑store digital media screens are in pilot at Screwfix, B&Q
and Castorama France
· Castorama France led the launch of Core IQ, our data‑monetisation
platform offering deep trading and digital performance insights to
vendors
Win through our offer, own exclusive brands and services
· OEB accounted for 43% of Group sales (FY 24/25: 44%)
· Launched second-generation Erbauer tool range, with Erbauer now the
number one tools brand sold across the Group
· Ashmead kitchen range launched across B&Q, Castorama France and
Castorama Poland, now our #1 volume driver in kitchen ranges sold
· Continued expansion of our OEB tool and equipment rental propositions
across banners
· Growing services offering covering design and installation, tool
rental and project financing
Grow our banners and formats
· Net store openings of 41 across our portfolio, which contributed
+0.7% to total Group sales
· B&Q opened 10 stores, including successfully converting 8 former
Homebase stores within 3 months of acquisition and closed 3 stores
· Screwfix opened 32 stores, including 13 new ultra-compact City stores
and closed 5 stores
· Castorama France opened its first 2 franchise stores in June 2025,
converted from its existing estate
· Brico Dépôt France opened one store in FY 25/26, transferred from
Castorama France in FY 24/25
· Castorama Poland opened one net store and is trialling standalone
Design Points, offering kitchen design services in high‑traffic shopping
malls
· Screwfix France opened five stores in northern France
Guidance((4)) for FY 26/27
We expect to deliver:
· Adjusted PBT in the range of approximately £565m-£625m
· Free cash flow in the range of approximately £450m-£510m
Key Assumptions:
· Space: sales impact of c.+1%, mainly from Screwfix UK &
Ireland, B&Q and Castorama Poland
· Net finance costs: c.£105m (FY 25/26: £91m)
· Adjusted effective tax rate: c.26% (FY 25/26: 26%)
· Capex: c.£400m (FY 25/26: £388m)
· £13m non-recurring 2025/26 losses((6))
Share buyback - completion of existing programme and new £300m programme announced
In line with our capital allocation policy, in March 2025 the Board determined
that a further £300m of surplus capital was available to return to
shareholders via a share buyback programme. We completed this programme on 5
March 2026.
The Board is pleased to announce the commencement of a further £300m share
buyback programme. Since September 2021 Kingfisher has completed £1.2bn of
share buybacks.
The remainder of this release consists of six sections:
1) Strategy update
2) Trading review by division
3) Financial review
4) Condensed financial statements
5) Forward-looking statements
6) Glossary
Footnotes
((1)) Underlying growth refers to LFL sales excluding calendar and leap year
impact:
Leap year impact reflects the impact of an extra day of trading on Thursday 29
February 2024. The estimated impact of the leap year on FY 25/26 LFL sales of
(0.2)%. Calendar impact represents the impact of the annual calendar shift on
LFL sales growth due to different days of the week falling into or out of the
current period compared to the prior period. For example, historically, higher
trading is seen on a Friday and Saturday as compared to a Sunday. This
includes the impact of national public holidays falling on different days of
the week compared to the prior period. The estimated impact of the annual
calendar shift on FY 25/26 LFL sales of (0.1)%.
((2)) Market numbers based on, GfK, BRC (British Retail Consortium) and
Barclays for UK; Nielsen IQ / GfK and Inoha for France; GFK for Poland; AECOC
for Spain.
((3)) Refers to net debt to Adjusted EBITDA. Net debt includes £2,238m (FY
24/25: £2,253m) of total lease liabilities, including nil of lease
liabilities held for sale (FY 24/25: £42m)
((4)) Guidance assumes current exchange rates.
((5)) Marketplace retail contribution includes only directly attributable run
costs.
((6)) £4m adjusted profit before tax loss Romania in 2025/26 (Romania
disposed in May 25), £9m adverse contribution to Group adjusted PBT in Turkey
in 2025/26. Will not recur as Turkey JV now fully impaired
Non-GAAP measures and other terms
Throughout this release '*' indicates the first instance of a term defined and
explained in the Glossary (Section 6). Not all the figures and ratios used are
readily available from the audited condensed financial statements included in
Section 4 of this announcement. Management believes that these non-GAAP
measures (or 'Alternative Performance Measures'), including adjusted profit
measures, constant currency and like-for-like (LFL) sales growth, are useful
and necessary to assist the understanding of the Group's results. Where
required, a reconciliation to statutory amounts is set out in the Financial
Review (Section 3).
Contacts
Tel: Email:
Investor Relations +44 (0) 20 7644 1082 investorenquiries@kingfisher.com (mailto:investorenquiries@kingfisher.com)
Media Relations +44 (0) 20 7644 1030 corpcomms@kingfisher.com (mailto:corpcomms@kingfisher.com)
Teneo +44 (0) 20 7420 3184 Kfteam@teneo.com (mailto:Kfteam@teneo.com)
Full year results announcement and data tables
This announcement and data tables for FY 25/26 can be downloaded from the
Investors section of our website at www.kingfisher.com/investors
(http://www.kingfisher.com/investors) .
Results presentation and Q&A
A pre-recorded analyst and investor presentation will be broadcast via the
Investors section of our website at www.kingfisher.com
(http://www.kingfisher.com) at 09.30 (UK time), which will be immediately
followed by a live virtual Q&A session with management.
For enquiries, please email investorenquiries@kingfisher.com
(mailto:investorenquiries@kingfisher.com) .
Financial calendar
Q1 26/27 trading update 26 May 2026
Annual General Meeting 26 June 2026(±)
Half year results 22 September 2026(±)
Q3 26/27 trading update 24 November 2026(±)
(±) Dates are provisional and may be subject to change
American Depository Receipts
Kingfisher American Depository Receipts are traded in the US on the OTCQX
platform: (OTCQX: KGFHY) www.otcmarkets.com/stock/KGFHY/quote
(http://www.otcmarkets.com/stock/KGFHY/quote)
Section 1: Strategy update
Better Homes. Better Lives. For Everyone. At Kingfisher, we believe a better
world starts with better homes and we strive to help make that happen.
We operate leading home improvement banners across the UK & Ireland,
France, Poland and Iberia, serving both Trade and DIY customers. Our strategy
centres on four strategic growth drivers for our business:
a) Grow our trade business
b) Scale our digital ecosystem
c) Win through our offer, own exclusive brands and services
d) Grow our banners and formats
Clear targets underpin our strategy
· Trade sales to reach £5bn revenues
· E-commerce to reach 30% sales penetration, with marketplace
generating 1/3 of e-commerce sales
· Retail media revenues of up to 3% of e-commerce sales
· Longer-term sales impact from net space c.+1.5% to +2.5% annually
Our ambition is to grow sales ahead of our markets, profit ahead of sales and
generate strong free cash flows.
a) Grow our trade business
Trade customers typically visit our stores more frequently and spend more than
the average retail customer. We are focused on expanding our trade customer
proposition across our banners through the further roll-out of trade counters,
dedicated colleagues, specialised product ranges, new services and loyalty
programmes, and an enhanced omni-channel customer experience.
Our updated ambition is for Group trade sales to exceed £5 billion in the
medium term.
Progress in FY 25/26
We made significant progress in expanding our trade business, leveraging our
existing store estate and building our expertise across stores, with trade
penetration reaching 30% of total Group sales (FY 24/25: 27%). Trade sales
reached £3.9bn with growth excluding Screwfix +23%.
Trade sales FY 25/26 Growth FY 25/26 penetration % Change
Sales £'m (pts)
B&Q 935 +5.2% 23.5% +0.3
Screwfix 2,055 +4.1% 74.6% (0.3)
Castorama France 71 n/m 3.5% +3.2
Brico Dépôt France 245 +26.1% 13.1% +2.9
Castorama Poland 496 +46.6% 26.9% +8.6
Brico Dépôt Iberia 84 +35.5% 19.7% +3.9
Group 3,886 +12.1% 30.0% +3.2
Group excluding Screwfix 1,831 +22.8% 18.0% +3.5
Stores: Dedicated trade zones are now live across all banners. Trade zones may
include elements such as dedicated customer parking, separate entrances and
distinct payment points to improve speed and convenience. 43% of our stores
(excluding Screwfix) have dedicated trade zones (32% FY 24/25).
Range and price: We expanded our trade-focused assortment with the addition of
new OEB and branded products, including our new generation Erbauer tools with
improved technical features. Our trade-specific range is further expanded
through direct-to-site ranges and supported by trade-specific pricing.
People: We are investing in colleagues dedicated to trade and continue to
recruit trade sales partners to build stronger and more personalised
relationships with trade customers. We now have 279 trade sales partners in
role (FY 24/25: 105) across the Group. Another area of focus has been on
larger B2B customers where Screwfix, B&Q, Castorama Poland have appointed
dedicated B2B managers.
Services: We continue to develop services for trade customers, including tool
rental, direct-to-site delivery, waste management and trade credit solutions.
Loyalty and apps: Identifying and engaging our trade customers enables us to
better understand their needs and grow our share of wallet. We now have a
trade loyalty proposition across all geographies, with total membership +18%
YoY. Our digital platforms continue to play a critical role, with app users
remaining our most loyal and valuable customers.
b) Scale our digital ecosystem
We are scaling our digital ecosystem to offer customers faster fulfilment of
orders by leveraging our store estate, and broader product ranges via our
marketplace. We are leveraging data and AI to optimise the digital shopping
journey. Our apps drive customer loyalty and engagement. With over 1bn annual
visits across our digital channels, we are offering vendors a powerful
platform to showcase their products through our growing retail media
capability. We are also using data and artificial intelligence to increase
productivity across our business.
Our ambition is for e-commerce to reach 30% sales penetration, one third of
which from marketplace, and for retail media and data monetisation income to
reach up to 3% of Group e-commerce sales.
Progress in FY 25/26
Our e-commerce strategy delivered strong results for the year. Total
e-commerce sales represent 21% of Group sales (FY 24/25: 19%) and grew +11% to
£2.7 billion, +20% excluding Screwfix.
E-commerce sales FY 25/26 Growth FY 25/26 Penetration % Change
Sales £'m (pts)
B&Q 713 +21.5% 16.7% +2.2
Screwfix 1,635 +5.2% 59.4% +0.4
Castorama France 175 +23.7% 8.6% +1.7
Brico Dépôt France 92 +3.1% 4.9% +0.2
Castorama Poland 84 +30.1% 4.5% +1.0
Brico Dépôt Iberia 32 +16.0% 7.3% +0.4
Group((1)) 2,737 +10.6% 20.6% +1.7
Group excluding Screwfix ( ) 1,102 +19.6% 10.5% +1.7
Speed and convenience: The expansion of digital fulfilment hubs within our
estate enables availability, speed and convenience for customers. Group click
& collect sales grew +8%, accounting for 63% of e-commerce sales (FY
24/25: 65%) and 88% of 1P e-commerce orders (FY 24/25: 88%). Home delivery
sales grew +16%, reflecting the continued scaling of our marketplace.
Choice: Marketplaces are now live in all our markets and scaling rapidly
through growth in vendors and SKUs. GMV* increased +58% to £518m, reaching
15% penetration of e-commerce sales (FY 24/25: 10%). Marketplace sales are
generating incremental traffic that benefits our 1P business. We continue to
scale the number of vendors and SKUs available with B&Q reaching 3.7m SKUs
and Castorama France 1.6m SKUs. On-boarding of cross-border vendors also
provides customers access to a wider range of international products. B&Q
marketplace achieved a retail profit contribution of £15m, while Castorama
France and Iberia marketplaces reached break even in 2025/26 after only two
years of operations.
Personalisation and AI: Our AI-driven product recommendation and
personalisation engines are live in all banners outside Iberia, accounting for
c.£165m of Group sales, +40% versus FY24/25. We have improved search
capabilities with our innovative visual search technology Lens to help
customers quickly find the right products to complete their jobs. Lens has
been used to complete c.300k visual searches.
Agentic commerce: We are preparing for the future of agentic commerce by
enabling AI agents to discover our products, connecting to our in-house AI
agents, extending natural language search across our websites, and building
external partnerships to support AI-powered shopping.
Loyalty and apps: Across the Group, app customers remain our most loyal and
valuable, spending c.14% more than non‑app users. Loyalty membership through
our app and rewards programmes increased +13%. App sales accounted for
29%((2)) of total e-commerce sales (FY 24/25: 28%), with an average of 3.5m
monthly app users (+15% YoY). We saw strong app-led engagement across our
banners.
Retail media and data monetisation: Retail media digital capabilities are now
live across all banners websites with testing of in‑store retail media
screens at B&Q, Screwfix and Castorama France. In parallel, we launched
Core IQ, our proprietary insights platform, which leverages Kingfisher's scale
and customer reach to provide vendors with deep performance insights.
