Interim Results - Part 2
Kingfisher PLC
20 September 2007
KINGFISHER PLC
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
For the half year ended 4 August 2007
Half year ended 4 August 2007 Half year ended 29 July 2006
Before Exceptional Total Before Exceptional Total
exceptional items exceptional items
£ millions Notes items (note 4) items (note 4)
Continuing operations:
Revenue 3 4,775.1 - 4,775.1 4,349.1 - 4,349.1
Cost of sales (3,147.4) - (3,147.4) (2,860.0) - (2,860.0)
Gross profit 1,627.7 - 1,627.7 1,489.1 - 1,489.1
Selling and distribution (1,191.0) - (1,191.0) (1,081.8) - (1,081.8)
expenses
Administrative expenses (235.8) (10.7) (246.5) (216.9) - (216.9)
Other income 10.6 47.9 58.5 11.2 42.0 53.2
Share of post-tax results of
joint ventures and associates 3 8.4 - 8.4 5.8 - 5.8
Operating profit 219.9 37.2 257.1 207.4 42.0 249.4
Analysed as:
Retail profit 3 240.1 32.2 272.3 231.5 42.0 273.5
Central costs (18.7) 5.0 (13.7) (18.2) - (18.2)
Amortisation of acquisition (0.1) - (0.1) (0.1) - (0.1)
intangibles
Share of interest and taxation (1.4) - (1.4) (5.8) - (5.8)
of joint ventures and
associates
Finance income 18.9 - 18.9 10.6 - 10.6
Finance costs (46.6) - (46.6) (36.9) - (36.9)
Net finance costs 5 (27.7) - (27.7) (26.3) - (26.3)
Profit before taxation 192.2 37.2 229.4 181.1 42.0 223.1
Income tax expense 6 (57.0) (13.8) (70.8) (62.4) 6.4 (56.0)
Profit for the period 135.2 23.4 158.6 118.7 48.4 167.1
Attributable to:
Equity shareholders of the 159.6 168.5
Company
Minority interests (1.0) (1.4)
158.6 167.1
Earnings per share 7
Basic 6.8p 7.2p
Diluted 6.8p 7.2p
Adjusted (basic) 5.7p 5.1p
The proposed interim dividend for the period ended 4 August 2007 is 3.85p per
share.
KINGFISHER PLC
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
For the half year ended 4 August 2007
Year ended 3 February 2007
Before Exceptional Total
exceptional items
£ millions Notes items (note 4)
Continuing operations:
Revenue 3 8,675.9 - 8,675.9
Cost of sales (5,623.7) - (5,623.7)
Gross profit 3,052.2 - 3,052.2
Selling and distribution expenses (2,207.3) - (2,207.3)
Administrative expenses (433.7) - (433.7)
Other income 23.7 49.5 73.2
Share of post-tax results of joint ventures and
associates 3 16.9 - 16.9
Operating profit 451.8 49.5 501.3
Analysed as:
Retail profit 3 503.7 49.5 553.2
Central costs (39.1) - (39.1)
Amortisation of acquisition intangibles (0.3) - (0.3)
Share of interest and taxation of joint ventures and
associates (12.5) - (12.5)
Finance income 24.8 - 24.8
Finance costs (75.6) - (75.6)
Net finance costs 5 (50.8) - (50.8)
Profit before taxation 401.0 49.5 450.5
Income tax expense 6 (119.4) 7.3 (112.1)
Profit for the year 281.6 56.8 338.4
Attributable to:
Equity shareholders of the Company 336.8
Minority interests 1.6
338.4
Earnings per share 7
Basic 14.4p
Diluted 14.4p
Adjusted (basic) 11.9p
KINGFISHER PLC
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE (UNAUDITED)
For the half year ended 4 August 2007
£ millions Notes Half year ended Half year ended Year ended
4 August 2007 29 July 2006 3 February 2007
Actuarial gains on post employment benefits 7.0 62.3 95.3
Currency translation differences 43.4 (15.0) (70.9)
Cash flow hedges
Fair value losses (5.3) (4.8) (9.1)
Losses/(gains) transferred to inventories 4.2 (1.1) 3.1
Tax on items recognised directly in equity (0.2) (17.0) (30.1)
Net income/(expense) recognised directly in 49.1 24.4 (11.7)
equity
Profit for the period 158.6 167.1 338.4
