The Investment column: Kingfisher
Thursday 09 December 1999
Like-for-like sales in the 13 weeks to October were up by 5.2 per cent, a figure many retailers would kill for nowadays. The figure rises to 6.4 per cent on inclusion of new businesses such as Castorama, the French DIY operation merged with B&Q, and Screwfix, the DIY distribution business.
The City has been bearish on UK retailers but may have forgotten Kingfisher's major exposure to continental Europe where the consumer outlook is improving. So while B&Q's underling sales rise of 8 per cent could have been factored in, a similar rise by Castorama was a pleasant surprise.
The electrical chains are also performing well. Comet saw like-for-like sales rise by more than 9 per cent, to be boosted by eight new stores next year. Darty looks solid in France and Kingfisher's chains in Germany, Belgium and Holland place it ahead of rival Dixons, which has only just made a Scandinavian acquisition.
Kingfisher also enjoys a stake in Libertysurf, the French Internet service provider. Deutsche Bank estimates that could be worth pounds 1bn.
On the home front, Woolworths' sales were held back due to the lack of a blockbuster video release to match last year's Titanic. But the first two Big W hypermarkets are fulfilling expectations and the fledgling chain will expand to eight next year. It all adds up to a strong story which is yet to be fully reflected in the share price, up 46p at 608.5p yesterday, a long way off its 930p peak in the spring. On SG Securities' full-year profit forecast of pounds 780m, the shares trade on a forward multiple of 19. Wal-Mart's takeover of Asda remains a threat, but the shares are still good value.
- 1 Pope Francis issues top 10 tips for happiness
- 2 Disney heiress Abigail disowns her share of family profits in West Bank company
- 3 The secret report that helps Israel hide facts
- 4 Now diplomacy has failed, boycotting Israel might be the only way we can protect the people of Gaza
- 5 Israel's propaganda machine is finally starting to misfire
Russell Brand accuses FOX News anchor Sean Hannity of terrorism after aggressive Israel-Gaza debate
Pope Francis issues top 10 tips for happiness
Justin Bieber posts Instagram photo of a crying Orlando Bloom after Ibiza fight 'over Miranda Kerr'
Disney heiress Abigail disowns her share of family profits in West Bank company
Air Algerie AH5017 crash: Jet fell 30,000 feet in three minutes ‘due to violent storm’
The secret report that helps Israel hide facts
Land for gas: Merkel and Putin discussed secret deal could end Ukraine crisis
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
- < Previous
- Next >
iJobs Money & Business
£28000 - £32000 per annum + benefits: Ashdown Group: Training Programme Manage...
£20000 - £24000 per annum: Harrington Starr: A leading provider of web based m...
£28000 - £32000 per annum: Ashdown Group: Secretary (Sales Team Support) - Mat...
Competitive (DOE): Guru Careers: We are looking for an Assistant Management Ac...