Productivity: Our AI-driven markdown tool is now live in B&Q, Castorama
France and Poland. AI driven markdown resulted in a 15% reduction in markdown
costs in Castorama France. Our supply chain visibility tool is implemented in
all banners, supporting improved inventory management and faster replenishment
cycles. We are sharing data with 150 OEB vendors (representing 56% of OEB
sales) to allow collaborative planning, reducing average lead times and
minimum order quantities to support inventory optimisation. We also developed
our first AI-driven Content Generation tool being tested in four banners.
Footnotes
((1)) Group total includes Screwfix France and Romania. On 2 May 2025 the
Group completed the divestment of its 100% equity interest in Brico Dépôt
Romania.
((2)) App sales penetration of 29% of total e-commerce sales relates to
banners with an App (i.e. excludes Brico Dépôt France and Iberia).
c) Win through our offer, own exclusive brands and services
We are strengthening our customer offer by expanding choice through broader
product ranges including via our marketplace and new fulfilment propositions
and by enhancing our trade offer so we can support the full needs of our
customers. A key pillar of our offer is our own exclusive brands (private
label), where we provide innovative solutions at affordable prices. This
includes a rich portfolio of brands that have built strong customer
relationships in their respective categories over many years, while also
helping customers reduce environmental impacts through our sustainable
home-based products. Alongside this, we offer a growing portfolio of
complementary services that support customers with their projects and drive
deeper engagement.
Progress in FY 25/26
Offer: We have significantly expanded our product offer through marketplace,
now providing over 6m SKUs to complement our existing 1P ranges in‑store and
online. We are also strengthening our offer for trade customers, allowing us
to capture a greater share of wallet. We continue to strengthen our product
offering through extensive range reviews. c.15% of our Own Exclusive Brand
(OEB) ranges are refreshed or optimised each year, ensuring our offer remains
competitive, relevant and focused on customer needs.
Own exclusive brands: OEB remained a key source of differentiation, accounting
for £5.5 billion of sales, representing 43% of Group sales (FY 24/25: 44%),
and continues to be margin accretive relative to branded products. We launched
the second generation of Erbauer power tools, delivering improved power,
runtime and durability, along with strengthened guarantees. Since launch, the
range has achieved +43% sales growth compared with the previous generation.
Erbauer is now the number one tools brand sold across the Group. We remain
committed to offering customers innovation at affordable prices, targeting
prices 15-30% below branded products. This is enabled by strengthening our
ranges at opening price points (OPP) along with building up our presence
across all retail price quartiles, supported by the scale of our global
sourcing model. We launched the Forge Steel hand‑tools range in Brico
Dépôt France as our new OPP brand. Our entry‑price kitchen range, Pragma,
expanded from Brico Dépôt France to Castorama Poland, Brico Dépôt Iberia
and Screwfix. We also launched the Ashmead kitchen range at B&Q, Castorama
France and Castorama Poland, providing another opening price point option.
Ashmead has quickly become our #1 volume driver in kitchen ranges sold.
Showing our ability to meet customer needs across price quartiles, our higher
range Tydeman fitted kitchen in blackberry was recognized as the #1 'Kitchen
of the year' by Ideal Home.
We remain committed to helping our customers reduce their impact on the
environment by embedding environmental considerations at the core of our OEB
proposition. We have achieved 70% of OEB sales from sustainable home
improvement products (+7% vs. FY24/25), with over 20k SKUs labelled with our
green star marker, making it easier for customers to navigate and shop for
products with a lower impact on the environment. An example would be the OEB
peat free range of compost which grew +13%.
Services: We are strengthening our services offer for both DIY and trade
customers, focusing on solutions that remove key pain points across complex
home improvement projects. This includes design, installation and financing
services that support customers through full kitchen, bathroom and storage
projects. We are also working to grow installation service participation to
drive complete‑project sales and create additional work for trade
professionals within our loyalty programmes.
d) Grow our banners and formats
Our banners hold leading positions in their key markets, each with a distinct
model and clear customer proposition, supported by a range of store formats.
Where attractive space opportunities exist that meet our investment criteria,
we continue to complement our existing store estate. Compact stores play an
important role in our expansion, allowing us to capture customers in
high-density urban areas and offering convenience and fast fulfilment through
Click & Collect and home delivery.
Our longer-term ambition is for net space growth to drive an uplift in sales
of c.+1.5% to +2.5% per annum.
Progress in FY 25/26
Number of stores FY 25/26 FY 24/25 Net openings/ Planned
closures Net openings/
closures FY 26/27
B&Q 317 310 7 5
Screwfix 979 952 27 12
Castorama France* 94 94 - (1)
Brico Dépôt France* 127 126 1 2
Castorama Poland 108 107 1 2
Brico Dépôt Iberia 31 31 - 2
Screwfix France & Other 35 30 5 5
Group 1,691 1,650 41 27
*Includes franchise stores
In FY 25/26 we opened 41 net stores across our banners. Total sales were
impacted by (0.9)% decline due to space changes, reflecting a (1.6)% impact
from the disposal of Romania and a +0.7% contribution from net space growth.
We exited the Romanian market on 2 May 2025 through the disposal of our 100%
interest in the business. We will continue to supply OEB products into Romania
through our wholesale partnership with Altex, the acquirer of our Romanian
business.
Lead the industry in Responsible Business and energy efficiency
We are committed to leading our industry in responsible business practices and
energy efficiency across four priority areas for Responsible Business where we
can maximise our positive impact on the lives of our customers, colleagues,
communities, and the planet. For more detail please refer to our FY 25/26
Annual Report to be published in April 2026 and FY 24/25 Responsible Business
Report available here
(https://www.kingfisher.com/~/media/Files/K/Kingfisher-Plc/Universal/documents/responsible-business/RB-Report/2025/Kingfisher-plc-Responsible-Business-Report-2024-25.pdf)
.
Agile, human and lean
We have adopted a culture of speed and agility, given the rapidly changing
environment in which we do business. This helps us to structurally reduce our
cost base, with highlights for the year of the programme including:
- Logistics efficiencies supported by ongoing optimisation of
transport and warehouse operations including a reduction in distribution
centre space of c.10% in France and c.28% in Poland
- Property cost reductions with the Group completing 86 lease renewals
and renegotiations during the year, delivering an average net rent reduction
of c.14% alongside improvements to lease terms
- In‑store productivity gains through revised retail structures and
updated ways of working including a reduction in managerial roles, with hours
reallocated to strengthen customer‑facing positions at B&Q and continued
the investment in self‑checkout solutions across our banners
- Head office productivity gains including an 80 FTE reduction in the
Castorama France Head office
- GNFR procurement efficiencies with c.£2.4bn of addressable GNFR*
spend optimised through more than 300 cost‑reduction and productivity
initiatives
For more detail on agile, human and lean - please refer to our FY 25/26 Annual
Report to be published in April 2026.
Medium‑Term financial Priorities and Capital Allocation
Medium-term financial priorities
With our banner's leading market positions and momentum with our strategic
growth drivers, we remain confident in our medium-term financial priorities as
follows:
- Sales to grow ahead of our markets:
- LFL sales growth driven by growing our trade business, scaling our
digital ecosystem and through our offer, own exclusive brands and services
- Sales impact of c.+1.5% to +2.5% from annual net space growth in the
long term
- Profit to grow faster than sales:
- Supported by scale benefits, higher margin initiatives, operating cost
leverage, and multi-year structural cost reduction opportunities
- Strong cash generation to drive growth investment and attractive
shareholder returns:
- Free cash flow of above £500m in the medium-term, supported by profit
growth and ongoing working capital management
Capital allocation priorities
The Group's objectives in managing capital are to:
- Invest in attractive growth opportunities
- Deliver sustainable dividend growth
- Provide capital returns to shareholders
- Maintain financial resilience and an efficient balance sheet
We allocate capital, subject to strict returns criteria, to growth
opportunities with high ROCE aligned with our strategic priorities. Our target
gross capital expenditure is c.3% of total sales per annum.
Our target ordinary dividend cover range is 2.25 to 2.75 times, based on
adjusted basic earnings per share. We may move outside of this target range,
from time to time. Overall, our aim is to grow the ordinary dividend
progressively over time. If surplus capital remains after having achieved all
the above objectives, the Board will return surplus capital to shareholders
primarily via share buybacks.
To maintain a solid investment grade credit rating, our maximum net debt to
Adjusted EBITDA is c.2.0 times over the medium term. To retain financial
flexibility, we aim to maintain strong liquidity headroom (including cash,
cash equivalents and committed debt facilities), which is currently set at a
minimum of £800m. As of 31 January 2026, the Group had access to over £1.1bn
in total liquidity, including cash and cash equivalents of £462m (net of bank
overdrafts), and access to a £650m RCF.
Dividend for FY 25/26
The Board has proposed a final dividend per share of 8.60p (FY 24/25 final
dividend: 8.60p). This results in a proposed total dividend per share of
12.40p in respect of FY 25/26, which is in line with the prior year (FY 24/25:
12.40p) and equates to a dividend cover of 1.9 times.
The final dividend is subject to shareholder approval at the Annual General
Meeting on 26 June 2026. If approved, it will be paid on 03 July 2026 to
shareholders on the register at close of business on 29 May 2026. The shares
will go ex-dividend on 28 May 2026.
A dividend reinvestment plan (DRIP) is available to shareholders who would
prefer to invest their dividends in the Company's shares. The last date for
receipt of DRIP elections is 12 June 2026.
New £300m share buyback programme
In line with our capital allocation policy, the Board has determined that
surplus capital is available for return to shareholders. Further to the
ordinary dividend and the recently completed £300m share buyback programme,
the Board is pleased to announce the return of a further £300m of surplus
capital via a share buyback programme. The first tranche of this programme
will begin soon. Since September 2021, Kingfisher has completed £1.2bn of
share buybacks.
Section 2: Trading review by division
Note: all commentary below is in constant currency.
UK & IRELAND
£m 2025/26 2024/25 % Reported Change % Constant % LFL
Currency Change
Change
B&Q 3,971 3,820 +4.0% +3.9% +3.3%
Screwfix 2,755 2,636 +4.5% +4.5% +3.2%
Total sales 6,726 6,456 +4.2% +4.1% +3.3%
Retail profit 575 558 +3.0% +2.9%
Retail profit margin % 8.5% 8.6% (10)bps
Market
- The home improvement market was flat on a full year basis, aided by
favourable weather in H1 driving strong demand for seasonal products
B&Q
- Total sales +3.9% to £3,971m. LFL +3.3% driven by volume, progress
in trade and digital, customer transference from the closure of Homebase
stores and strong seasonal performance in Q1
- Core +1.6% led by tools and paint. Big-ticket +6.2% driven by the
successful introduction of new kitchen ranges, supported by strong growth in
Installations +22%. Seasonal +6.5%, driven by strong performance of outdoor
categories in Q1, helped by favourable weather and successful capture of
Homebase transference
- Market share gains driven by progress in our strategic initiatives,
big ticket innovation, successful capturing of transference from the Homebase
store closures and opening of 8 former Homebase stores
- E-commerce sales +21.5%, with penetration of 16.7% (FY 24/25: 14.6%)
and strong performance across 1P and 3P. Marketplace GMV((1)) grew +44.3% to
£445m with a retail profit contribution((2)) of c.£15m. In addition to its
15-minute C&C for 1P orders, B&Q successfully rolled out the UK's
first marketplace C&C service for 3P products across 300 stores. We have
strengthened store‑to‑home fulfilment capabilities by expanding our
Deliveroo partnership to more B&Q stores. B&Q's AI‑powered product
recommendation and personalisation engines generated c.10% of e‑commerce
sales. Hello B&Q, a new digital virtual AI assistant that provides
customers with tailored advice and product recommendations, launched in Q4.