Total recognised income for the period 207.7 191.5 326.7
Attributable to:
Equity shareholders of the Company 11 208.5 192.9 325.1
Minority interests (0.8) (1.4) 1.6
207.7 191.5 326.7
KINGFISHER PLC
CONSOLIDATED BALANCE SHEET (UNAUDITED)
As at 4 August 2007
As at As at As at
£ millions Notes 4 August 2007 29 July 2006 3 February 2007
Non-current assets
Goodwill 2,552.5 2,555.3 2,551.5
Intangible assets 85.9 100.4 89.5
Property, plant and equipment 3,386.6 3,223.9 3,210.5
Investment property 29.9 14.2 29.4
Investments in joint ventures and associates 193.1 187.1 184.9
Deferred tax assets 23.8 - 30.2
Other receivables 36.2 45.3 46.6
6,308.0 6,126.2 6,142.6
Current assets
Inventories 1,773.5 1,474.1 1,531.0
Trade and other receivables 497.2 560.4 505.4
Current tax assets 1.0 4.8 14.6
Other investments 38.3 10.2 28.4
Cash and cash equivalents 370.4 576.3 394.5
2,680.4 2,625.8 2,473.9
Total assets 8,988.4 8,752.0 8,616.5
Current liabilities
Trade and other payables (2,318.5) (2,054.5) (1,958.3)
Current tax liabilities (102.0) (62.2) (86.9)
Borrowings (273.4) (249.8) (241.0)
Provisions (42.8) (60.1) (56.3)
(2,736.7) (2,426.6) (2,342.5)
Non-current liabilities
Other payables (50.8) (22.0) (50.8)
Deferred tax liabilities (270.4) (217.7) (262.7)
Borrowings (1,361.5) (1,480.5) (1,431.7)
Provisions (58.5) (83.2) (53.2)
Post employment benefits (32.8) (157.0) (54.6)
(1,774.0) (1,960.4) (1,853.0)
Total liabilities (4,510.7) (4,387.0) (4,195.5)
Net assets 4,477.7 4,365.0 4,421.0
Equity
Share capital 10 370.9 370.3 370.7
Share premium 10 2,187.4 2,180.9 2,185.2
Own shares held 10 (67.9) (90.4) (81.3)
Reserves 11 1,981.1 1,897.6 1,939.9
Minority interests 6.2 6.6 6.5
Total equity 4,477.7 4,365.0 4,421.0
The interim financial report was approved by the Board of Directors on 19
September 2007 and signed on its behalf by:
Gerry Murphy Duncan Tatton-Brown
Group Chief Executive Group Finance Director
KINGFISHER PLC
CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)
For the half year ended 4 August 2007
£ millions Notes Half year ended 4 Half year ended 29 Year ended
August 2007 July 2006 3 February 2007
Net cash flows from operating activities 12 389.9 427.4 559.4
Cash flows from investing activities
Purchase of subsidiary and business undertakings, (0.9) (0.7) (2.2)
net of cash acquired
Purchase of intangible assets (4.5) (12.2) (28.3)
Disposal of intangible assets - - 0.1
Purchase of property, plant and equipment and (278.3) (253.6) (438.6)
investment property
Disposal of property, plant and equipment and 86.1 210.2 251.0
investment property
Net purchase of other investments (7.9) (10.1) (29.3)
Disposal of other investments - 0.4 0.4
Dividends received from joint ventures and 1.5 0.8 5.1
associates
Net cash flows from investing activities (204.0) (65.2) (241.8)
Cash flows from financing activities
Interest received 9.6 6.6 18.5
Interest paid (31.8) (27.2) (70.3)
Interest element of finance lease rental payments (2.8) (2.6) (5.8)
Issue of Medium Term Notes and other fixed term - 252.4 252.4
debt
Net receipt/(repayment) of bank loans 35.9 (49.6) (133.3)
Capital element of finance lease rental payments (4.2) (4.2) (11.8)
Issue of share capital to equity shareholders of 2.4 4.9 10.8
the Company
Issue of share capital to minority interests 2.7 - 1.0
Disposal of own shares held 1.5 2.5 7.1
Dividends paid to equity shareholders of the (159.1) (158.5) (248.4)
Company
Dividends paid to minority interests (2.4) (0.8) (2.1)
