Kingfisher, owner of B&Q and Screwfix, has released its final results for the year ended 31 January 2021.

In its report, the group registers a strong financial performance driven by a new strategy, its agility in response to the COVID crisis, and a strong demand for home improvement. The directors are also optimistic for the future, seeing market drivers and new trends as offering longer-term growth opportunities for the business.

The UK & Ireland performed strongly in December, with growth at Screwfix accelerating from November. In January, despite further lockdown restrictions, sales growth remained strong for most of our retail banners.

In 2020/21, like-for-like sales for the whole Group, which operates businesses in several European countries, were up 7.1%, (to £12.3 billion) driven by strong trading and reduced disruption in the second half of the year. In particular, sales were up 15.5% in Q4 20/21. UK & Ireland sales increased by 12.3% (LFL +10.7%) to £5,743 million. Retail profit increased by 36.3% to £681 million (a margin of 11.9%), with a strong performance from both B&Q and Screwfix. 

E-commerce sales for the Group were also buoyant, up 158%, now representing 18% of the total Group sales (FY 19/20: 8%). Click & collect sales were up 226% (78% of Group e-commerce sales (FY 19/20: 62%))

As result pre-tax profits increased by 634% from £103 million in 2019/20 to £756 million. 

Screwfix total sales increased by 11.4% (LFL +6.6%) to £2,036 million, with net space growth of nearly five percentage points. E-commerce sales grew by 165%, representing 78% of total sales (FY 19/20: 33% of total sales). Screwfix’s stores in the Republic of Ireland continue to trade well (first store opened in December 2019). Screwfix orders were taken exclusively online from late March to late July 2020, with all stores closed for in-store browsing and purchasing during that period.

In FY 20/21, Screwfix opened 36 net new stores (including eight in the Republic of Ireland). The total number of stores at year-end is 722, including 12 in the Republic of Ireland. The business has a longer-term target of over 900 stores in both the UK and Republic of Ireland (versus previous target of 800 in the UK). In H1 21/22 the business will commence its broader international expansion plans, initially through an ‘online-first’ approach, similar to that applied to the Republic of Ireland.

B&Q total sales increased by 12.8% to £3,707 million. LFL sales increased by 13.0% with building & joinery the strongest performing category, followed by outdoor and surfaces & décor. LFL sales of weather-related categories increased by c.22% while sales of non-weather-related categories, including showroom, increased by c.10%. B&Q’s e-commerce sales grew strongly in FY 20/21, increasing by 117% and representing 10% of total sales (FY 19/20: 5% of total sales).

In FY 21/22 we plan to relaunch TradePoint, B&Q’s trade-focused banner. The business continues to be a significant part of B&Q at c.19% of its sales, with sales growth of c.11% in FY 20/21. Work is ongoing to address gaps in ranges, and to improve the digital customer journey and services proposition. Engagement from trade customers has been high in FY 20/21, with TradePoint’s H2 20/21 LFL sales growing at over 20%.  

B&Q opened five new stores in FY 20/21, including three compact stores.

Thierry Garnier, Chief Executive Officer, said: “The dedication and commitment of our 80,000 colleagues has enabled us to make substantial strategic, operational and financial progress this year. Kingfisher is coming out of the COVID crisis as a stronger business, with an improved competitive position in all key markets, strong new customer growth and a step change in digital adoption. I would like to express my personal thanks to all our teams for their incredible efforts in the most testing of circumstances.

“We rolled out our ‘Powered by Kingfisher’ strategy without delay and even accelerated in many areas. Our distinct retail banners are now empowered and much more agile, which enabled them to react quickly in what was a volatile situation last year, supported by the scale, strength and expertise of the Kingfisher Group.

“We continued to ‘focus and fix’ key aspects of the business. We have now finalised the fundamental reorganisation of our commercial operating model, and introduced new trading approaches tailored to local markets. In France, our performance and competitive position have significantly improved as we’ve addressed operational issues and strengthened our teams and ranges. There is still work to do, but our progress and the overall engagement of our teams are clear to see.

“We are making significant progress with our longer-term strategic goals. In the area of e-commerce, by rapidly implementing changes in our stores, IT systems and supply chain, we have met the demand of our customers for speed and convenience. This approach, supported by our model of placing stores at the centre, has driven rapid click & collect growth along with faster home delivery services. Group e-commerce sales grew by 158%, reaching 18% of our sales. We have also accelerated the pace of development in the areas of mobile, services, store concepts and partnerships, and have many ongoing and exciting innovations in progress.

“Throughout this year, we have remained committed to making the right decisions for our colleagues, customers, and our communities. This has included upgrading our safe operating standards, ring-fencing and donating PPE, supporting our colleagues and rewarding frontline staff, returning government support, and developing our plans to help tackle climate change and deforestation.

“Current trading remains positive and, while visibility is limited for the year as a whole, we are confident of continued outperformance of our wider markets. The COVID crisis has established new longer-term trends that are clearly supportive for our industry – including more working from home, the renewed importance of the home as a ‘hub’, and the development of a new generation of DIY’ers – and we expect these to endure. With our strategic progress, we are well positioned to capitalise on these new and positive market trends.”