B&Q also launched Lens, our visual search technology, in its app, with
Lens users nearly twice as likely as website users to convert product views
into purchases
TradePoint
- Sales grew to £935m +5.2%, accounting for 23.5% of B&Q total
sales (FY 24/25: 23.3%). TradePoint expanded to 224 B&Q stores,
representing 70% of the total estate (FY 24/25: 217). 123 trade sales partners
are in role (FY 24/25: 44), supporting strong trade sales performance. We
expanded the direct‑to‑site offer, enabling trade customers to access
products beyond our in‑store range and improving conversion of inbound
enquiries into orders. Our partnership with Speedy Hire provides trade
customers with access to heavy machinery and tools in store and via our
digital channels. Trade credit solutions are live with up to 60 days of
interest-free credit
- E-commerce at TradePoint saw strong growth +12%, particularly in
C&C driving store footfall. App downloads were 3 times higher in the
current year, with app sales now accounting for 28% of TradePoint's online
sales and stronger sales conversion rates versus the website
- Space growth contributed +0.6%. B&Q rapidly converted 8 acquired
Homebase stores early 2025. Its 12 Compact stores continue to show encouraging
performance, with growth in new customers and C&C penetration running at
c.3x that of the rest of the estate. TradePoint announced its first standalone
store to be opened in London in Q1 2026, targeting trade customers working in
dense urban areas
Screwfix
- Total sales +4.5% to £2.755m, LFL +3.2% driven by strong volume
growth and supported by range expansion, growing app usage and a new loyalty
programme
- Core categories (c.85% of the total) grew +3.2%. Performance was
broad-based across safety & workwear, sealants & adhesives, power
tools & accessories, electrical and plumbing
- Strong market share gains across categories as Screwfix reaches new
customers and continues to enhance its customer proposition
- Trade credit solutions are live with up to 60 days of interest-free
credit. Screwfix launched a new rewards programme through its app, with strong
early engagement leading to a +13% increase in active rewards customers to
2.2m, supported by gamified campaigns, personalised offers and surprise perks
- E-commerce sales increased +5.2%, bringing e-commerce sales
penetration to 59.4% (FY 24/25: 58.2%). App sales grew by +14% and now account
for over 41% of e-commerce sales (FY 24/25: 38%), helped by improved offering
and personalised rewards, a visual search engine Lens, streamlined collection
via Check-In, and rapid delivery. We have strengthened our store‑to‑home
fulfilment capabilities by expanding our Deliveroo partnership to more
Screwfix stores, complementing Screwfix's Sprint proposition, with deliveries
in as little as 20 minutes to 60% of the UK postcodes
- Space growth contributed +1.3% to total Screwfix sales with 27 net
store openings. This included 13 new ultra-compact City stores bringing the
total to 39, as our convenient locations better target professionals serving
high density areas. We see potential for up to 100 City stores over time and
remain on track to reach the medium-term goal of over 1,000 Screwfix stores
UK&I Retail Profit
- Gross margin increased +80bps supported by effective management of
product costs, supplier rebates, the margin-accretive impact of B&Q's
expanding marketplace and the contribution of retail media income, supported
by FX tailwinds
- Operating costs increased +7.3% driven by higher staff costs due to
wage inflation, labour flexing to support increased volumes, increased UK
employer NI contributions, costs from new store openings, higher variable
compensation and the annualisation of last year's £33m one-off business rates
refund at B&Q. Cost increases were partially offset by savings achieved
through structural cost reductions
- Retail profit increased +2.9% to £575m (FY 24/25: £558m) or +9.4%
when excluding last year's one-off business rates refund. Retail profit margin
declined (10) bps to 8.5%, primarily due to the annualization of last year's
business rates refund at B&Q. Excluding this prior year one-off UK profit
margin improved +40bps
FRANCE
£m 2025/26 2024/25 % Reported Change % Constant % LFL
Currency Change
Change
Castorama 2,000 2,014 (0.7)% (2.3)% (2.2)%
Brico Dépôt 1,866 1,869 (0.2)% (1.8)% (2.3)%
Total sales 3,866 3,883 (0.4)% (2.1)% (2.2)%
Retail profit 97 95 +2.7% +1.0%
Retail profit margin % 2.5% 2.4% +10bps
Market
- Market declined by c.(3)%, as consumer savings rates continue to be
elevated
Castorama
- Total sales (2.3)% to £2,000m. LFL (2.2)% ahead of the market
despite disruption from restructuring the store portfolio. As 10% of the store
estate was undergoing transformation, H2 LFL were impacted c.(0.6)%
- To improve the overall offer 15% of ranges were reviewed with
encouraging impact on volume in surfaces & décor, tools and garden.
Seasonal performance of (0.9)% was ahead of other categories driven by cooling
and outdoor in H1, while big ticket suffered from low demand in the market
with LFL (4.5)%
- Trade sales growth was driven by the successful roll-out of the
CastoPro trade proposition across the estate in H1, the rapid introduction of
dedicated CastoPro zones in 50 stores and the implementation of a trade
loyalty programme. Trade penetration reached 9% at the end of FY 25/26. Our
in‑house CastoRent service is now available across 14 stores, offering
low‑cost tool rental and increasing exposure to our Erbauer and MacAllister
OEB ranges
- E-commerce sales growth was driven by the rapid expansion of
Castorama's marketplace. Castorama onboarded 978 merchants, growing
marketplace to 1.6m SKUs and reaching online penetration of 21%. Hello Casto,
our AI virtual assistant, continued to enhance customer experience and
supported conversion across 1P and 3P. Hello Casto visits increased +61%,
and we have seen customers who click through to a product from the assistant
convert at more than twice the Castorama France average. Our in-house
AI‑powered product recommendations and personalisation now generate c.30% of
app revenue. Our data monetisation platform Core IQ was successfully launched
and more than 120 1P vendors now use the platform
- Space contributed (0.1)% to Castorama total sales, reflecting the
successful conversion and opening of two franchise stores within the existing
estate in June 2025. The three compact stores are trading ahead of the estate
average, with an opportunity to expand this concept over time
- Castorama is making rapid progress in the restructuring and
modernisation of its lowest-performing stores. 24 stores (c.25% of estate)
have now been addressed under the following initiatives, delivering
encouraging early results:
- Eight rightsized stores: Four completed in FY 25/26 have on average
delivered double-digit percentage improvements in sales density on average
compared to the Castorama France average. Four are scheduled to complete in FY
26/27
- Seven comprehensive refits: Toulon La Seyne and Givors were
completed in H1, with resulting LFL sales performance well ahead of the
Castorama France average. Five have been completed in Q1 26/27
- Five light touch modernisations: The stores completed in the year
have delivered improvements in sales density compared with the Castorama
France average following their reopening
- Two stores, transferred to Brico Dépôt: Montgeron has increased
sales by c.10% along with a selling space reduction of 20% following transfer
to the Brico Dépôt banner. The second store in Le Havre is expected to
reopen in Q2
- Franchises: The first two franchise stores opened in June, with
first results encouraging. The transition to a franchise model has moved these
stores from loss‑making positions to a positive profit contribution
- Building on this momentum, Castorama has initiated work on a further
nine stores
Brico Dépôt
- Total sales (1.8)% to £1,866m. LFL (2.3)% with improving sequential
trends from H1 to H2 and sales performance ahead of the market. Continued
strong focus on trade professionals, improved customer offer, enhanced ranges
and leading price positioning in key categories
- Core LFL sales improved in H2 (2.2)% vs H1 (5.1)% with building and
joinery benefitting from increased investment in commercial campaigns.
Big-ticket sales (1.2)% were supported by kitchen range reviews but impacted
by market weakness, particularly in H2. Seasonal sales +1.1% had a strong H2,
led by heating propellants and garden power tools
- Trade sales grew +26%, driven by significant development of the
trade proposition. Penetration reached 13.1%, up 290bps, supported by Brico
Dépôt's efficient model offering competitive pricing and high in‑store
availability for time‑pressed tradespeople. Brico Dépôt opened two Pro
corners during the year, built out its trade focused range and increased
investment in dedicated trade sales partners. Trade loyalty membership more
than doubled. Brico Dépôt strengthened its price competitiveness with
bulk‑buy pricing offers, driving volume growth in key products
- E-commerce penetration reached 4.9%, with momentum from upgrades to
our web presence
- Space growth contributed +0.5% driven by the successful opening of
the store transferred from Castorama, where sales increased by c.10% along
with a selling space reduction of 20%. The second transferred store, in Le
Havre, is expected to reopen in Q2 FY 26/27. Brico Dépôt France will also
expand its partnership with Mr Bricolage, converting a Mr Bricolage store into
a Brico Dépôt franchise in FY 26/27, in addition to the existing OEB supply
arrangement. The three 1,000 sqm Brico Dépôt compact stores currently open
continue to trade well ahead of the estate average
France Retail profit
- Gross margin increased +60bps, reflecting the effective management
of product costs and supplier negotiations, lower stock provisions driven by
better inventory management and lower logistics costs from the reduction of
c.10% of distribution centre space
- Operating costs decreased (0.6)%, with increases in staff pay,
social taxes and IT costs offset by savings from structural cost reductions,
and the flexing of staff levels and discretionary spend
- Retail profit increased +1.0% to £97m (FY 24/25: £95m, at reported
rates). Retail profit margin increased by +10bps to 2.5% (FY 24/25: 2.4%)
despite market decline of 3%
- In 2024 we announced a plan to drive the next level of our
performance and profitability in France. The plan targets a retail profit
margin of c.5%-7% over the medium term, driven by a combination of self-help
measures and operating leverage from an improved market environment. We are
pleased with the delivery of our self-help measures. The French market has
declined by c.10% since 2024, therefore the timing and trajectory of reaching
our target is dependent on the pace of the market recovery
POLAND
£m 2025/26 2024/25 % Reported Change % Constant % LFL
Currency Change
Change
Total sales 1,843 1,788 +3.1% - (1.1)%
Retail profit 87 90 (3.5)% (6.4)%
Retail profit margin % 4.7% 5.1% (40)bps
Market
- Market flat, with continued geopolitical uncertainty impacting the
home improvement market
Poland
- Total sales flat at £1,843m. LFL (1.1)% reflecting a challenging
market backdrop with sales performance in line with the market (as measured by
GfK)
- LFL returned to growth in Q4, led by seasonal sales aided by colder
weather. Core delivered sequential improvement in LFL in H2 (0.4)% vs H1
(2.5)% led by building & joinery, as OEB range reviews in interior doors
delivered strong results. Full year big-ticket sales were (0.1)% with strong
performance in kitchens driven by new ranges and targeted promotional
activities, offset by softer performance in bathrooms. Installation services
for kitchens and flooring are seeing increasing uptake
- Trade sales growth of +46.6% with penetration reaching 27% (FY
24/25: 18%) as Castorama drove further rollout of CastoPro zones, recruited
specialised trade sales partners and optimised its ranges for pro customers.
120 trade sales partners are now in role. The new loyalty programme which
includes a cash-back feature saw 489k sign-ups and is successfully driving
footfall into stores. In addition, CastoRent is offering tool rental for
tradespeople
- E-commerce sales increased +30% to £84m, benefiting from the launch
of marketplace. A year into launch, Castorama's marketplace has recruited +350
vendors and reached 21% of e-commerce sales in January 2026
- Space growth contributed +1.1% to total sales from one net store
opening in the current year, following 5 in the prior year. The proven 4,000
sqm medium‑box format and the Smart compact store concept continue to expand
our population reach and enable entry into new catchments. We are also
piloting standalone Design Points in high‑traffic shopping malls, leveraging
strong footfall to showcase our kitchen ranges, with orders fulfilled by
nearby stores
Poland Retail profit
- Gross margin increased by 20bps, reflecting the effective management
of product costs and supplier negotiations, partially offset by higher
promotional sales, as consumers continue to focus more of their spend around
promotional events
- Operating costs increased +1.7% with increases in staff pay and IT
costs, partially offset by structural cost reductions and the flexing of staff
levels and discretionary spend. IT costs include a one‑off c.£5m impairment
charge related to the acceleration of next‑generation technology, which
resulted in the write‑down of legacy systems. Excluding this charge,
operating costs increase would have been +0.8%
- Retail profit decreased by (6.4)% to £87m (FY 24/25: £90m). Retail
profit margin decreased by (40) bps to 4.7%, at reported rates (FY 24/25:
5.1%). Excluding the impairment charge, retail profit margin would have been
broadly flat
OTHER INTERNATIONAL
2025/26 2024/25 % Reported Change % Constant % LFL
Currency Change
Change
Sales (£m)
Iberia 425 384 +10.6% +8.8% +8.8%
Screwfix France & Other(±) 25 16 +42.4% +40.3% n/a
Romania** 60 257 n/a n/a n/a
Other International 510 657 (22.5)% (23.3)% +8.0%
Other International (excl. Romania) 450 400 +12.0% +10.1% +9.3%
Retail profit (£m)
Iberia 15 8 +86.0% +82.9%
Screwfix France & Other(±) (31) (35) (9.5)% (10.9)%
Turkey (50% JV) (6) (9) n/a n/a
Romania** (3) (11) n/a n/a
Other International (25) (47) (46.0)% (43.6)%
Other International (excl. Romania) (22) (36) (37.9)% (34.3)%
(±) Screwfix France & Other consists of the consolidated results of
Screwfix International, and results from franchise and wholesale agreements.
The prior year comparator includes NeedHelp - we divested our c.80% equity
interest on 18 July 2024.
**On 2 May 2025 the Group completed the divestment of its 100% equity interest
in Brico Dépôt Romania. The Group recognised a £31m loss on disposal
(included in adjusting items). Please see note 4 and 12 of the condensed
financial statements in Section 4 for more details.