Net cash flows from financing activities (148.2) 23.5 (181.9)
Net increase in cash and cash equivalents and bank 37.7 385.7 135.7
overdrafts
Cash and cash equivalents and bank overdrafts at 244.8 113.7 113.7
beginning of period
Exchange differences 1.1 2.6 (4.6)
Cash and cash equivalents and bank overdrafts at 283.6 502.0 244.8
end of period
KINGFISHER PLC
NOTES TO THE INTERIM FINANCIAL REPORT (UNAUDITED)
For the half year ended 4 August 2007
1. Basis of preparation
The interim financial report for the half year ended 4 August 2007 has been
prepared in accordance with the Disclosure and Transparency Rules of the
Financial Services Authority and with IAS 34 Interim Financial Reporting as
adopted by the European Union. This report should be read in conjunction with
the annual financial statements for the year ended 3 February 2007, which have
been prepared in accordance with IFRSs as adopted by the European Union.
The half year results are unaudited and were approved by the Board of Directors
on 19 September 2007.
The results for the year ended 3 February 2007 are based on full audited
accounts prepared in accordance with IFRSs as adopted by the European Union.
These accounts were filed with the Registrar of Companies and contain a report
of the auditors under section 240 of the Companies Act 1985, which does not
contain a statement under sections 237 (2) or (3) of the Companies Act 1985 and
is unqualified.
Use of adjusted measures
Kingfisher believes that retail profit, adjusted pre-tax profit, adjusted
post-tax profit and adjusted earnings per share provide additional useful
information on underlying trends to shareholders. These measures are used by
Kingfisher for internal performance analysis and incentive compensation
arrangements for employees. The terms 'retail profit', 'exceptional items' and '
adjusted' are not defined terms under IFRS and may therefore not be comparable
with similarly titled profit measures reported by other companies. It is not
intended to be a substitute for, or superior to, GAAP measurements of profit.
The term 'adjusted' refers to the relevant measure being reported excluding
exceptional items, financing fair value remeasurements and amortisation of
acquisition intangibles. Retail profit is defined as operating profit before
central costs (principally the costs of the Group's head office), exceptional
items and the Group's share of interest and taxation of joint ventures and
associates.
The separate reporting of non-recurring exceptional items, which are presented
as exceptional within their relevant income statement category, helps provide an
indication of the Group's underlying business performance. The principal items
which will be included as exceptional items are:
• non trading items included in operating profit such as profits and
losses on the disposal or closure of subsidiaries, associates and investments
which do not form part of the Group's trading activities;
• profits and losses on the disposal of properties; and
• the costs of significant restructuring and incremental acquisition
integration costs.
2. Accounting policies
The accounting policies adopted are consistent with those of the annual
financial statements for the year ended 3 February 2007, as described in those
financial statements.
The following new standards, amendments to standards or interpretations are
mandatory for the first time for the financial year ending 2 February 2008.
