Final Results - Part 1

Kingfisher PLC
21 March 2006

Tuesday 21 March 2006



                                 Kingfisher plc

           Preliminary results for the 52 weeks ended 28 January 2006



Group Financial Summary


                                             2005/06          2004/05         Change        Constant       LFL sales
                                                                                            Currency
Retail sales                                 £8,010m          £7,650m          +4.7%          +3.9%          -2.2%

Adjusted pre-tax profit  (1)                 £445.7m          £661.4m         -32.6%

Adjusted post-tax profit (1)                 £285.1m          £454.4m         -37.3%

Adjusted basic EPS (1)                        12.3p            19.7p          -37.6%

Pre-tax profit                               £231.8m          £647.7m         -64.2%

Post-tax profit                              £139.0m          £446.5m         -68.9%

Basic EPS                                      6.0p            19.3p          -68.9%

Full year dividend                            10.65p           10.65p            -

Net debt                                   £1,355.2m (£841m as at 29 January 2005)

(1) Adjusted measures are before exceptional items, financing fair value
remeasurements and amortisation of acquisition intangibles. A reconciliation to
statutory amounts is set out in the Financial Review.



Summary

•   Tough trading conditions impact B&Q sales and profits

    o       New management team launched action programme

    o       Initiatives delivering first results

•   In France, Kingfisher outperformed the market with sales up 6%

•   In Rest of Europe and Asia, sales up 28% with 47 new stores in eight
    countries

•   Net exceptional costs of £215.4 million, principally B&Q restructuring
    programme

•   Market values of properties up 12% (£325 million). Property market
    value of £3.0 billion.



Gerry Murphy, Group Chief Executive, said:

'Strong performances in continental Europe and Asia were more than offset by a
sharp downturn in home-related spending in the UK, presenting B&Q with its
toughest trading environment for many years.

'The UK home improvement market continues to weaken into 2006. With the
important spring and summer season still to come, it is too early to forecast
the full year, although a continuation of the recent stronger mortgage and
housing trends could provide some support later in the year.

'B&Q's new management has acted to support trading and accelerate development of
stores, ranges and services for the future. I am convinced that these
initiatives will make B&Q more attractive to its customers and more valuable for
shareholders.

'Kingfisher made good progress against its longer-term objectives of
strengthening its established businesses, expanding its developing operations,
entering new markets and harnessing the Group's buying power.'



2005/06 OPERATING SUMMARY
(all percentage increases are in constant currencies)


UK

Consumer spending in the year was increasingly impacted by high levels of
household debt and rising taxes, as well as higher utility and fuel bills.
Concerns about the outlook for the housing market further impacted the home
improvement sector, as seen in the 3.7% decline in the household goods market
(ONS) and an estimated decline in the Repair Maintenance and Improvement market
of nearly 4% in the year, the weakest market for over 10 years.

Against this background B&Q's total reported sales fell 3.7% to £3.9 billion.
Retail profit of £208.5 million, down 52.0%, was impacted by the lower sales,
stock clearance, more aggressive price discounting and cost inflation.

As the year progressed it became apparent that the UK home improvement sector
was facing a sharp cyclical down-turn in demand whilst continuing to open
additional retail space planned some years earlier. Ian Cheshire, Chief
Executive of B&Q since June 2005, and his new management team launched an action
programme to:

•   Reinforce price competitiveness

    o    Price reductions on nearly 800 top selling products

    o    Store-wide promotional events

    o    Over 60s (Diamond Club) discount card extended

•   Reduce costs

    o    Streamlined support offices, with 400 fewer roles

    o    Stock levels managed down, £90 million below last year's level

•   Enhance customer service

    o   Improved stock availability of the top 100 products

    o   Dedicated Service Squads introduced in 100 stores

•   Develop new product ranges

    o   New ranges including kitchens, tiles, flooring and air-conditioning

    o   Streamlined the process for new product introduction

    o   Over 3,000 new products to be introduced in 2006/07

•   Manage and develop store capacity

    o   Closed 17 less productive stores; plans to downsize 17 oversized stores

    o   21 mini-Warehouse conversions, eight new mini-Warehouses opened

    o   Two new Warehouse stores trialling new merchandising and ranges

    o   Management transferred from Asia and France for Warehouse renewal


The action programme gathered momentum during the second half as the initiatives
with more immediate impact, such as price promotions and 'Service Squads',
helped improve relative sales performance. Other initiatives, such as improved
stock availability, price reductions and Warehouse store development, are
expected to deliver increasing benefits through 2006/07.

A new UK Trade division was established to target the growing UK professional
market for trade and building materials. This division includes Screwfix Direct
which performed strongly following last year's capacity expansion with sales up
18.7% to £271.3 million and profits more than doubled at £15.7 million. Screwfix
Direct's Trade Counter trial, set up to complement its online and catalogue
business, has been successful with seven branches operating by the end of the
financial year, and 15 more planned in 2006/07. The year also saw the opening of
the first two Trade Depot branches with encouraging early results.