Iberia
- Sales increased by +8.8% to £425m. LFL +8.8% driven by volume &
transaction growth. Positive LFL across all categories. Continued strong focus
on trade professionals, improved customer offer, enhanced ranges and leading
price positioning in key categories. Growth was also supported by strong
demand in Valencia following last year's flood damage
- Market share gains in Spain (AECOC) driven by strong price
positioning and effective commercial activation programmes
- Trade sales growth +35.5% with penetration reaching 19.7% (FY 24/25:
15.8%) driven by the successful launch of the new loyalty programme BricoClub
Pro and creation of trade zones in 6 stores
- E-commerce marketplace continued to scale, reaching 30% of
e-commerce online sales (FY 24/25: 25%). Brico Dépôt Spain has launched a
hub network to fulfil e-commerce orders covering its entire estate. The
transition to a digital‑hub fulfilment model led to a 10bps increase in
digital conversion and improved gross margin driven by lower delivery costs
and reduced stock shrinkage
- Retail profit increased to £15m (FY 24/25: £8m), reflecting higher
gross profit and strong cost control
Screwfix France & Other
- Following first opening in Q4 2022, Screwfix France now has a total
of 35 stores in operation, of which 5 stores were opened in the year. Store
LFL sales grew +49%((3)), supported by the benefits of network effects and
growing brand awareness in northern France, as successful marketing is driving
increases in store traffic. Brand awareness in the North region reached 21%
(+4pts). LFL growth continues to be higher in the more recently launched
cohorts and strongest in areas with higher network effect. Trade penetration
is at 54% (FY 24/25: 50%) with continued focus on enhancing the customer
proposition through trade brands and trade-focused campaigns
- Franchise and wholesale agreements currently in place with seven
partners that are buying selected Own Exclusive Brand (OEB) products,
including Altex in Romania following their purchase of Brico Dépôt Romania.
This has contributed c.£4m in retail profit for the current year
- Combined retail loss of £31m (FY 24/25: £35m)
Turkey
- Total contribution to Group adjusted PBT was a net loss of £9m as
demand remained constrained by high inflation and interest rates, though the
environment improved over the year, with LFL sales returning positive for the
full year
- Please see note 4 of the condensed financial statements in Section 4
for more details
Romania
- On 2 May 2025 the Group completed the divestment of its 100% equity
interest in Brico Dépôt Romania for proceeds of £53m. The Group recognised
a £31m loss on disposal (included in adjusting items)
- Kingfisher continues to supply OEB products into Romania through our
wholesale partnership with Altex
- Please see note 4 and 12 of the condensed financial statements in
Section 4 for more details
LFL sales by category
Q4
% LFL Change
Core 'Big-ticket' Seasonal Q4 25/26
UK & Ireland +2.7% +2.2% (1.8)% +2.2%
-B&Q +1.4% +1.9% (1.5)% +1.1%
-Screwfix +4.0% +3.1% (2.5)% +3.5%
France (1.7)% (3.9)% (1.5)% (2.2)%
-Castorama (1.1)% (5.4)% (4.8)% (2.6)%
-Brico Dépôt (2.3)% (2.7)% +3.1% (1.7)%
Poland +0.4% (0.8)% +10.9% +1.4%
Other International* +5.3% +1.0% +14.7% +5.3%
-Iberia +4.5% +0.2% +14.7% +4.7%
Group LFL +1.3% (0.9)% +0.7% +0.9%
Excluding calendar impact +1.0% (1.2)% +0.4% +0.6%
*Includes Screwfix France and other
FY
% LFL Change
Core 'Big-ticket' Seasonal FY 25/26
UK & Ireland +2.4% +5.0% +6.1% +3.3%
-B&Q +1.6% +6.2% +6.5% +3.3%
-Screwfix +3.2% +2.4% +4.4% +3.2%
France (2.8)% (2.7)% (0.1)% (2.2)%
-Castorama (1.9)% (4.5)% (0.9)% (2.2)%
-Brico Dépôt (3.7)% (1.2)% +1.1% (2.3)%
Poland (1.5)% (0.1)% (0.8)% (1.1)%
Other International* +9.2% +6.3% +5.7% +8.0%
-Iberia +10.5% +5.4% +6.8% +8.8%
-Romania (4.1)% +8.7% +1.6% n/a
Group LFL +0.6% +1.1% +2.8% +1.1%
Excluding calendar impact +0.9% +1.4% +3.1% +1.4%
*Includes Screwfix France and other
Core (67% of sales): UK performance remained solid, led by strong interior
paint sales at B&Q and sustained growth in tools at Screwfix. Iberia
reported strong growth across all categories, whereas trading in France and
Poland was comparatively softer.
Big-ticket (15% of sales): Growth was led by kitchen category sales,
particularly at B&Q, supported by recent range reviews and soft prior-year
comparators, with Brico Dépôt France and Poland also delivering solid
performance. Softer performance in Bathrooms with range reviews planned for FY
26/27.
Seasonal (18% of sales): Performance was led by the UK, supported by
favourable weather in Q1 with LFL +28%, driven by outdoor and garden
categories. In Poland unfavourable H1 weather was partly offset by beneficial
weather in Q4.
Footnotes to trading review by division:
((1)) Marketplace GMV is the total transaction value (including VAT) from the
sale of products supplied by third-party e-commerce marketplace vendors. What
is recorded in revenue is the commission take rate which is c.10-15% of GMV.
((2)) Marketplace retail contribution includes only directly attributable run
costs.
((3)) Store LFL sales excludes online sales (Screwfix France launched as an
online-only proposition in April 2021, with the first store opening in October
2022).
Section 3: Financial review
A summary of the reported financial results for the twelve months ended 31
January 2026 is set out below. To be read in conjunction with the condensed
financial statements included in Section 4 of this announcement.
Note: all commentary below is in constant currency, unless stated otherwise
Financial summary % Total Change % Total Change
2025/26 2024/25 Reported Constant currency
Sales £12,945m £12,784m +1.3% +0.2%
Gross profit* £4,930m £4,763m +3.5% +2.5%
Gross margin % 38.1% 37.3% +80bps +80bps
Operating profit £469m £407m +15.2%
Statutory pre-tax profit (PBT) £378m £307m +23.0%
Statutory post-tax profit £245m £185m +32.7%
Statutory basic EPS 14.0p 10.1p +39.5%
Net cash flows from operating activities £1,433m £1,302m +10.1%
Total dividend per share 12.40p 12.40p -
Adjusted metrics
LFL sales +1.1%
Retail profit £734m £696m +5.4% +4.4%
Retail profit margin % 5.7% 5.4% +30bps
Adjusted pre-tax profit (PBT) £560m £528m +6.0%
Adjusted pre-tax profit margin %* 4.3% 4.1% +20bps
Adjusted post-tax profit* £416m £381m +9.2%
Adjusted basic EPS 23.8p 20.7p +14.9%
Free cash flow £512m £511m +0.1%
Net leverage((1)) 1.4x 1.6x
( )
((1)) Refers to net debt to Adjusted EBITDA. Net debt includes £2,238m (FY
24/25: £2,253m) of total lease liabilities, including nil of lease
liabilities held for sale (FY 24/25: £42m).
Total sales increased by +0.2%, to £12,945m. Excluding Romania the Group's
total sales increased by +1.8%. UK & Ireland and Iberia achieved sales
growth ahead of their markets. France declined against a subdued consumer
backdrop but outperformed the market. Poland sales were flat and in line with
the market. On a reported basis, which includes the impact of exchange rates,
total sales increased by +1.3%.
LFL sales of +1.1% excludes a (1.6)% impact from the disposal of Romania and a
+0.7% contribution from net space growth. Underlying LFL sales performance
(excluding calendar and leap year impacts) was +1.4%.
Space growth was driven by the conversion of acquired Homebase stores at
B&Q, new Screwfix openings in the UK and France, and expansion at
Castorama Poland. 41 net stores were opened during the year.
Please see section 1 "Grow our banners and formats" for more details.
A reconciliation from LFL sales to total sales is set out below:
2025/26 2024/25 Increase/ (decrease)
£m £m
LFL sales (constant currency) 12,749 12,609 +1.1%
Non-LFL sales 196 307 n/a
Total sales (constant currency) 12,945 12,916 +0.2%
Impact of exchange rates - (132) n/a
Total sales (reported rates) 12,945 12,784 +1.3%
Gross margin % increased +80 basis points to 38.1%, mainly from Kingfisher's
buying and sourcing scale, growth from marketplace and retail media, AI driven
promotional effectiveness, improved inventory management and clearance
activity, banner mix, the disposal of Romania and FX tailwinds. Group gross
profit was up by +2.5%.
Operating costs increased by 2.1%. Excluding prior year business rates refunds
at B&Q, operating costs increased by 1.3%, driven primarily by new store
openings, higher staff pay rates, higher variable compensation, and increased
employer national insurance contributions in the UK, as well as similar taxes
in France. These increases were partly offset by structural savings delivered
through our cost‑reduction programme, alongside targeted actions in France
and Poland to flex staffing levels and discretionary spend.
Retail profit increased by 4.4% to £734m, reflecting higher profits in the UK
and Iberia despite the prior year benefitting from £33m business rates
refunds in B&Q. On a reported basis, retail profit increased by 5.4%. The
Group's retail profit margin increased by 30 basis points to 5.7%, at reported
rates (FY 24/25: 5.4%).
Adjusted pre-tax profit increased by +6% to £560m on a reported rate basis
(FY 24/25: £528m), reflecting higher retail profit and lower net finance
costs, partially offset by higher central costs. Adjusted pre-tax profit
margin was up by 20bps to 4.3% (FY 24/25: 4.1%).
Statutory pre-tax profit increased by +23.0% to £378m (FY 24/25: £307m).
This reflects higher operating profit and lower adjusting items YoY (see
adjusting items below).
A reconciliation from the adjusted basis to the statutory basis for pre-tax
profit is set out below:
2025/26 2024/25 Increase/ (decrease)
£m £m
Retail profit (constant currency) 734 703 +4.4%
Impact of exchange rates - (7) n/a
Retail profit (reported) 734 696 +5.4%
Central costs (80) (62) +28.9%
Share of interest and tax of joint ventures & associates (3) (6) n/a
Net finance costs (91) (100) (9.2)%
Adjusted pre-tax profit 560 528 +6.0%
Adjusting items before tax (182) (221) n/a
Statutory pre-tax profit 378 307 +23.0%
Net finance costs of £91m (FY 24/25: £100m) consist principally of interest
on lease liabilities.
Adjusting items before tax were a total charge of £182m (FY 24/25: charge of
£221m), driven by the Goodwill impairment in Castorama France, store
impairment charges, the disposal of Romania, along with operating model
restructuring costs.
The charges also include a £19m impairment of the Group's joint venture,
Koçtaş, reflecting the continued challenging trading environment and ongoing
macro‑economic uncertainty in Turkey. Following this impairment, the
carrying amount of the investment has been reduced to nil. Please see note 4
in the condensed financial statements included in Section 4.
Taxation
The Group's adjusted effective tax rate (ETR) is sensitive to the blend of tax
rates and profits in the Group's various jurisdictions. It is higher than the
UK statutory rate because of the amount of Group profit that is earned in
higher tax jurisdictions, and because no future benefit is assumed for losses
incurred in certain overseas territories. The adjusted ETR, calculated on
profit before adjusting items, prior year tax adjustments, one-off items, and
the impact of future rate changes, is 26% (FY 24/25: 28%). The adjusted ETR is
lower than the prior year rate primarily due to lower losses recorded in
territories in which tax credits are not recognised, and limited losses
recorded in Brico Dépôt Romania following the Group's divestment of the
business on 2 May 2025.
The statutory effective tax rate includes the impact of adjusting items
(including prior year tax items). The impact of these result in a statutory
effective tax rate of 35%.
Pre-tax profit Pre-tax profit
£m Tax 2025/26 £m Tax 2024/25
£m % £m %
Adjusted effective tax rate 560 (144) 26% 528 (147) 28%
Adjusting items (182) 11 (221) 25
Statutory effective tax rate 378 (133) 35% 307 (122) 40%
In FY 21/22, Kingfisher paid £64m (including interest) to HM Revenue &
Customs (HMRC) in relation to the European Commission's 2019 state aid
decision concerning the UK's controlled foreign company tax rules. In
September 2024, the European Court of Justice annulled this decision, and, in
March 2025, HMRC repaid the tax and interest previously assessed, plus a £5m
payment of interest (interest payment included in free cashflow). This has
been reflected in "other tax authority receipt" in the cashflow statement and
does not form part of free cash flow.
Adjusted basic earnings per share increased by 14.9% to 23.8p (FY 24/25:
20.7p), which excludes the impact of adjusting items. Basic earnings per share
increased by 39.5% to 14.0p (FY 24/25: 10.1p). Please refer to note 7 of the
condensed financial statements in Section 4 for more detail.
Management of balance sheet and liquidity risk and financing
Management of cash and debt facilities
Kingfisher regularly reviews the level of cash and debt facilities required to
fund its activities. This involves preparing a prudent cash flow forecast for
the medium term, determining the level of debt facilities required to fund the
business, planning for repayment or refinancing of debt, and identifying an
appropriate amount of headroom to provide a reserve against unexpected
outflows and/or impacts to cash inflows. To retain financial flexibility, we
aim to maintain strong liquidity headroom (including cash and cash
equivalents, short term deposits and committed debt facilities), which is
currently set at a minimum of £800m.