• IFRS 7 Financial Instruments: Disclosures, IAS 1 Amendments to
Capital Disclosures, and IFRS 4 Insurance Contracts revised implementation
guidance. As this interim report contains only condensed financial statements,
and as there are no material financial instrument related transactions in the
period, full IFRS 7 disclosures are not required at this stage. The full IFRS 7
disclosures, including the sensitivity analysis to market risk and capital
disclosures required by the amendment of IAS 1, will be given in the annual
financial statements.
• IFRIC 7 Applying the Restatement Approach under IAS 29 Financial
Reporting in Hyperinflationary Economies. This interpretation is not relevant
for the Group.
• IFRIC 8 Scope of IFRS 2. This interpretation has not had any impact
on the recognition of share-based payments in the Group.
• IFRIC 9 Reassessment of Embedded Derivatives. This interpretation has
not had any impact on the Group.
• IFRIC 10 Interim Financial Reporting and Impairment. This
interpretation has not had any impact on the Group.
3. Segmental analysis
Half year ended 4 August 2007
£ millions United France Poland Rest of Asia Total
Kingdom Europe
External revenue 2,321.0 1,614.4 330.8 281.8 227.1 4,775.1
Retail profit 85.0 104.7 45.5 15.9 (11.0) 240.1
Exceptional items before central costs 39.8 3.2 (0.1) - (10.7) 32.2
Amortisation of acquisition intangibles - - - - (0.1) (0.1)
Less: Share of operating profit of joint ventures and - (0.5) - (7.1) (2.2) (9.8)
associates
Segment result before joint ventures and associates 124.8 107.4 45.4 8.8 (24.0) 262.4
Share of post-tax results of joint ventures and - 0.3 - 6.6 1.5 8.4
associates
Segment result 124.8 107.7 45.4 15.4 (22.5) 270.8
Central costs (13.7)
Operating profit 257.1
Net finance costs (27.7)
Profit before taxation 229.4
Income tax expense (70.8)
Profit for the period 158.6
Half year ended 29 July 2006
£ millions United France Poland Rest of Asia Total
Kingdom Europe
External revenue 2,169.7 1,497.0 230.7 242.7 209.0 4,349.1
Retail profit 90.5 95.5 27.8 24.3 (6.6) 231.5
Exceptional items before central costs 43.3 0.3 (1.6) 0.1 (0.1) 42.0
Amortisation of acquisition intangibles - - - - (0.1) (0.1)
Less: Share of operating profit of joint ventures and - (0.5) - (8.2) (2.9) (11.6)
associates
Segment result before joint ventures and associates 133.8 95.3 26.2 16.2 (9.7) 261.8
Share of post-tax results of joint ventures and - 0.3 - 3.4 2.1 5.8
associates
Segment result 133.8 95.6 26.2 19.6 (7.6) 267.6
Central costs (18.2)
Operating profit 249.4
Net finance costs (26.3)
Profit before taxation 223.1
Income tax expense (56.0)
Profit for the period 167.1
Year ended 3 February 2007
£ millions United France Poland Rest of Asia Total
Kingdom Europe
External revenue 4,261.5 2,955.2 507.9 494.6 456.7 8,675.9
Retail profit 182.6 206.3 58.4 52.0 4.4 503.7
Exceptional items before central costs 50.5 (1.0) (0.5) - 0.5 49.5
Amortisation of acquisition intangibles - - - - (0.3) (0.3)
Less: Share of operating profit of joint ventures and - (0.8) - (23.2) (5.4) (29.4)
associates
Segment result before joint ventures and associates 233.1 204.5 57.9 28.8 (0.8) 523.5
Share of post-tax results of joint ventures and - 0.5 - 12.5 3.9 16.9
associates
Segment result 233.1 205.0 57.9 41.3 3.1 540.4
Central costs (39.1)
Operating profit 501.3
Net finance costs (50.8)
Profit before taxation 450.5
Income tax expense (112.1)
Profit for the year 338.4
The Group's primary reporting segments are geographic, with the Group operating
in four main geographical areas, being the UK, France, Rest of Europe and Asia.