In France, according to Banque de France, DIY comparable store sales growth was
0.8%, its slowest rate for over 12 years. Total Kingfisher sales in France grew
6.3% (up 2.7% LFL) with retail profit up 8.1%.  Castorama continued its
successful revitalisation programme, improving its price perception ranking to
3rd, introducing over 6,000 new products, and increasing the total of new format
stores to 24.  Brico Depot traded well against strong comparatives.  In the
year, eight new stores opened and sales passed the £1 billion mark for the first
time.

In the Rest of Europe and Asia, 47 new stores were opened in eight countries.
Kingfisher's sales grew by 27.6% (up 3.9% LFL). A strong underlying trading
performance in Italy, Poland and China was offset by pre-opening costs in
Russia, trading losses from the acquired OBI stores in China and a lower
associate contribution from Hornbach.

The OBI stores are now trading under the B&Q China banner and will be fully
converted by mid 2006/07. Expansion continued into new developing markets with
significant growth potential.  The first B&Q Home store in South Korea was
opened, and the first Castorama Russia store opened shortly after the year end.
This takes the number of countries in which Kingfisher operates to 11.


Harnessing buying power and international diversity

During the year, Kingfisher's Strategic Supplier Management (SSM) programme
delivered gross incremental benefits of £120 million. Group own-brand
penetration was 22% with the strongest growth in China, which increased to 3.4%
from 0.8%. Direct sourcing increased by 5% to $575 million across the Group,
boosted by a 44% uplift in Kingfisher's businesses outside the UK.

Kingfisher's international diversity continued to be a source of strength,
particularly in store format and range development.


FUTURE DIRECTION

Kingfisher aims to provide attractive returns for shareholders and develop new
longer-term growth opportunities. This will be delivered by:

•    Strengthening leadership positions in the UK and France

B&Q will continue to focus on cost control, developing new product ranges,
improving existing store environments, enhancing customer service, and
reinforcing price competitiveness. New store openings will be limited and
focused mainly on the mini-Warehouse format.

In France, the 'twin-track' strategy of developing the complementary Castorama
and Brico Depot formats will continue. Castorama is now three years into its
revitalisation programme and will continue to improve its ranges, maintain its
price competitiveness and improve its stores, with a third of its estate
expected to be in the new format by the end of the year. Brico Depot store
openings will accelerate in 2006/07.  Brico Depot is now targeting 120 stores in
France, up from its previous target of 100.

•    Expanding in Europe and Asia

Kingfisher's businesses in Poland, Italy, Ireland, China and Taiwan have already
achieved critical mass and are contributing strongly to overall growth and
economic returns. Overall store numbers are expected to double in these markets
over the next five years.

•    Establishing in attractive new markets

Kingfisher will enter new markets where future growth and economics look
attractive.  The Koctas joint venture in Turkey is contributing to profits and
growing strongly. Brico Depot in Spain is growing strongly and is expected to
become profitable by 2007/08. Stores have recently been opened in growing
markets including South Korea, Russia and UK Trade.

•    Harnessing buying power and international diversity

Kingfisher will continue to harness the power of its buying scale and also its
geographic diversity to offer customers better value and fresh ideas.



2005/06 OPERATING REVIEW

UK

For the 52 weeks ended 28 January 2006

                 Retail Sales £m             % Total        % LFL          Retail Profit £m (2)         % Total
                 2005/6        2004/5        Change         Change         2005/6        2004/5         Change          
UK(1)            4,172.0       4,277.2       (2.5)%         (6.3)%         219.4         442.1          (50.4)%

(1)   UK includes B&Q in the UK, Screwfix Direct and Trade Depot.  It excludes
      B&Q in Ireland, which is reported within 'Rest of Europe'.

(2)   Retail Profit is defined in Note 1b of the Notes to the Financial
      Information.


UK Market - In 2005 consumer demand was seriously impacted by higher taxes and
living costs, as well as concerns about indebtedness, interest rates and the
direction of house prices. A 15% decline in housing transactions and 8% fewer
planning applications for home alterations* compounded the weakness in demand
for bigger ticket projects such as kitchens and bathrooms.  *(for the nine
months to September 2005).

B&Q estimates that the Repair, Maintenance and Improvement market declined
nearly 4% in the year, the weakest market for over 10 years. B&Q's market share
was 14.8% (2004/05: 14.7%) and B&Q continued to be ranked as the number one DIY
retailer by Verdict in its 2006 Customer Service Index.

B&Q

Trading - B&Q's total sales fell 3.7% to £3.9 billion (down 7.8% LFL). Customer
footfall was lower and sales in all major categories were weak, with sales of
kitchens, bathrooms and bedrooms the worst affected. Retail profit fell 52.0% to
£208.5 million reflecting the lower sales and lower margins as a result of stock
clearance, more aggressive discounting and price competition in the weak market.
Furthermore, underlying LFL cost inflation was 4% with store rents rising by
6% and business rates by 15%.