Net debt to adjusted EBITDA
As of 31 January 2026, the Group had £1,878m (FY 24/25: £2,015m) of net debt
on its balance sheet. Net debt includes £2,238m (FY 24/25: £2,253m) of total
lease liabilities, including nil of lease liabilities held for sale (FY 24/25:
£42m). The ratio of the Group's net debt to adjusted EBITDA was 1.4 times as
of 31 January 2026 (1.6 times as of 31 January 2025). At this level, the Group
has financial flexibility while retaining an efficient cost of capital. The
Group's target maximum net debt to adjusted EBITDA is c.2.0 times over the
medium term. Please refer to 'Key strategic priorities and medium-term
financial and capital allocation priorities' in Section 4 for further details.
Refer to 'Key strategic priorities and medium-term financial and capital
allocation priorities' in Section 1.
Net debt to adjusted EBITDA is set out below:
2025/26 2024/25
£m £m
Retail profit 734 696
Central costs (80) (62)
Depreciation and amortisation 667 656
Adjusted EBITDA 1,321 1,290
Net debt 1,878 2,015
Net debt to adjusted EBITDA 1.4 1.6
Credit ratings
Kingfisher holds a BBB credit rating with Fitch and a BBB rating with Standard
and Poor's. The outlook is Stable across both agencies.
Revolving credit facility
In May 2024 the Group entered into a new £650m Revolving Credit Facility
(RCF) agreement with a group of its relationship banks, linked to
sustainability targets. In May 2025 the credit facility was extended by one
year and now expires in May 2028. As of 31 January 2026, this RCF was undrawn.
Term loans
The Group's two term loans were refinanced in H1 25/26 with £50m now maturing
in June 2027 and £50m in January 2028, with the latter linked to the Group's
sustainability targets.
Covenants
The terms of the committed RCF and both term loans require that the ratio of
Group operating profit (excluding adjusting items) to net interest payable
(excluding interest on IFRS 16 lease liabilities) must be no less than 3:1 for
the preceding 12 months as at the half and full year-ends. As of 31 January
2026, Kingfisher was compliant with this requirement.
Total liquidity
As of 31 January 2026, the Group had access to over £1.1bn in total
liquidity, including cash and cash equivalents of £462m (net of bank
overdrafts), and access to a £650m RCF.
Free cash flow
A reconciliation of free cash flow is set out below:
2025/26 2024/25
£m £m
Operating profit 469 407
Adjusting items 182 221
Operating profit (before adjusting items) 651 628
Other non-cash items((1)) 728 703
Change in working capital 74 108
Pensions and provisions (5) (5)
Net rent paid (508) (512)
Net interest received 23 15
Tax paid (63) (109)
Gross capital expenditure (388) (317)
Free cash flow 512 511
Ordinary dividends paid (218) (228)
Share buybacks (256) (225)
Share purchase for employee incentive schemes (25) (26)
Disposal of NeedHelp - (3)
Disposal of Romania 33 -
Other tax authority receipt((2)) 64 -
Investment in joint venture - (19)
Disposal of assets and other((3)) (3) (19)
Net cash flow* 107 (9)
Opening net debt (2,015) (2,116)
Lease liabilities disposed 38 -
Movements in lease liabilities (1) 107
Other movement including foreign exchange (7) 3
Closing net debt (1,878) (2,015)
((1)) Includes depreciation and amortisation, share-based compensation charge
and pension operating cost.
((2)) Refund received in relation to the EC state aid challenge (refer to
Taxation section above for further details).
((3)) Includes adjusting cash flow items (principally comprising restructuring
costs), partially offset by proceeds from the issue of new shares and the
disposal of assets.
Operating profit (before adjusting items) was £23m higher than last year,
reflecting higher retail profit partially offset by higher central costs. The
working capital inflow of £74m was largely driven by an increase in payables
of £91m. This increase reflects higher purchasing to replenish availability
following stronger LFL sales and higher deferred income. Inventory ending the
year broadly flat (up £1m) as higher volumes including store expansion were
offset by a five day reduction in stock days. Receivables increased by £16m,
driven in part by increase in trade credit sales and prepayments related to
tech contracts.
Net tax paid was £46m lower than last year, predominantly reflecting receipts
of refunds relating to settlements of prior years.
Gross capital expenditure up £71m (+22%) to £388m, with increase driven by
freehold acquisition, technology investment and spend in existing stores. 32%
of capex was invested in growth (new stores, new tech and range reviews), 42%
in store and tech maintenance, and 25% in other areas, including supply chain
investment and the B&Q freehold acquisition.
Overall, free cash flow was £512m. Net debt as of 31 January 2026 (including
lease liabilities) was £1,878m (FY 24/25: £2,015m).
A reconciliation of net cash flows from operating activities to free cash flow
and net cash flow, and to the statutory net movement in cash and cash
equivalents and bank overdrafts, is set out below:
2025/26 2024/25
£m £m
Net cash flows from operating activities 1,433 1,302
Net lease rent paid (508) (512)
Net interest received 23 15
Gross capital expenditure (388) (317)
Other tax authority receipt((1)) (64) -
Operating cash flows relating to adjusting items((2)) 16 23
Free cash flow 512 511
Ordinary dividends paid (218) (228)
Share buybacks (256) (225)
Share purchase for employee incentive schemes (25) (26)
Other tax authority receipt((1)) 64 -
Investment in joint venture - (19)
Disposal of Romania 33 -
Disposal of NeedHelp - (3)
Disposal of assets and other((3)) (3) (19)
Net cash flow 107 (9)
Arrangement fees paid (1) (2)
Net increase in cash and cash equivalents 106 (11)
and bank overdrafts
((1)) Refund received in relation to the EC state aid challenge (refer to
Taxation section above for further details).
((2)) Includes cash flows relating to adjusting items, principally comprising
restructuring costs.
((3)) Includes adjusting cash flow items (principally comprising restructuring
costs), partially offset by proceeds from the issue of new shares and the
disposal of assets.
Pensions
As at 31 January 2026, the Group had a net defined benefit pension asset of
£83m (2025: £101m), comprising a £181m surplus in the UK scheme and an
overseas net deficit of £98m. The reduction in the net surplus primarily
reflects asset losses partially offset by reduced liabilities due to a higher
discount rate for the UK scheme. In accordance with the scheme's Statement of
Funding Principles, the Trustee and Kingfisher agreed to cease annual employer
contributions for the period from August 2022 to July 2025, and subsequently
for the period from August 2025 to July 2028. A full actuarial valuation of
the UK scheme is carried out every three years, with the latest completed at
31 March 2022 and the 2025 valuation ongoing. Please refer to note 9 of the
condensed financial statements in Section 4.
Return on capital employed (ROCE*)
In FY 25/26, Kingfisher's post-tax ROCE was 8.2% (FY 24/25: 7.4%). The
increase was primarily driven by higher profits in UK & Ireland.
Kingfisher's weighted average cost of capital (WACC) was 8.4% (FY 24/25:
8.8%). ROCE by geographic division is analysed below:
Proportion of Group sales Capital employed (CE) £bn Proportion of Group CE
Sales ROCE ROCE
£bn 2025/26 2024/25
UK & Ireland 6.7 52.0% 2.8 46.8% 15.5% 14.9%
France 3.9 29.9% 1.6 27.7% 4.4% 4.3%
Poland 1.8 14.2% 1.2 19.4% 6.1% 6.4%
Other International 0.5 3.9% 0.2 3.9% n/a n/a
Central 0.1 2.1% n/a n/a
Total 12.9 5.9 8.2% 7.4%
Property
Kingfisher owns a significant property portfolio, the majority of which is
used for trading purposes. A formal valuation of the portfolio was undertaken
by external professional valuers in October 2025. Based on this exercise, on a
sale and leaseback basis with Kingfisher in occupancy, the value of the
property portfolio was £2.8bn (FY 24/25: £2.7bn). This is compared to a net
book value of £2.2bn (FY 24/25: £2.2bn) recorded in the financial statements
(including investment property and property included within assets held for
sale). Balance sheet values were frozen as of 1 February 2004, on transition
to IFRS.
2025/26 2025/26 Yields 2024/25 2024/25 Yields
£bn £bn
France 1.3 8.3% 1.3 8.4%
UK 0.6 7.5% 0.5 7.5%
Poland 0.8 8.6% 0.7 8.3%
Other 0.1 n/a 0.2 n/a
Total 2.8 2.7
Risks
The Group's principal risks and uncertainties have been reviewed as part of
our full year procedures. We have introduced a new technology resilience risk
to reflect the importance of developing and maintaining resilient systems. We
have also merged risks relating to changing customer expectations and
competitor behaviour into a single market landscape risk.
Further details of the Group risks and risk management process can be found in
the FY 25/26 Annual Report and Accounts.
Section 4: Condensed financial statements
Kingfisher plc
2025/26 Condensed Financial Statements
Consolidated income statement
Year ended 31 January 2026
2025/26 2024/25
Before adjusting items Adjusting Before adjusting items Adjusting
items items
£ millions Notes (note 4) Total (note 4) Total
Sales 3 12,945 - 12,945 12,784 - 12,784
Cost of sales (8,015) - (8,015) (8,021) - (8,021)
Gross profit 4,930 - 4,930 4,763 - 4,763
Selling and distribution expenses (3,212) (61) (3,273) (3,122) (99) (3,221)
Administrative expenses (1,082) (73) (1,155) (1,018) (97) (1,115)
Other income 24 2 26 20 - 20
Other expenses - (31) (31) - (25) (25)
Share of results from equity accounted investments (9) (19) (28) (15) - (15)
Operating profit 3 651 (182) 469 628 (221) 407
Finance costs (124) - (124) (132) - (132)
Finance income 33 - 33 32 - 32
Net finance costs 5 (91) - (91) (100) - (100)
Profit before taxation 560 (182) 378 528 (221) 307
Income tax expense 6 (144) 11 (133) (147) 25 (122)
Profit for the year 416 (171) 245 381 (196) 185
Earnings per share 7
Basic 14.0p 10.1p
Diluted 13.8p 9.9p
Adjusted basic 23.8p 20.7p
Adjusted diluted 23.4p 20.4p
The proposed dividend for the year ended 31 January 2026, subject to approval
by shareholders at the Annual General Meeting, is 12.40p per share, comprising
an interim dividend of 3.80p in respect of the six months ended 31 July 2025
and a final dividend of 8.60p.