The 'Rest of Europe' segment consists of B&Q Ireland, Castorama Poland,
Castorama Italy, Castorama Russia, Brico Depot Spain, Koctas and Hornbach.
Poland has been shown separately as it meets the reportable segment criteria as
prescribed by IAS 14 Segment Reporting. The 'Asia' segment consists of B&Q
China, B&Q Taiwan and B&Q Home in South Korea.
The Group's revenues, although not highly seasonal in nature, do increase over
the Easter period and during the summer months leading to slightly higher
revenues being recognised in the first half of the year.
4. Exceptional items
Half year ended Half year ended Year ended
£ millions 4 August 2007 28 January 2006 3 February 2007
Included within administrative expenses
Loss on closure of B&Q Home in South Korea (10.7) - -
Included within other income
Profit on disposal of properties 42.9 41.6 49.1
Profit on disposal of available for sale financial assets - 0.4 0.4
Recovery of loan receivable previously written off 5.0 - -
47.9 42.0 49.5
Exceptional items 37.2 42.0 49.5
Closure costs of £10.7m have been expensed in relation to the closure of B&Q
Home in South Korea.
The Group has recorded £42.9m exceptional profit on disposal of properties in
the current period, of which £40.0 million arose in connection with the sale and
leaseback of the Worksop Distribution Centre by B&Q UK.
The Group has recognised £5.0 million income in relation to the repayment of a
loan made to ProMarkt which had previously been written off as an exceptional
item.
5. Net finance costs
Half year ended Half year ended Year ended
£ millions 4 August 2007 29 July 2006 3 February 2007
Bank and other interest receivable 12.4 7.8 18.5
Net interest return on defined benefit schemes 6.5 2.8 6.3
Finance income 18.9 10.6 24.8
Bank and other interest payable (46.7) (35.1) (74.1)
Less amounts capitalised in the cost of qualifying assets 1.3 0.7 1.2
(45.4) (34.4) (72.9)
Finance lease charges (2.8) (2.6) (5.8)
Financing fair value remeasurements 2.7 2.7 4.7
Unwinding of discount on provisions (1.1) (2.6) (1.6)
Finance costs (46.6) (36.9) (75.6)
Net finance costs (27.7) (26.3) (50.8)
6. Income tax expense
Half year ended Half year ended Year ended
£ millions 4 August 2007 29 July 2006 3 February 2007
UK corporation tax
Current tax on profits for the period 14.5 16.9 30.2
Adjustments in respect of prior years 0.2 - (0.3)
14.7 16.9 29.9
Overseas tax
Current tax on profits for the period 43.9 42.9 80.7
Adjustments in respect of prior years 0.2 (0.1) (2.3)
44.1 42.8 78.4
Deferred tax
Current period 16.9 (3.7) 12.7
Adjustments in respect of prior years (0.4) - (8.9)
Adjustments in respect of changes in tax rates (4.5) - -
12.0 (3.7) 3.8
Income tax expense 70.8 56.0 112.1
The effective rate of tax on profit before exceptional items and excluding tax
adjustments in respect of prior years and changes in tax rates is 32.0% (2006:
34.5%), representing the best estimate of the effective rate for the full
financial year. The effective tax rate for the year ended 3 February 2007 was
32.0%. The tax charge on exceptional items for the current period is £13.8m
(2006: £6.4m credit). The tax credit on exceptional items for the year ended 3
February 2007 was £7.3m, of which £2.7m related to adjustments in respect of
prior years.
