FTSE 100 Live: B&Q owner Kingfisher results, public sector net borrowing

Kingfisher, the company that owns home improvement stores B&Q and Screwfix, has raised its profit forecast despite a decline in sales at B&Q. The FTSE 100 retailer now anticipates a pre-tax profit of £595m to £635m, up from the previous estimate of £565m to £625m. This improvement is attributed to the group's focus on "trade" customers, including builders, plumbers, and electricians.

The six months to July saw a pre-tax profit of £400m, marking an 18% increase from the same period last year. While like-for-like sales across the group grew by 1%, B&Q experienced a 2.9% drop in like-for-like sales. This decline was primarily due to a 5% decrease in sales of high-value items like kitchens and bathrooms, as well as a surge in online shopping due to summer heatwaves.

Kingfisher has initiated a thorough review of its bathroom product lines, which have reportedly underperformed in the current market conditions. Despite these challenges, B&Q's trade-only store has seen resilient sales, with a 0.2% increase to £490m. The company aims to achieve £5bn in trade sales across its retailers.

Sales at Screwfix surged by 5.6% in the six months to July, driven by a 7.3% increase in seasonal ranges. The company also reported a 2.2% rise in sales in its Polish market and a 2.3% decrease in France. Kingfisher's CEO, Thierry Garnier, highlighted the group's strategic progress and new growth opportunities, particularly in e-commerce and trade customers, as reasons to upgrade the profit guidance.