Kingfisher plc
2025/26 Condensed Financial Statements
Consolidated Statement of Comprehensive Income
Year ended 31 January 2026
£ millions Notes 2025/26 2024/25
Profit for the year 245 185
Remeasurements of post-employment benefits 9 (7) (11)
Inventory cash flow hedges - fair value (losses)/gains (74) 22
Tax on items that will not be reclassified 21 28
Total items that will not be reclassified subsequently to profit or loss (60) 39
Currency translation differences
Subsidiaries 97 (25)
Equity accounted investments (1) 6
Transferred to income statement 12 14 -
Inventory cash flow hedges - losses transferred to income statement - 1
Total items that may be reclassified subsequently to profit or loss 110 (18)
Other comprehensive income for the year 50 21
Total comprehensive income for the year 295 206
Kingfisher plc
2025/26 Condensed Financial Statements
Consolidated Statement of Changes in Equity
Year ended 31 January 2026
2025/26
Own shares held Capital redemption reserve
Share capital Share premium Retained earnings Other reserves Total equity
£ millions Notes
At 1 February 2025 282 2,228 (34) 3,475 94 299 6,344
Profit for the year - - - 245 - - 245
Other comprehensive (expense)/income for the year - - - (4) - 54 50
Total comprehensive income for the year - - - 241 - 54 295
Inventory cash flow hedges - - - - - - 36 36
losses transferred to inventories
Share-based compensation - - - 27 - - 27
New shares issued under 1 - - 8 - - 9
share schemes
Own shares issued under - - 21 (21) - - -
share schemes
Purchase of own shares for (14) - - (301) 14 - (301)
cancellation
Purchase of own shares for - - (25) - - - (25)
ESOP trust
Dividends 8 - - - (218) - - (218)
Tax on equity items - - - 1 - (10) (9)
At 31 January 2026 269 2,228 (38) 3,212 108 379 6,158
2024/25
Own shares held Capital redemption reserve
Share capital Share premium Retained earnings Other reserves Total equity
£ millions Notes
At 1 February 2024 294 2,228 (31) 3,741 82 290 6,604
Profit for the year - - - 185 - - 185
Other comprehensive income/(expense) for the year - - - 23 - (2) 21
Total comprehensive income/(expense) for the year
- - - 208 - (2) 206
Inventory cash flow hedges -
losses transferred to inventories - - - - - 15 15
Share-based compensation - - - 20 - - 20
New shares issued under - - - 2 - - 2
share schemes
Own shares issued under - - 23 (23) - - -
share schemes
Purchase of own shares for (12) - - (251) 12 - (251)
cancellation
Purchase of own shares for - - (26) - - - (26)
ESOP trust
Dividends 8 - - - (228) - - (228)
Tax on equity items - - - 6 - (4) 2
At 31 January 2025 282 2,228 (34) 3,475 94 299 6,344
Kingfisher plc
2025/26 Condensed Financial Statements
Consolidated Balance Sheet
Year ended 31 January 2026
£ millions Notes 2025/26 2024/25
Non-current assets
Goodwill 2,239 2,312
Other intangible assets 261 312
Property, plant and equipment 3,206 3,105
Investment property 88 34
Right-of-use assets 1,830 1,771
Equity accounted investments - 29
Post-employment benefits 9 181 202
Deferred tax assets 6 7
Derivative assets - 2
Other receivables 13 11
7,824 7,785
Current assets
Inventories 2,768 2,719
Trade and other receivables 289 276
Derivative assets 1 22
Current tax assets 47 78
Other tax authority asset 13 - 69
Cash and cash equivalents 465 336
Assets held for sale 4 158
3,574 3,658
Total assets 11,398 11,443
Current liabilities
Trade and other payables (2,524) (2,355)
Borrowings (3) (108)
Lease liabilities (351) (345)
Derivative liabilities (22) (5)
Current tax liabilities (13) (6)
Provisions (29) (16)
Liabilities directly associated with assets held for sale - (92)
(2,942) (2,927)
Non-current liabilities
Other payables (2) (2)
Borrowings (100) (1)
Lease liabilities (1,887) (1,866)
Derivative liabilities (1) -
Deferred tax liabilities (207) (193)
Provisions (3) (9)
Post-employment benefits 9 (98) (101)
(2,298) (2,172)
Total liabilities (5,240) (5,099)
Net assets 6,158 6,344
Equity
Share capital 269 282
Share premium 2,228 2,228
Own shares held in ESOP trust (38) (34)
Retained earnings 3,212 3,475
Capital redemption reserve 108 94
Other reserves 379 299
Total equity 6,158 6,344
The financial statements were approved and authorised by the Board of
Directors on 23 March 2026 and signed on its behalf by:
Thierry
Garnier
Bhavesh Mistry
Chief Executive
Officer
Chief Financial Officer
Kingfisher plc
2025/26 Condensed Financial Statements
Consolidated Cash Flow Statement
Year ended 31 January 2026
£ millions Notes 2025/26 2024/25
Operating activities
Cash generated from operations 10 1,434 1,411
Income tax paid (65) (109)
Other tax authority receipt 13 64 -
Net cash flows from operating activities 1,433 1,302
Investing activities
Purchase of property, plant and equipment and investment property (303) (241)
Purchase of intangible assets (85) (76)
Proceeds from disposals of property, plant and equipment and investment 2 -
property
Proceeds from disposals of property assets held for sale 2 2
Joint venture capital contributions - (19)
Disposal of subsidiaries, net of cash disposed 12 33 (3)
Investments in short-term deposits (227) -
Maturity of short-term deposits 227 -
Interest received 31 23
Interest element of sublease rental receipts - 1
Principal element of sublease rental receipts 2 2
Advance payments on right-of-use assets (13) (5)
Net cash flows used in investing activities (331) (316)
Financing activities
Interest paid (8) (8)
Interest element of lease rental payments (118) (123)
Principal element of lease rental payments (379) (387)
Arrangement fees paid (1) (2)
New shares issued under share schemes 9 2
Purchase of own shares for cancellation (256) (225)
Purchase of own shares for ESOP trust (25) (26)
Ordinary dividends paid to equity shareholders of the Company 8 (218) (228)
Net cash flows used in financing activities (996) (997)
Net increase/(decrease) in cash and cash equivalents and bank overdrafts 106 (11)
Cash and cash equivalents and bank overdrafts at beginning of year 336 353
Exchange differences 20 (6)
Cash and cash equivalents and bank overdrafts at end of year 11 462 336
Cash and cash equivalents and bank overdrafts at the end of the year include
£nil of cash included within assets held for sale on the balance sheet
(2024/25: £9m).
Kingfisher plc
2025/26 Condensed Financial Statements
Notes to the Condensed Financial Statements
1. General information
Kingfisher plc ('the Company'), its subsidiaries and joint ventures (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 1
Paddington Square, London, W2 1GG.
2. Basis of preparation
The consolidated financial statements of the Group are made up to 31 January.
The current financial year is the year ended 31 January 2026 ('the year' or
'2025/26'). The comparative financial year is the year ended 31 January 2025
('the prior year' or '2024/25').
The condensed financial information, which comprises the consolidated income
statement, consolidated statement of comprehensive income, consolidated
statement of changes in equity, consolidated balance sheet, consolidated cash
flow statement and related notes do not constitute statutory financial
statements for the year ended 31 January 2026 but are derived from those
statements. Statutory financial statements for 2024/25 have been filed with
the Registrar of Companies and those for 2025/26 will be filed in due course.
The Group's auditors have reported on both years' accounts; their reports were
unqualified and did not contain statements under Section 498 (2) or (3) of the
Companies Act 2006.
The condensed financial information has been abridged from the 2025/26
statutory financial statements, which have been prepared in accordance with
United Kingdom adopted international accounting standards and International
Financial Reporting Standards (IFRS Standards). The financial statements have
also been prepared in accordance with International Financial Reporting
Standards as issued by the IASB. The consolidated income statement and related
notes represent results for continuing operations, there being no discontinued
operations in the years presented. The condensed financial information has
been prepared under the historical cost convention, as modified by the use of
valuations for certain financial instruments, share-based payments and
post-employment benefits.
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 of at least 12
months from the date on which the financial statements are authorised for
issue, and they continue to adopt the going concern basis of accounting in
preparing the consolidated financial statements for the year ended 31 January
2026.
The financial position of the Group, its cash flows, liquidity position and
borrowing facilities are described in the Financial Review in Section 3 of
this announcement. The Directors have considered these areas alongside the
principal risks and how they may impact the going concern assessment. Further
details, including the analysis performed and conclusions reached, are set out
below.
As of 31 January 2026, Kingfisher had access to £1,112m of liquidity,
comprising cash and cash equivalents (net of bank overdrafts) of £462m and
access to an undrawn Revolving Credit Facility (RCF) of £650m (which expires
at the end of May 2028). The ratio of net debt to Adjusted EBITDA was 1.4 as
of 31 January 2026.
The terms of the RCF require that the ratio of Group operating profit
(excluding adjusting items) to net interest payable (excluding interest on
lease liabilities) must be no less than 3:1 for the preceding 12 months as at
the half-year and full-year ends. As of 31 January 2026, Kingfisher was
compliant with this requirement.
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 remainder of the year. The total loss of sales in
this scenario is c.£1.8bn (13% 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 would require temporarily drawing on the RCF, the Group
retains adequate headroom on its credit facilities. Given current trading and
expectations for the business, the Directors believe that this scenario
reflects a remote outcome for the Group. Should a more extreme scenario occur
than currently modelled by the Directors under this remote scenario, the Group
would need to implement additional operational or financial measures.
Accounting policies
The accounting policies adopted are consistent with those of the annual
financial statements for the year ended 31 January 2025, as described in note
2 of those financial statements.
Critical accounting judgements and key sources of estimation uncertainty
The critical accounting judgements and key sources of estimation uncertainty
are consistent with those of the annual financial statements for the year
ended 31 January 2025, as described in note 3 of those financial statements.
New and amended accounting standards
New standards, amendments and interpretations are in issue and effective for
the Group's financial year ended 31 January 2026, but they do not have a
material impact on the consolidated financial statements.
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
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 profit before tax, before central
costs, the Group's share of interest and tax from equity accounted
investments, adjusting items and net finance costs. Central costs principally
comprise the costs of the Group's head office, before adjusting items. This is
the Group's operating profit measure used to report the performance of the
Group's retail businesses.
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, which the Group identifies as adjusting due to
volatility which can arise year-on-year based on future forecasts and
assumptions;
· 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; and
· 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 a better 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 Glossary 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.
Principal rates of exchange against Sterling
2025/26 2024/25
Average rate Year end rate Average rate Year end rate
Euro 1.16 1.15 1.18 1.20
US Dollar 1.33 1.37 1.28 1.24
Polish Zloty 4.93 4.86 5.08 5.04
Romanian Leu 5.88 5.88 5.89 5.95
Turkish Lira1 59.58 59.58 44.38 44.38
1 The Turkish Lira average exchange rates represent the closing rates for the
year, due to the application of hyperinflation accounting in Turkey.
3. Segmental analysis
Income statement
2025/26
£ millions UK & Ireland France Poland Other International Total
Sales 6,726 3,866 1,843 510 12,945
Retail profit/(loss) 575 97 87 (25) 734
Central costs (80)
Share of interest and tax of equity accounted investments (3)
Adjusting items (182)
Operating profit 469
Net finance costs (91)
Profit before taxation 378
2024/25
£ millions UK & Ireland France Poland Other International Total
Sales 6,456 3,883 1,788 657 12,784
Retail profit/(loss) 558 95 90 (47) 696
Central costs (62)
Share of interest and tax of equity accounted investments (6)
Adjusting items (221)
Operating profit 407
Net finance costs (100)
Profit before taxation 307
The Group's operating segments are based on the information reported
internally to the Board of Directors and Group Executive, and are generally
determined to be the retail banners operating in each geographical area (i.e.
B&Q and Screwfix in the UK & Ireland; Castorama, Brico Dépôt and
Screwfix in France; Castorama in Poland; Brico Dépôt in Iberia; Brico
Dépôt in Romania and Koçtaş, the Group's joint venture in Turkey).
NeedHelp, an online services marketplace, and the Group's franchising and
wholesaling operation are also determined to be operating segments. On 18 July
2024, the Group completed the divestment of its c.80% equity interest in
NeedHelp. On 2 May 2025, the Group completed the divestment of its 100%
interest in Brico Dépôt Romania.
The reportable segments disclosed above are based on the geographical areas in
which the Group operates. Within both the UK & Ireland and France
reportable segments, operating segments determined at the retail banner level
have been aggregated to form reportable segments (i.e. B&Q and Screwfix in
the UK & Ireland, and Castorama and Brico Dépôt in France). Other
operating segments, which do not individually meet the definition of a
reportable segment, are combined and presented as 'Other International',
consisting of Brico Dépôt Iberia, Brico Dépôt Romania, Screwfix France,
Koçtaş, results from franchising and wholesaling operations and in the prior
year, NeedHelp. Screwfix France has not been aggregated as part of the France
reportable segment due to its level of maturity relative to Castorama France
and Brico Dépôt France.
Central costs principally comprise the costs of the Group's head office before
adjusting items.
The majority of the sales in each segment are derived from in-store and online
sales of products.
4. Adjusting items
£ millions 2025/26 2024/25
Included within selling and distribution expenses
Net store asset impairment losses (38) (94)
Operating model restructuring (26) (5)
Release of France restructuring provisions 3 -
(61) (99)
Included within administrative expenses
Castorama France goodwill impairment (73) (84)
Castorama France head office restructuring - (15)
UK guaranteed minimum pension credit - 2
(73) (97)
Included within other income/(expenses)
Loss on disposal of Brico Dépôt Romania (31) -
Profit on disposal of properties 2 -
Impairments of Romania assets and other exit costs - (22)
Loss on disposal of NeedHelp - (3)
(29) (25)
Included within share of post-tax results of equity accounted investments
Joint venture (Koçtaş) asset impairments (19) -
Adjusting items before tax (182) (221)
Prior year and other adjusting tax items 11 25
Adjusting items (171) (196)
Net store asset impairment charges of £38m have been recognised in the year.
Impairment charges of £80m have been recorded principally in France and the
UK, partially offset by impairment reversals of £42m in France, the UK and
Iberia, reflecting store-level performance and revised future financial
projections.
Operating model restructuring costs of £26m have been incurred relating to
store operating model programmes in the UK & Ireland and Poland. In the UK
& Ireland, implementation of a new simplified retail leadership structure
across all B&Q stores commenced during the year, following a successful
year-long test of the proposed structure. Total operating model restructuring
costs of £22m have been incurred relating to this programme. In Poland,
restructuring costs of £4m have been incurred relating to store operating
model simplification programmes. Both the UK & Ireland and Poland
programmes are expected to be completed in 2026/27, at a total cost of
c.£30m.
A £3m release of restructuring provisions was recognised in respect of legacy
store closure programmes in France, following the settlement of costs at
amounts below those initially estimated.
An impairment charge of £73m has been recorded relating to goodwill allocated
to Castorama France, driven by revised financial projections which reflect a
subdued French DIY market in 2025/26.
