Kingfisher names head of French unit as new CEO (updated)

Mr Bricolage SA

10/09/2014 11:31

* Veronique Laury to succeed Ian Cheshire as CEO by Jan. 
2015 
    * Cheshire, CEO since 2008, says it is right time to step 
down 
    * Posts flat first half pretax profit of 364 mln stg 
    * Strong Q1 offset by weaker Q2, August trade picked-up 
    * Shares rise up to 4.6 pct 
 
 (Adds CEO and analyst comment, share price) 
    By James Davey 
    LONDON, Sept 10 (Reuters) - Kingfisher  KGF.L , Europe's No. 
1 home improvements retailer, revealed the head of its French 
arm would replace Ian Cheshire as chief executive to steer the 
group through a period of major change. 
    Veronique Laury will become the fifth female CEO of 
Britain's top 100 companies. She will take the helm before the 
end of January 2015, Kingfisher said on Wednesday.  
    Laury, 49, will oversee the expansion of Screwfix and Brico 
Dépôt into new markets, the restructuring of B&Q and the 
integration of newly acquired Mr Bricolage  MBRI.PA . 
    She will also lead a five-year IT systems roll-out and 
complete the plan to develop common brands across the Anglo 
French group. 
    "It became clear that there needed to be a five-year 
commitment for the next phase and that, realistically from my 
point of view, 12 years (as CEO) was not going to be part of my 
plan," Cheshire, CEO since 2008, told reporters. 
    Laury has worked in the home improvement sector for 26 
years. She has worked in France, Kingfisher's biggest market, 
and in Britain. In her 11 years at Kingfisher she has held 
several roles at both Castorama, B&Q and at group level. She 
previously worked for French rivals Forestyl and Leroy Merlin. 
    The succession plan was announced as Kingfisher. No. 3 in 
the world behind U.S. groups Lowe's  LOW.N  and Home Depot 
 HD.N , posted flat first-half profit as a boost from good 
weather in the first quarter was followed by a much tougher 
second quarter. 
    Shares in the firm, down a quarter over the last year, rose 
up to 4.6 percent. They were up 12.4 pence at 319.8 pence at 
0905 GMT, valuing the business at 7.6 billion pounds. 
     
    LEGACY 
    Tony Shiret, analyst at Espirito Santo Investment Bank, said 
Cheshire's decision to leave was understandable "in the context 
of the re-boot in prospect over the next few years." 
    But he said Laury's elevation was a surprise and could have 
implications for Kevin O'Byrne, the managing director of B&Q, 
who was seen by some as the likely next CEO. 
    Cheshire, 55, said he had not come under any pressure from 
the board to step down. "There's no particular connection to 
other events," he said, adding Laury was "superbly qualified for 
the job." 
    Cheshire hoped his next business job would be linked with 
his interest in sustainability. 
    During his tenure Kingfisher's sales have grown 23 percent, 
adjusted pretax profit has doubled and the firm's market 
capitalisation has increased by 3.8 billion pounds or 112 
percent. 
    Cheshire also reduced net debt by 1.6 billion pounds, 
allowing the firm to return capital to shareholders for the 
first time. 
    Kingfisher made an underlying pretax profit of 364 million 
pounds ($586.8 million) in the 26 weeks to Aug. 2, ahead of 
analysts' average forecast of 360 million pounds, according to a 
company poll. 
    The firm experienced a sharp slowdown in its second quarter, 
particularly in France and Poland.  ID:nL6N0PZ1LD  
    First half sales rose 0.9 percent to 5.77 billion pounds and 
were up 1.8 percent on a like-for-like basis. An interim 
dividend of 3.15 pence, up 1 percent, is being paid. 
    "Whilst our French business saw an improvement in August we 
remain cautious about the economic backdrop," said Cheshire. 
    The CEO repeated his opposition to Scottish independence, 
saying a Yes vote in the Sept. 18 referendum would lead to 
higher prices for consumers and would make the country less 
attractive for investors. 
($1 = 0.6203 British Pounds) 
 
 (Reporting by James Davey; editing by Kate Holton and Elaine 
Hardcastle) 
 ((james.davey@thomsonreuters.com)(+44 20 7542 7674)(Reuters 
Messaging: james.davey.thomsonreuters.com@reuters.net)) 
 
Keywords: KINGFISHER CEO/