The essential news source for the home improvement industry ADHESIVES & SEALANTS
31 MARCH 2017 The category shows its sticking power p8
INSIDE THIS WEEK NEWS EXTRA
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Discount retailer 99p Stores goes into administration
High street discount chain 99p Stores has been put into administration by its owner Poundland, with a total of 60 stores across the country closing down. The group was bought by Poundland back in 2015 for £55m, with bosses at Poundland admitting it had “difficulties digesting” the portfolio of stores
following the purchase. Around 250 of the stores transferred to Poundland leases, with the remaining 60 staying on the 99p Stores leases under a subsidiary company. It is these stores which are now closing.
Alix Partners has been appointed as adminstrator. A statement from Poundland said: ““We can confirm that the
separate 99p Stores company has entered administration. “The administrator is Alix Partners and they will be responsible for communication regarding the company and its liabilities.
“As we’ve always said, it’s no
secret the previous management of Poundland had difficulties digesting its 99p stores acquisition.
The administration of 99p Stores will “have no impact on Poundland” according to the retailer
“However, we’ve largely completed the store closure programme that addressed the remaining overlaps from that 99p acquisition - importantly, with very limited impact on jobs because we have stores located near to those we’re closing. “The administration has no impact on Poundland itself which, of course, is a robust,
thriving business serving over seven million shoppers a week.” Poundland was recently taken over by South African retailer Steinhoff for £597m. Steinhoff made waves in the home improvement industry last year when it entered a bidding war with Sainsbury’s to buy out Home Retail Group’s Argos, ultimately backing out at the eleventh hour.
Kingfisher announces profit rise but sales decline at B&Q
B&Q parent group Kingfisher has announced a significant rise in its underlying and adjusted pre-tax profits, up 14.7% and 8.3% respectively, for the year to January 31, 2017. Adjusted sales were up 8.7%
across the group, bringing the total to £11,225m. Retail profit grew by 13.5% and the underlying basis EPS was up 17.7%. Total adjusted sales in the UK and Ireland were up by 2.4%. Statutory pre-tax profits stood at £759m for the year, up 48.2% on the previous year, and post- tax profit stood at £610m, a large rise copmared with the
previous year’s £412m. B&Q’s sales declined, however, by 3.3% to £3,680m due to store closures. Like-for-likes increased by 3.5%, of which 2.6% was a result from sales transference from the closed stores. Screwfix sales were up by 23.2%, a LfL increase of 13.8%, bringing the total to £1,299m. This was driven by strong digital growth as well as growth from the specialist trade desks for electricians and plumbers. Screwfix opened 60 new outlets during the year, bringing its total to 517. The group’s 14.7% growth
in underlying pre-tax profit was driven by like-for-like sales increases in the UK and Poland, as well as £30m Goods Not for Resale benefits being delivered earlier than planned. The group reported that it had “delivered key Year 1 One Kingfisher strategic milestones” and was well-placed for years two and three. The group is now expecting to deliver a £500m sustainable EBIT uplift by the end of the 2020/21 financial year “over and above business as usual.” It is also projecting a capital return of £600m by the end of the 2018/19 financial year.
Chief executive officer
Veronique Laury said: “It has been a very productive and important year, a year which has again delivered sales and profit growth. I am really pleased that our performance has been achieved alongside delivering the key first year strategic milestones of our ambitious five year transformation plan, based on creating a unified company where customer needs come first. We have learned a lot and are aware of the challenges. We are well set up for next year and beyond as the level of activity increases.”
“It has been a productive and important year for Kingfisher” - Veronique Laury, CEO
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