The disposal of the Brico Dépôt Romania business was completed in May 2025,
resulting in a loss on disposal of £31m. See note 12 for further details.
A profit of £2m has been recorded on the exit of one property in France and
one property in the UK.
A £19m charge was recognised in respect of the Group's joint venture,
Koçtaş, reflecting the continued challenging trading environment and ongoing
macro-economic uncertainty in Turkey.
Prior year and other adjusting tax items relate principally to current and
deferred tax credits recorded in respect of the net store asset impairment
losses and restructuring expenses noted above, movements in prior year
provisions to reflect a reassessment of expected outcomes, agreed positions
with tax authorities and items that have time-expired.
5. Net finance costs
£ millions 2025/26 2024/25
Bank overdrafts, bank loans and derivatives - (1)
Fixed term debt (6) (8)
Lease liabilities (118) (123)
Finance costs (124) (132)
Cash and cash equivalents and short-term deposits 22 22
Net interest income on defined benefit pension schemes 7 7
Finance lease income - 1
Other interest income 4 2
Finance income 33 32
Net finance costs (91) (100)
6. Income tax expense
£ millions 2025/26 2024/25
UK corporation tax
Current tax on profits for the year (78) (79)
Adjustments in respect of prior years 12 4
(66) (75)
Overseas tax
Current tax on profits for the year (37) (26)
Adjustments in respect of prior years (6) 4
(43) (22)
Current tax (109) (97)
Deferred tax
Current year (16) (13)
Adjustments in respect of prior years (8) (12)
Deferred tax (24) (25)
Income tax expense (133) (122)
The adjusted effective tax rate on profit before adjusting items is 26%
(2024/25: 28%). The adjusted effective tax rate calculation is set out in the
Financial Review in Section 3 of this announcement.
7. Earnings per share
Pence 2025/26 2024/25
Basic earnings per share 14.0 10.1
Effect of dilutive share options per share (0.2) (0.2)
Diluted earnings per share 13.8 9.9
Basic earnings per share 14.0 10.1
Adjusting items before tax per share 10.5 12.0
Prior year and other adjusting tax items per share (0.7) (1.4)
Adjusted basic earnings per share 23.8 20.7
Diluted earnings per share 13.8 9.9
Adjusting items before tax per share 10.2 11.8
Prior year and other adjusting tax items per share (0.6) (1.3)
Adjusted diluted earnings per share 23.4 20.4
Basic earnings per share is calculated by dividing the profit for the year
attributable to equity shareholders of the Company by the weighted average
number of shares in issue during the year, including vested but contingently
issuable shares and deferred shares but excluding those held in the Employee
Share Ownership Plan trust ('ESOP trust') which for the purpose of this
calculation are treated as cancelled.
For diluted earnings per share, the weighted average number of shares is
adjusted to assume conversion of all dilutive potential ordinary shares. These
represent share options granted in connection with employee share-based
payment plans that are yet to vest.
The calculation of basic and diluted earnings per share is based on the profit
for the year attributable to equity shareholders of the Company. A
reconciliation of statutory earnings to adjusted earnings is set out below:
£ millions 2025/26 2024/25
Earnings 245 185
Adjusting items before tax 182 221
Prior year and other adjusting tax items (11) (25)
Adjusted earnings 416 381
The weighted average number of shares in issue during the year, excluding
those held in the Employee Share Ownership Plan Trust ('ESOP trust'), is set
out below:
Weighted average number of shares (millions) 2025/26 2024/25
Basic 1,748 1,838
Effect of dilutive potential ordinary shares 28 29
Diluted 1,776 1,867
8. Dividends
£ millions 2025/26 2024/25
Dividends paid to equity shareholders of the Company
Ordinary interim dividend for the year ended 31 January 2026 of 3.80p per
share (year ended 31 January 2025: 3.80p per share)
66 69
Ordinary final dividend for the year ended 31 January 2025 of 8.60p per share
(year ended 31 January 2024: 8.60p per share)
152 159
218 228
The proposed dividend for the year ended 31 January 2026, subject to approval
by shareholders at the Annual General Meeting, is 12.40p per share, comprising
an interim dividend of 3.80p in respect of the six months ended 31 July 2025
and a final dividend of 8.60p. The total final dividend for the year ended 31
January 2026 based on the issued share capital as at 31 January 2026 is
expected to be c.£147m. The final amount may vary depending on share
movements between the balance sheet and payment date.
9. Post-employment benefits
2025/26 2024/25
£ millions UK Overseas Total UK Overseas Total
Net surplus/(deficit) in schemes at beginning of year 202 (101) 101 212 (113) 99
Current service cost (3) (7) (10) (3) (7) (10)
Past service (cost)/credit (4) - (4) 2 13 15
Administration costs (6) - (6) (5) - (5)
Net interest income/(expense) 11 (4) 7 10 (3) 7
Net remeasurement (losses)/gains (19) 12 (7) (14) 3 (11)
Contributions paid by employer - 5 5 - 5 5
Exchange differences - (3) (3) - 1 1
Net surplus/(deficit) in schemes at end of year 181 (98) 83 202 (101) 101
(1,679) (118) (1,797)
Present value of defined benefit obligations (1,711) (121) (1,832)
Fair value of scheme assets 1,860 20 1,880 1,913 20 1,933
Net surplus/(deficit) in schemes 181 (98) 83 202 (101) 101
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.
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, with the 2025 valuation currently ongoing. In
accordance with the scheme's Statement of Funding Principles, the Trustee and
the Company agreed to cease annual employer contributions for the period from
August 2022 to July 2025, and subsequently for the period from August 2025 to
July 2028. 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 obligations 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 are as follows:
Annual % rate 2025/26 2024/25
Discount rate 5.60 5.40
Rate of pension increases 2.95 3.05
On 25 July 2024, the Court of Appeal ruled in Virgin Media Ltd v NTL Pension
Trustees II Ltd (and others) that certain historic amendments to contracted
out defined benefit schemes are void where the statutory actuarial
confirmation was not obtained. On 5 June 2025, the Government announced plans
to legislate to allow retrospective actuarial confirmation of such
amendments. On 23 January 2026, the Financial Reporting Council issued
Technical Actuarial Guidance to support confirmations. No adjustment has been
recognised in these financial statements in respect of this matter. The Group
and the Trustee continue to monitor developments and will assess any
implications for the UK defined benefit scheme once further legislative detail
and supporting guidance are finalised.
10. Cash generated from operations
£ millions 2025/26 2024/25
Operating profit 469 407
Share of results of equity accounted investments 28 15
Depreciation and amortisation 667 656
Net impairment losses 119 198
Loss on disposal of property, plant and equipment and investment property 2 8
Gain on disposal of property assets held for sale (2) -
Loss on disposal of subsidiaries 31 3
Lease gains (4) -
Share-based compensation charge 27 20
(Increase)/decrease in inventories (1) 87
(Increase)/decrease in trade and other receivables (16) 63
Increase/(decrease) in trade and other payables 91 (50)
Movement in provisions 8 9
Movement in post-employment benefits 15 (5)
Cash generated from operations 1,434 1,411
11. Net debt
£ millions 2025/26 2024/25
Cash and cash equivalents 465 336
Cash and cash equivalents included within assets held for sale - 9
Bank overdrafts (3) (9)
Cash and cash equivalents and bank overdrafts (including cash and cash 462 336
equivalents held for sale)
Bank loans (1) (1)
Fixed term debt (99) (99)
Lease liabilities (2,238) (2,211)
Lease liabilities directly associated with assets held for sale - (42)
Net financing derivatives (2) 2
Net debt (including net debt held for sale) (1,878) (2,015)
£ millions 2025/26 2024/25
Net debt at beginning of year (2,015) (2,116)
Net increase/(decrease) in cash and cash equivalents and bank overdrafts 106 (11)
Arrangement fees paid 1 2
Net cash flow 107 (9)
Lease liabilities disposed 38 -
Movements in lease liabilities (1) 107
Exchange differences and other non-cash movements (7) 3
Net debt at end of year (1,878) (2,015)
12. Disposals
In the prior year, following the announcement that the Group had reached an
agreement to dispose of its interest in Brico Dépôt Romania, the business
was classified as held for sale. On 2 May 2025, the Group disposed of its 100%
interest in the Brico Dépôt Romania business to Altex Romania for a gross
consideration of £53m. Brico Dépôt Romania has not been classified as a
discontinued operation as it does not represent a major operation for the
Group.
Brico Dépôt Romania was included within the Other International aggregation
of operating segments.
The loss on disposal of £31m, which arises due to the transfer of cumulative
foreign exchange losses previously recorded in the translation reserve on
consolidation, as well as adjustments to the final proceeds received and net
assets disposed compared with the estimated values at 31 January 2025, is
analysed as follows:
£ millions 2025/26
Proceeds 53
Net assets disposed (see below) (68)
Transaction costs and warranties (2)
Loss on disposal before cumulative exchange losses (17)
Cumulative exchange losses transferred from translation reserve (14)
Loss on disposal (31)
The current year net cashflow effect of the disposal is analysed as follows:
£ millions 2025/26
Cash proceeds 53
Cash disposed (17)
Disposal and other costs (3)
Net disposal proceeds received 33
The major classes of assets and liabilities disposed are as follows:
£ millions 2025/26
Other intangible assets 2
Property, plant and equipment 38
Right-of-use assets 15
Inventories 94
Trade and other receivables 4
Cash and cash equivalents 17
Trade and other payables (61)
Lease liabilities (38)
Other liabilities (3)
Net assets disposed 68
13. 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.
Whilst the procedures that must be followed to resolve these types of tax
issues make it likely that it will be some years before the eventual outcome
is known, the Group does not currently consider the likelihood of adverse
outcomes in relation to these matters (other than those matters for which
liabilities have already been recorded) to be probable.
In October 2017, the European Commission opened a state aid investigation into
the Group Financing Exemption section of the UK Controlled Foreign Company
rules. While the Group had 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 constituted
illegal state aid. In September 2024, the European Court of Justice annulled
this decision, and, in March 2025, HMRC repaid the £64m tax and interest
previously assessed, plus an additional £5m payment of repayment interest.
14. Post balance sheet events
During the period since the balance sheet date, the Group purchased 20 million
of the Company's own shares for cancellation at a cost of £71m. This amount
was deducted from equity in 2025/26 as a result of an irrevocable buyback
agreement which was in place at 31 January 2026.
Section 5: Forward-looking statements
You are not to construe the content of this announcement as investment, legal
or tax advice and you should make your own evaluation of the Company and the
market. If you are in any doubt about the contents of this announcement or the
action you should take, you should consult a person authorised under the
Financial Services and Markets Act 2000 (as amended) (or if you are a person
outside the UK, otherwise duly qualified in your jurisdiction).
This announcement has been prepared in relation to the financial results for
the 12 months ended 31 January 2026. The financial information referenced in
this announcement is not audited and does not contain sufficient detail to
allow a full understanding of the results of the Group. Nothing in this
announcement should be construed as either an offer or invitation to sell or
any offering of securities or any invitation or inducement to any person to
underwrite, subscribe for or otherwise acquire securities in any company
within the Group or an invitation or inducement to engage in investment
activity under Section 21 of the Financial Services and Markets Act 2000 (as
amended) (or, otherwise under any other law, regulation or exchange rules in
any other applicable jurisdiction).
Certain information contained in this announcement may constitute
"forward-looking statements" (including within the meaning of the safe harbour
provisions of the United States Private Securities Litigation Reform Act of
1995), which can be identified by the use of terms such as "may", "will",
"would", "could", "should", "expect", "anticipate", "project", "estimate",
"intend", "continue", "target", "plan", "goal", "aim", forecast, or "believe"
(or the negatives thereof) or other variations thereon or comparable
terminology. These forward-looking statements are based on currently available
information and our current assumptions, expectations and projections about
future events. These forward-looking statements include all matters that are
not historical facts and include statements which look forward in time or
statements regarding the Company's intentions, beliefs or current expectations
and those of our Officers, Directors and employees concerning, amongst other
things, the Company's results of operations, financial condition, changes in
global or regional trade conditions (including a downturn in the retail or
financial services industries), competitive influences, changes in tax rates,
exchange rates or interest rates, changes to customer preferences, the state
of the housing and home improvement markets, share repurchases and dividends,
capital expenditure and capital allocation, liquidity, prospects, growth and
strategies, litigation or other proceedings to which we are subject, acts of
war or terrorism worldwide, work stoppages, slowdowns or strikes, public
health crises, outbreaks of contagious disease, environmental disruption or
political volatility. By their nature, forward-looking statements are not
guarantees of future performance and are subject to future events, risks and
uncertainties - many of which are beyond our control, dependent on actions of
third-parties, or currently unknown to us - as well as potentially inaccurate
assumptions that could cause actual events or results or actual performance of
the Group to differ materially from those reflected or contemplated in such
forward-looking statements. For further information regarding risks to
Kingfisher's business, please consult the risk management section of the
Company's Annual Report (as published). No representation, warranty or other
assurance is made as to the achievement or reasonableness of, and no reliance
should be placed on, such forward-looking statements.