7. Earnings per share
Half year ended Half year ended Year ended
Pence 4 August 2007 29 July 2006 3 February 2007
Basic earnings per share 6.8 7.2 14.4
Effect of non-recurring costs
Exceptional items (1.6) (1.8) (2.1)
Tax on exceptional items 0.6 (0.2) (0.3)
Financing fair value remeasurements (0.1) (0.1) (0.2)
Tax on financing fair value remeasurements - - 0.1
Basic - adjusted earnings per share 5.7 5.1 11.9
Diluted earnings per share 6.8 7.2 14.4
Effect of non-recurring costs
Exceptional items (1.6) (1.8) (2.2)
Tax on exceptional items 0.6 (0.2) (0.3)
Financing fair value remeasurements (0.1) (0.1) (0.2)
Tax on financing fair value remeasurements - - 0.1
Diluted - adjusted earnings per share 5.7 5.1 11.8
The calculation of basic and diluted earnings per share is based on the profit
for the period attributable to equity shareholders of the Company of £159.6
million (2006: £168.5 million). For the year ended 3 February 2007, the profit
for the year attributable to equity shareholders of the Company was £336.8
million.
The weighted average number of shares in issue during the period, excluding
those held in the Employee Share Ownership Plan Trust (ESOP), was 2,340.7
million (2006: 2,331.8 million). The diluted weighted average number of shares
in issue during the period was 2,354.3 million (2006: 2,338.9 million). For the
year ended 3 February 2007, the weighted average number of shares in issue was
2,333.0 million and the diluted weighted average number of shares in issue was
2,343.8 million.
8. Dividends
Half year ended Half year ended Year ended
£ millions 4 August 2007 29 July 2006 3 February 2007
Dividends to equity shareholders of the Company
Final dividend for the year ended 28 January 2006 of 6.8p - 158.5 158.5
per share
Interim dividend for the year ended 3 February 2007 of 3.85p - - 89.9
per share
Final dividend for the year ended 3 February 2007 of 6.8p 159.1 - -
per share
159.1 158.5 248.4
The proposed interim dividend for the half year ended 4 August 2007 is 3.85p per share, amounting to £90.9m.
9. Capital expenditure
In the period, there were additions to intangible assets of £4.7m (2006:
£12.2m).
In the period, there were additions to property, plant and equipment and
investment property of £279.9m (2006: £222.1m). In the period there were
disposals of, property, plant and equipment and investment property of £41.9m
(2006: £164.3m).
Capital commitments contracted but not provided for by the Group amounted to
£35.1m.
10. Share capital, share premium and own shares held
Number of Share Share Own shares
ordinary shares capital premium held
millions £ millions £ millions £ millions
At 4 February 2007 2,359.0 370.7 2,185.2 (81.3)
Shares issued under share schemes 1.1 0.2 2.2 13.4
At 4 August 2007 2,360.1 370.9 2,187.4 (67.9)
At 29 January 2006 2,353.3 369.8 2,175.3 (95.1)
Shares issued under share schemes 2.9 0.5 5.6 4.7
At 29 July 2006 2,356.2 370.3 2,180.9 (90.4)
11. Reserves
Cash flow Translation Other Retained Total
hedge reserve reserves earnings
reserve
£ millions
At 4 February 2007 (3.0) 21.2 159.0 1,762.7 1,939.9
Actuarial gains on post employment benefits - - - 7.0 7.0
Currency translation differences - 43.2 - - 43.2
Cash flow hedges - fair value losses (5.3) - - - (5.3)
Cash flow hedges - losses transferred to inventories 4.2 - - - 4.2
Tax on items recognised directly in equity 0.2 - - (0.4) (0.2)
Net income recognised directly in equity (0.9) 43.2 - 6.6 48.9
Profit for the period - - - 159.6 159.6
Total recognised income for the period (0.9) 43.2 - 166.2 208.5
