- Kingfisher
- 02 May 2024 17:20:52
Source: Sharecast
The company, which owns B&Q and Screwfix in the UK along with a host of other DIY brands across Europe, said full-year adjusted profit before tax is now likely to be in the region of £590m, down from a previous target of £634m and significantly lower than the £758m reported a year earlier. The group cited worsening conditions in Poland as well as continued struggles in France.
Not even the announcement of a £300m new share buyback programme could please the market, with shares down 11% at 209.9p in afternoon trade – its lowest level in nearly a year.
"Despite an accelerated transformation which was required due to the pandemic, Kingfisher remains a work in progress," said Richard Hunter, head of markets at Interactive Investor.
"The uncertain economic outlook in its main markets is a particular concern, where for example in France consumer confidence is at a 10-year low. The main UK and Ireland market clearly has its own challenges in what is likely still a rising interest rate environment, let alone the ferocity of competition which is central to retailing as a whole."
Other retailers were also struggling on the FTSE 100 on Tuesday, including JD Sports Fashion and B&M.
Hargreaves Lansdown jumped 6% after the savings and investment company reported a 50% surge in yearly profits to £402.7m, along with an 8% increase in assets under administration to £134bn.
Online grocer and technology company Ocado rose 2% after maintaining annual guidance following a rise in third-quarter retail revenues. The company, 50% owned by Marks & Spencer, said retail sales came in at £569.6m from £531m a year earlier, with a return to positive volume growth in the last month of the quarter.
Financial services stocks were in demand, with Phoenix Group rebounding after underwhelming the market with its half-year results on Monday. St James's Place, Lloyds and HSBC were also on the up.
FTSE 100 - Risers
Hargreaves Lansdown (HL.) 807.80p 5.59%
Marks & Spencer Group (MKS) 228.10p 2.52%
Ocado Group (OCDO) 806.20p 2.44%
Centrica (CNA) 172.95p 1.74%
Phoenix Group Holdings (PHNX) 534.20p 1.48%
Land Securities Group (LAND) 582.60p 1.39%
St James's Place (STJ) 846.80p 1.34%
Lloyds Banking Group (LLOY) 42.69p 1.27%
Smurfit Kappa Group (CDI) (SKG) 2,904.00p 1.26%
HSBC Holdings (HSBA) 630.80p 1.25%
FTSE 100 - Fallers
Kingfisher (KGF) 209.90p -10.91%
Burberry Group (BRBY) 2,062.00p -4.18%
Convatec Group (CTEC) 216.00p -2.26%
JD Sports Fashion (JD.) 133.40p -1.95%
Halma (HLMA) 2,069.00p -1.94%
BT Group (BT.A) 116.25p -1.65%
Antofagasta (ANTO) 1,431.00p -1.65%
B&M European Value Retail S.A. (DI) (BME) 555.80p -1.59%
Croda International (CRDA) 4,869.00p -1.58%
Diploma (DPLM) 3,070.00p -1.41%