This announcement has been prepared solely to provide additional information
to shareholders to assess the Group's strategies and the potential for those
strategies to succeed. It should not be relied upon by any other party or for
any other purpose. The forward-looking statements contained in this
announcement are made in good faith based on information available to the
Directors at the time of approval. However, such statements should be treated
with caution due to the inherent uncertainties - both economic and
business-related - underlying any forward-looking information. This
announcement has been prepared for the Group as a whole and therefore places
greater emphasis on matters significant to Kingfisher plc and its subsidiary
undertakings when viewed on a consolidated basis.
The forward-looking statements contained in this announcement speak only as of
the date of this announcement and the Company does not undertake any
obligation to update or revise any forward-looking statement to reflect any
new information, change in circumstances, or change in the Company's
expectations to reflect events or circumstances after the date of this
announcement or to reflect the occurrence of unanticipated events.
Section 6: Glossary
Alternative Performance Measures (APMs)
In the reporting of financial information, the Directors have adopted various
Alternative Performance Measures (APMs), also known as non-GAAP measures, of
historical or future financial performance, position or cash flows other than
those defined or specified under International Financial Reporting Standards
(IFRS). These measures are not defined by IFRS and therefore may not be
directly comparable with other companies' APMs, including those used by other
retailers. APMs should be considered in addition to, and are not intended to
be a substitute for, or superior to, IFRS measurements.
APM Closest equivalent IFRS measure Reconciling items to IFRS measure Definition and purpose
Adjusted basic earnings per share (EPS) Basic earnings per share A reconciliation of adjusted basic earnings per share is included in note 7 of Adjusted basic earnings per share represents profit after tax attributable to
the condensed financial statements (Section 4) the owners of the parent, before the impact of adjusting items (see definition
below), divided by the weighted average number of shares in issue during the
period. The exclusion of adjusting items helps provide an indication of the
Group's ongoing business performance.
Adjusted EBITDA Profit before taxation A reconciliation of Adjusted EBITDA is set out in the Financial Review Adjusted EBITDA (earnings before adjusting items, interest, tax, depreciation
(Section 3) and amortisation) is calculated as retail profit less central costs and before
depreciation and amortisation. This measure is widely used in calculating the
ratio of net debt to Adjusted EBITDA, and is used to reflect the Group's
leverage.
Adjusted effective tax rate Effective tax rate A reconciliation to the statutory effective tax rate is set out in the The adjusted effective tax rate is calculated as continuing income tax expense
Financial Review (Section 3) excluding tax adjustments in respect of prior years (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 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.
Adjusted pre-tax profit (PBT) Profit before taxation A reconciliation of adjusted PBT is set out in the Financial Review (Section Adjusted pre-tax profit is used to report the performance of the business at a
3) Group level. This is stated before adjusting items. The exclusion of adjusting
items helps provide an indication of the Group's ongoing business performance.
Adjusted post-tax profit Profit after tax A reconciliation of adjusted post-tax profit is set out in the Financial Adjusted post-tax profit is used to report the after-tax performance of the
Review (Section 3) and note 7 of the condensed financial statements (Section business at a Group level. This is stated before adjusting items. The
4) exclusion of adjusting items helps provide an indication of the Group's
ongoing after-tax business performance.
Adjusting items No direct equivalent Not applicable 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,
which the Group identifies as adjusting due to volatility which can arise
year-on-year based on future forecasts and assumptions; 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.
'Big-ticket' category sales No direct equivalent Not applicable 'Big-ticket' category sales comprise the sales from our kitchen, bathroom
& storage products. It is used as a measure of performance of our
relatively higher-value products.
Central costs No direct equivalent Not applicable Central costs principally comprise the costs of the Group's head office before
adjusting items. This helps provide an indication of the Group's ongoing head
office costs.
Constant currency No direct equivalent Not applicable Constant currency changes in total sales, LFL sales, gross profit, gross
margin %, retail profit, retail profit margin % and operating costs reflect
the year-on-year movements after translating the prior year comparatives at
the current year's average exchange rates. These are presented to eliminate
the effects of exchange rate fluctuations on the reported results.
Core category sales No direct equivalent Not applicable Core sales include the sales from non-seasonal products across all our
categories, other than 'big ticket' sales (i.e., kitchen, bathroom &
storage). It is used as a measure of our non-seasonal related performance,
which is the majority of Group sales.
Dividend cover No direct equivalent Not applicable Dividend cover represents the ratio of earnings to dividends. It is calculated
as adjusted basic earnings per share divided by the total (full year) dividend
per share. It is used as an indication of how sustainable dividend payments
are.
E-commerce sales penetration % No direct equivalent Refer to definition E-commerce sales penetration % represent total e-commerce sales as a
percentage of sales. For the purpose of this calculation only, sales are
adjusted to replace marketplace net sales with marketplace gross sales. It is
used to track the success of our e-commerce strategy.
First-party No direct equivalent Refer to definition First-party e-commerce sales are total first-party sales (excluding VAT)
e-commerce sales or 1P derived from online transactions, including click & collect (C&C).
This includes sales transacted on any device, however not sales through a call
centre. Sales (and related commissions/fees) from products supplied by
third-party e-commerce marketplace vendors are excluded. It is used to measure
the performance of our first-party e-commerce business across the Group.
Total No direct equivalent Refer to definition Total e-commerce sales are first-party e-commerce sales plus marketplace gross
e-commerce sales sales. References to digital or e-commerce sales growth relates to growth in
constant currency. It is used to measure the performance of all e-commerce
business (first-party and third-party) across the Group.
Free cash flow Net cash flows from operating activities A reconciliation of free cash flow is set out in the Financial Review (Section Free cash flow represents the cash generated from operations (excluding
3) adjusting items) less the amount spent on interest, tax and capital
expenditure during the year (excluding asset disposals). This provides a
measure of how much cash the business generates that can be used for
expansion, capital returns and other purposes.
Gross margin % No direct equivalent Refer to definition Gross profit represents sales from the supply of home improvement products and
services (excluding VAT), less the associated cost of those sales. Gross
margin % represents gross profit as a percentage of sales. It is a measure of
operating performance.
LFL sales Sales Refer to definition LFL (like-for-like) sales growth represents the constant currency,
year-on-year sales growth for stores that have been open for more than one
year, as well as other revenue streams which have more than one year of
comparative sales (e.g., marketplace net sales). It is a measure to reflect
the Group's performance on a comparable basis. Non-LFL sales represent the
difference between total sales and LFL sales, principally comprising sales for
stores open for less than one year.
Marketplace gross merchandise value (GMV) No direct equivalent Refer to definition Marketplace GMV is the total transaction value (including VAT) from the sale
of products supplied by third-party e-commerce marketplace vendors. It is used
to measure the performance of our e-commerce marketplace, and is the basis on
which our commissions from third-party vendors are determined. What is
recorded in revenue is the commission "take rate" which is c.10-15% of GMV.
Marketplace gross sales No direct equivalent Refer to definition Marketplace gross sales is the transaction value (excluding VAT) from the sale
of products supplied by third-party e-commerce marketplace vendors. Returned
and cancelled orders are excluded. It is used to measure the performance of
our e-commerce marketplace.
Marketplace net sales No direct equivalent Refer to definition Marketplace net sales are commissions (excluding VAT) earned on e-commerce
marketplace transactions, together with other service fees. This is included
within sales. Commissions are determined based on GMV. It is used to measure
the performance of our e-commerce marketplace.
Marketplace participation % No direct equivalent Refer to definition Marketplace participation % represents marketplace gross sales as a percentage
of total e-commerce sales. It is used to track the success of our marketplace
strategy and performance.
Net debt No direct equivalent A reconciliation of this measure is provided in note 11 of the condensed Net debt comprises lease liabilities, borrowings and financing derivatives
financial statements (Section 4) (excluding accrued interest), less cash and cash equivalents and short-term
deposits, including such balances classified as held for sale.
Net cash flow Net (decrease) / increase in cash and cash equivalents and bank overdrafts A reconciliation of net cash flow is set out in the Financial Review (Section Net cash flow is a measure to reflect the total movement in the net debt
2) and in note 11 of the condensed financial statements (Section 4) balance during the year excluding the movement in lease liabilities, exchange
differences and other non-cash movements.
Operating costs No direct equivalent Not applicable Operating costs represent gross profit less retail profit. This is the Group's
operating cost measure used to report the performance of our retail
businesses.
Own exclusive brands (OEB) sales No direct equivalent Refer to definition OEB refers to our portfolio of own exclusive brands across seven core
categories - surfaces & décor, tools & hardware, bathroom &
storage, kitchen, EPHC (electricals, plumbing, heating & cooling),
building & joinery, and outdoor.
OEB sales are sales of own exclusive brand products. It is used to measure the
performance of OEB across the Group.
Retail profit Profit before taxation A reconciliation of Group retail profit to profit before taxation is set out Retail profit is defined as continuing profit before tax before central costs,
in the Financial Review (Section 3) and note 3 of the condensed financial the Group's share of interest and tax of JVs and associates, adjusting items
statements (Section 4). There is no statutory equivalent to retail profit at a and net finance costs. This is the Group's operating profit measure used to
retail banner level report the performance of our retail businesses.
Retail profit margin % No direct equivalent Refer to definition Retail profit is the Group's operating profit measure used to report the
performance of our retail businesses and is separately defined above. Retail
profit margin % represents retail profit as a percentage of sales. It is a
measure of operating performance.
ROCE No direct equivalent Refer to definition ROCE (return on capital employed) is the post-tax retail profit less central
costs, excluding adjusting items, divided by capital employed excluding
historic goodwill, net debt and adjusting restructuring provisions. The
measure provides an indication of the ongoing returns from the capital
invested in the business. Capital employed is calculated as a two-point
average. The calculation excludes disposed businesses.
Seasonal category sales No direct equivalent Refer to definition Seasonal category sales include the sales from certain products within our
outdoor, electricals, plumbing, heating & cooling (EPHC) and surfaces
& décor categories. It is used as a measure of the performance of our
sales that are subject to the season we are in, or prevailing weather
conditions.
Trade sales No direct equivalent Refer to definition All sales made against a trade loyalty card or account (including B2B) or by
trade customers per Screwfix' customer database. Sales are inclusive of
adjustments for refunds, discounts, vouchers, and cashback.
Trade sales penetration No direct equivalent Refer to definition It represents total trade sales as a percentage of total sales. It is used to
track the success of our trade strategy.
Other Definitions
B2B customer is a trade customer engaged in constructing, improving, or
maintaining properties specifically for commercial purposes related to the
properties themselves - such as sale, rental, or ongoing maintenance to
support business continuity (e.g., facilities management). These activities
typically occur at a regional or national level.
B2B manager is a role dedicated to supporting B2B customers engage with our
trade proposition.
France consists of Castorama France and Brico Dépôt France.
GNFR (Goods Not For Resale) covers the procurement of all goods and services a
retailer consumes (including ocean freight, energy, media buying, cleaning,
and security).
Iberia consists of Brico Dépôt Spain and Brico Dépôt Portugal.
Other International consists of Iberia, Romania, 'Screwfix France &
Other', and Turkey (Koçtaş JV). 'Screwfix France & Other' consists of
the consolidated results of Screwfix France, NeedHelp, and results from
franchise and wholesale agreements. On 18 July 2024, we completed a divestment
of our c.80% equity interest in NeedHelp. On 2 May 2025 the Group completed
the divestment of its 100% equity interest in Brico Dépôt Romania for
proceeds of £53m. The Group recognised a £31m loss on disposal (included in
adjusting items). Please see note 4 and 12 of the condensed financial
statements for more details (Section 4).
SKU (Stock Keeping Unit) is defined as the number of individual variants of
products sold or remaining in stock. It is a distinct type of item for sale,
such as a product and all attributes associated with the item type that
distinguish it from others. These attributes could include, but are not
limited to, manufacturer, description, material, size, colour, packaging and
warranty terms.
Trade colleague refers to in-store customer advisor dedicated to supporting
all professional customers in-store, often signposted as such (e.g.
distinctive uniform, stationed in trade area).
Trade customer refers to someone who regularly purchases our products or
services to improve physical spaces used or owned by others - unlike Home
Improvers, who buy for the purpose of improving spaces they personally use.
Trade sales partner is a customer facing role dedicated to building strong,
1:1 relationships with a small number of high value / high potential value
customers where there is a mutually beneficial opportunity to grow their
engagement with our propositions. Typically at a local or regional level.
UK & Ireland consists of B&Q in the United Kingdom & Republic of
Ireland and Screwfix in the United Kingdom & Republic of Ireland.
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