Share-based compensation charge - - - 3.7 3.7
Own shares disposed - - - (11.9) (11.9)
Dividends - - - (159.1) (159.1)
At 4 August 2007 (3.9) 64.4 159.0 1,761.6 1,981.1
At 29 January 2006 1.2 92.1 159.0 1,608.7 1,861.0
Actuarial gains on post employment benefits - - - 62.3 62.3
Currency translation differences - (15.0) - - (15.0)
Cash flow hedges - fair value losses (4.8) - - - (4.8)
Cash flow hedges - gains transferred to inventories (1.1) - - - (1.1)
Tax on items recognised directly in equity 1.8 - - (18.8) (17.0)
Net income recognised directly in equity (4.1) (15.0) - 43.5 24.4
Profit for the period - - - 168.5 168.5
Total recognised income for the period (4.1) (15.0) - 212.0 192.9
Share-based compensation charge - - - 5.5 5.5
Share-based compensation - shares awarded - - - (0.8) (0.8)
Own shares disposed - - - (2.5) (2.5)
Dividends - - - (158.5) (158.5)
At 29 July 2006 (2.9) 77.1 159.0 1,664.4 1,897.6
12. Cash flows from operating activities
Half year ended Half year ended Year ended
£ millions 4 August 2007 29 July 2006 3 February 2007
Operating profit 257.1 249.4 501.3
Depreciation and amortisation 117.0 95.3 207.0
Impairment losses - - 1.3
Share-based compensation charge 3.7 5.5 9.0
Share of post-tax results of joint ventures and associates (8.4) (5.8) (16.9)
Profit on disposal of property, plant and equipment (38.5) (37.6) (43.9)
Loss on disposal of intangible assets - - 5.7
Profit on disposal of available for sale financial assets - (0.4) (0.4)
Increase in inventories (222.3) (123.1) (215.0)
Decrease in trade and other receivables 38.6 3.7 44.0
Increase in trade and other payables 290.8 331.4 295.1
Decrease in working capital 107.1 212.0 124.1
Decrease in post employment benefits (8.9) (17.4) (82.5)
Decrease in provisions (9.2) (14.7) (47.0)
Cash generated by operations 419.9 486.3 657.7
Income tax paid (30.0) (58.9) (98.3)
Net cash flows from operating activities 389.9 427.4 559.4
13. Net debt
Net debt comprises the Group's borrowings, interest rate and cross currency
swaps that hedge those borrowings (excluding accrued interest), bank overdrafts
and obligations under finance leases, less cash and cash equivalents and current
other investments.
Half year ended Half year ended Year ended
£ millions 4 August 2007 29 July 2006 3 February 2007
Cash and cash equivalents 370.4 576.3 394.5
Current other investments 38.3 10.2 28.4
Bank overdrafts (86.8) (74.3) (149.7)
Bank loans (183.1) (233.5) (146.8)
Medium Term Notes and other fixed term debt (1,295.7) (1,350.7) (1,306.6)
Interest rate and cross currency swaps (excluding accrued (63.7) (9.9) (44.0)
interest)
Finance leases (69.3) (71.8) (69.6)
Net debt (1,289.9) (1,153.7) (1,293.8)
Half year ended Half year ended Year ended
£ millions 4 August 2007 29 July 2006 3 February 2007
Net debt at beginning of period (1,293.8) (1,355.2) (1,355.2)
Net increase in cash and cash equivalents and bank 37.7 385.7 135.7
overdrafts
Net increase in current other investments 8.3 10.1 29.3
Amortisation of issue costs of debt (0.4) (0.4) (0.9)
Net increase in debt and lease financing (35.0) (198.2) (107.3)
Exchange differences and fair value adjustments on (6.7) 4.3 4.6
financial instruments
Net debt at end of period (1,289.9) (1,153.7) (1,293.8)
During the half year ended 29 July 2006, the Group issued $466.5 million (£252.4
million) of fixed term debt through the US Private Placement market. The
proceeds were swapped to Sterling at floating interest rates.
14. Acquisitions
There were no significant acquisitions in the current or prior half year
periods.
