Roll out the biscuit barrel, Duchy marks its 21st Page 3
Screwfix nails home growth for Kingfisher BY JOHN COLLINGRIDGE wdbusiness@bepp.co.uk Britain’s July heatwave helped DIY chain B&Q recover from the freezing spring as sales of hosepipes and barbecues soared along with the temperature. Parent Kingfisher cited a “tale of two quarters”, with sales of outdoor goods at B&Q falling 11 per cent in February to April, but bouncing back 17 per cent between May and early August. But it was all good news for Kingfisher’s Yeovil-based Screwfix business, which saw underlying sales increase by
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k to g 3.6 per cent and total sales soar 14.6 per cent to £313 million, defying a tough market for small tradesmen. Kingfisher is now expanding Screwfix, which has come a long way since it started as the Woodscrew Supply Company in 1979 – its first catalogue featuring just a single page devoted to screws. Volatile weather resulted in a 1.6 per cent dip in Kingfisher’s adjusted pre-tax profits to £365 million for the 26 weeks to the start of August, but its sales grew 4.3 per cent to £5.7 billion on continued
expansion and flattering currency swings. Kingfisher, which also owns Castorama and Brico Depot in France, said consumers remained nervous about spending across its major markets. July’s heatwave compared with a wet summer in 2012, and saw sales of barbecues leap 26 per cent and charcoal soar 48 per cent in the second quarter. Watering equipment surged 69 per cent and sales of outdoor plant pots rose by a third.But sales of indoor paint dropped 10 per cent in the quarter as households stayed outdoors. B&Q’s DIY sales fell one per cent during the half, compared with a market which advanced two per cent. The company said: “It was a tale of two quarters with the coldest weather for 50 years in March and a July heatwave.” B&Q is “rightsizing” by hiving off surplus space in its stores to companies such as supermarkets. But it is expanding Screwfix. It has launched a Screwfix pilot in Germany, with four outlets due to open next summer, and the brand’s website has been rolled out to more than 20 European countries. Kingfisher has more than 650 B&Q and Screwfix stores in the UK and Ireland and plans 47 new ones in its second half, including 42 in the UK – most of them Screwfix. Chief executive Ian Cheshire said: “Underlying consumer confidence remains weak in our major markets, so we continue to focus hard on our self-help initiatives to drive growth, margin and cost efficiencies.”
£250m missile system deal will secure 500 jobs Defence Secretary Philip Hammond has announced a £250 million contract for a new naval defence missile system, securing jobs in Bristol. Production of the Sea Ceptor, which can travel at 2,000mph and will be fitted to the Royal Navy’s Type 23 frigates to intercept and destroy enemy missiles, will sustain 500 jobs in the UK. Half of those jobs will be at manufacturer MBDA’s sites in Filton, Stevenage and Lostock, with a further 250 jobs at companies in the supply chain. Mr Hammond, speaking at the Defence Security Equipment International arms fair at London’s ExCel Centre, said
Philip Hammond said the Sea Ceptor provided a ‘huge boost’
Business Secretary Vince Cable restarted the production of the distinctive black cab six months after the London Taxi Company was rescued from administration by China’s Geely Group. Since the rescue in February more than 60 new jobs have been created in Coventry. Find out how the West’s employment market is faring SEE PAGE 6
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the Sea Ceptor “will play a vital role in protecting frigates”. In the future the missile, which can intercept multiple targets and protect a 15-mile area, will also be fitted to the Type 26 Global Combat Ship. Mr Hammond said: “The production of Sea Ceptor will be a huge boost to the UK’s world-leading missile industry, providing hundreds of jobs. “Having balanced the defence budget, we continue to order new equipment for our forces with confidence.” The MoD has extended an agreement made with MBDA in 2010 to manage the UK’s complex weapons portfolio. First Sea Lord, Admiral Sir George Zambellas, said: “This state-of-the-art missile system is part of an exciting renaissance in our naval equipment programme.”
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What Lord Heseltine thinks of Bristol’s economy Page 4
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