TIDMKGF
RNS Number : 6769H
Kingfisher PLC
07 December 2020
Kingfisher plc
Kingfisher to return UK and Republic of Ireland business rates
relief
7 December 2020: The Board of Kingfisher plc ('Company', 'Group'
or 'Kingfisher') announces today its intention to return in full
the UK and Republic of Ireland business rates relief received as a
result of the COVID-19 crisis. Earlier this year the Company repaid
in full the amount received of GBP23 million under the UK
Government's Job Retention Scheme.
Throughout the crisis, Kingfisher has operated under a clear set
of priorities - to serve our customers as a retailer of essential
goods, to look after our colleagues as a responsible employer, to
provide support to the governments and communities in which we
operate, and to protect our business for the long term.
At the outset of the first national lockdown earlier this year,
despite being recognised as a retailer of essential goods, we took
the initial decision to close our B&Q and Screwfix stores in
the UK for in-store browsing and purchasing. While this resulted in
a significant adverse impact to our trading performance, the
temporary closures enabled us to protect our colleagues and
customers, limit the spread of the virus, and reconfigure our
retail space and processes to ensure the safe reopening of our
stores. Kingfisher benefited from, and was thankful for, the
financial support measures it received from the UK and Irish
governments which, together with our own measures to reduce costs
and preserve cash, helped us to protect jobs and limit the
financial impact of COVID-19, in the face of significant
uncertainty.
Since reopening our stores in late April and early May, our
sales performance has been strong, supported by higher demand for
home improvement across our markets and by the significant progress
that the business has made under our 'Powered by Kingfisher'
strategy. While uncertainty remains in the markets in which we
operate, we are confident that we can address the key risks we
face, and that as our strategy is delivered we will be able to
continue to grow our business.
We have been active in supporting our communities and
governments and we have already repaid the full amount received of
GBP23 million under the UK Government's Job Retention Scheme. Given
the resilience of our business, the Board has now decided to return
the UK and Republic of Ireland business rates relief. Kingfisher's
total annual business rates bill eligible for this relief is
approximately GBP130 million, of which c.GBP110 million falls in FY
20/21 and the balance in FY 21/22.
Following this decision, we now anticipate that FY 20/21
adjusted profit before tax will include c.GBP85 million of
non-recurring cost savings (previous guidance: c.GBP175 million),
net of any one-off COVID-related costs.
Thierry Garnier, Chief Executive Officer, commented:
"Government support through this crisis has been invaluable for
many companies, including ours.
"We also took swift action within our business in response to
the pandemic to protect Kingfisher. We rapidly adapted our
operations, both online and in-store, to fulfil the essential needs
of our customers. We made significant investments to ensure the
safety of our customers and teams, taking important steps to
strengthen our balance sheet and limit the financial impact of
COVID-19.
"These actions, combined with the roll-out of our new strategy
and the hard work of our colleagues and teams, have delivered
growth throughout the Group and led to the hiring of 3,500
additional colleagues. Given this resilience, and our commitment to
support our communities, we believe that returning the UK and Irish
business rates relief in full is the right thing to do."
Andy Cosslett, Chairman of Kingfisher, commented:
"Kingfisher is in a sound financial position with continuing
positive trading momentum, due to both strong consumer demand and
the benefits of our strategy. We are pleased that we are in a
position to do this, and hope that the money can now be redeployed
by the government and local authorities where it is needed
most."
Contacts
Tel: Email:
Investor Relations +44 (0) 20 7644 investorenquiries@kingfisher.com
1082
Media Relations +44 (0) 20 7644 corpcomms@kingfisher.com
1030
Teneo +44 (0) 20 7420 Kfteam@teneo.com
3184
About Kingfisher plc
Kingfisher plc is an international home improvement company with
approximately 1,370 stores, supported by a team of 78,000
colleagues. We operate in eight countries across Europe under
retail banners including B&Q, Castorama, Brico Dépôt, Screwfix,
TradePoint and Koçta . We offer home improvement products and
services to consumers and trade professionals who shop in our
stores and via our e-commerce channels. At Kingfisher, our purpose
is to help make better homes accessible for everyone.
Forward-looking statements
You are not to construe the content of this announcement as
investment, legal or tax advice and you should make your own
evaluation of the Company and the market. If you are in any doubt
about the contents of this announcement or the action you should
take, you should consult a person authorised under the Financial
Services and Markets Act 2000 (as amended) (or if you are a person
outside the UK, otherwise duly qualified in your jurisdiction).
The financial information referenced in this announcement is not
audited and does not contain sufficient detail to allow a full
understanding of the results of the Group. Nothing in this
announcement should be construed as either an offer or invitation
to sell or any offering of securities or any invitation or
inducement to any person to underwrite, subscribe for or otherwise
acquire securities in any company within the Group or an invitation
or inducement to engage in investment activity under section 21 of
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our Officers, Directors and employees concerning, amongst other
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to Kingfisher's business, please consult the risk management
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(END) Dow Jones Newswires
December 07, 2020 02:00 ET (07:00 GMT)
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