15. Contingent liabilities
Kingfisher plc has an obligation to provide a bank guarantee for £50.0m to the
liquidators of Kingfisher International France Limited in the event that
Kingfisher plc's credit rating falls below 'BBB'. The obligation arises from an
indemnity provided in June 2003 as a result of the demerger of Kesa Electricals.
In addition, the Group has arranged for certain bank guarantees to be provided
to third parties in the ordinary course of business.
16. Related party transactions
The Group's significant related parties are its associates and joint ventures as
disclosed in the Kingfisher plc Annual Report for 3 February 2007. There were no
material related party transactions in the period or prior half year period.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors confirm that this condensed set of financial statements has been
prepared in accordance with IAS 34 as adopted by the European Union, and that
the interim management report herein includes a fair review of the information
required by DTR 4.2.7 and DTR 4.2.8.
The Directors of Kingfisher plc are listed in the Kingfisher plc Annual Report
for 3 February 2007. There have been no changes in the period.
By order of the Board
Gerry Murphy
Group Chief Executive
19 September 2007
Duncan Tatton-Brown
Group Finance Director
19 September 2007
INDEPENDENT REVIEW REPORT TO KINGFISHER PLC
Introduction
We have been instructed by the Company to review the financial information for
the half year ended 4 August 2007 which comprises the consolidated income
statement, the consolidated statement of recognised income and expense, the
consolidated balance sheet, the consolidated cash flow statement and the related
notes. We have read the other information contained in the interim financial
report and considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.
Directors' responsibilities
The interim financial report is the responsibility of, and has been approved by,
the Directors. The Directors are responsible for preparing the interim financial
report in accordance with the Disclosure and Transparency Rules of the United
Kingdom's Financial Services Authority.
As disclosed in note 1, the annual financial statements of Kingfisher plc are
prepared in accordance with IFRSs as adopted by the European Union. The
financial information included in this interim financial report has been
prepared in accordance with International Accounting Standard 34, 'Interim
Financial Reporting', as adopted by the European Union.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of management and applying analytical
procedures to the financial information and underlying financial data and, based
thereon, assessing whether the disclosed accounting policies have been applied.
A review excludes audit procedures such as tests of controls and verification of
assets, liabilities and transactions. It is substantially less in scope than an
audit and therefore provides a lower level of assurance. Accordingly we do not
express an audit opinion on the financial information. This report, including
the conclusion, has been prepared for and only for the Company for the purpose
of the Disclosure and Transparency Rules of the Financial Services Authority and
for no other purpose. We do not, in producing this report, accept or assume
responsibility for any other purpose or to any other person to whom this report
is shown or into whose hands it may come save where expressly agreed by our
prior consent in writing.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the half year ended
4 August 2007.
PricewaterhouseCoopers LLP
Chartered Accountants
London
19 September 2007
SHAREHOLDER INFORMATION
Copies of the results will be sent to shareholders on 10 October 2007 and
additional copies will be available from Kingfisher plc, 3 Sheldon Square,
Paddington, London W2 6PX.
The results can also be accessed on line at www.kingfisher.com as well as other
shareholder information.
Timetable of events
3 October 2007 Ex-dividend date for interim dividend
5 October 2007 Record date for interim dividend
26 October 2007 Final date for receipt of Drip Mandate Forms by Registrars
16 November 2007 Date for payment of interim cash dividend
23 November 2007 Trade settlement date for the interim Drip dividend
If shareholders wish to elect for the Dividend Reinvestment Plan (Drip), and
have not already done so, for the forthcoming interim dividend, a letter or Drip
Mandate Form must be received by Kingfisher's Registrars, Computershare Investor
Services PLC, by 26 October 2007.
Copies of the Terms and Conditions of the Drip can be obtained from Kingfisher's
Registrars at the address below, by calling 0870 702 0129 or online at
www.kingfisher.com.
Computershare Investor Services PLC
PO Box 82
The Pavilions
Bridgwater Road
Bristol
BS99 7NH
This information is provided by RNS
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