Management Action - In the second quarter of 2005/06, it became apparent that
the UK home improvement market was in a sharp cyclical down-turn with little
prospect of an early bounce-back. New management acted to improve
competitiveness and reduce costs so that B&Q is better suited to operate in the
current market, and well placed to benefit from a market upturn when this comes.
Immediate priorities were to develop new product ranges, reinforce price
competitiveness, enhance customer service and improve store environments whilst
reducing operating and fixed costs.

Product range development - UK consumers continue to regard product choice as
the key driver in deciding which DIY store to visit. B&Q has the widest range of
all DIY stores with its largest Warehouse stores stocking around 32,000
products. Half of all the smaller, older stores have now been converted to
mini-Warehouse format with an increase of up to 30% in product choice. B&Q also
plans to broaden its ranges in its Warehouse stores. For example from a standing
start, B&Q became the UK's number one retailer of fixed air conditioning
following the introduction of an exclusive DIY range sourced from the Far East.
During the second half of the year, the process for reviewing and updating
existing product ranges was overhauled with the aim of reducing the time from
'concept to shelf'. New products introduced in the year performed well,
including updated ranges of tiles, wooden floors, bathrooms, kitchens and
plants, with more new products planned for 2006/07.

Price competitiveness - B&Q continued its long-term 'Every Day Low Pricing'
strategy on everyday products reducing prices across many ranges including paint
and light-bulbs. A new 'Real Deal' marketing campaign was launched, with more
prominent communication of great value.  B&Q also extended the Diamond Card, its
over 60s discount card, to every store in the UK.

In addition, B&Q trialled two '10% off' weekends and two 'Big Project' weekends
to stimulate demand. These drove footfall and market share in higher ticket
projects and reduced stocks to below last year's levels. During 2006/07 new
store tills will be introduced with improved systems functionality allowing
promotions to be specifically targeted at major projects.

Service improvements - 'Service Squads' were introduced in over 100 of B&Q's
biggest stores in the year and this roll-out will continue in 2006/07. Service
Squads are shop floor staff, linked with two way radio communications, whose
sole responsibility is customer assistance. Stores were also cleared of excess
'point of sale' material which improved navigation. Staff servicing the Showroom
categories have undergone specialist training to help customers plan and design
their kitchen and bathroom projects and more specialist consultants have been
scheduled to work in-store during busy periods.

Store development - Following 10 years of expanding the Warehouse store network
B&Q has almost twice the selling space of its nearest direct competitor.

Recognising that finding and obtaining planning permission for economically
attractive sites for new Warehouse stores was becoming increasingly difficult, B
&Q developed a smaller format mini-Warehouse. This has been very successful;
popular with customers, easier to develop and with good financial returns.
Building on the existing Warehouse estate and the new mini-Warehouse format, B&Q
has re-focused its store development on the mini-Warehouse format and on
updating the larger Warehouse stores to showcase finished home improvement
projects alongside component tools and materials. It will close older, smaller
stores not suitable for conversion due to their proximity to other B&Q stores
and limit new store openings to markets where B&Q is not currently represented.

During the year, six Warehouse and eight mini-Warehouse stores opened and 21
stores were converted to the mini-Warehouse format.  In total 25 stores closed,
17 as part of the space rationalisation programme, with a further three planned
in 2006/07.  B&Q now has 114 Warehouses, 88 mini-Warehouses and 120 unconverted
smaller stores. Format trials continue in four Warehouse stores aimed at
developing a modernisation blueprint for the Warehouse estate. These trials are
expected to complete during 2006.

At the end of 2006/07 B&Q expects to have 114 Warehouses, 117 mini-Warehouses
and 91 unconverted smaller stores.  In total, nine new stores will open, six
existing Warehouses will be revamped and 23 older smaller stores will be
converted.  As part of the plans to downsize 17 Warehouses, three are expected
to be complete by the end of the year.

Cost reduction - Initiatives to reduce costs have been focused on central
functions and productivity improvements. Over £30 million was saved in the year
in stores and supply chain by flexing costs in response to lower sales. B&Q's
central office was streamlined with the loss of 400 roles which will result in
annualised savings of £16 million in 2006/07.

UK TRADE

Screwfix Direct - Following the previous year's expansion of fulfilment capacity
sales grew 18.7% to £271.3 million and retail profit was £15.7 million (2004/05:
£7.6 million). Sales benefited from range development and a bigger catalogue.  A
further six trial Screwfix Direct Trade Counters were opened in the year and are
proving very popular with customers. Fifteen more are planned to open in 2006/
07.

Trade Depot opened two trial branches towards the end of the year, focused on
serving general builders and specialist trade customers. Trade Depot offers a
similar range of products to Brico Depot in France, including doors and windows,
heating and plumbing and kitchens and bathrooms.  The early response from
customers is encouraging and three further branches are planned for 2006/07.


2005/06 OPERATING REVIEW


FRANCE


For the 52 weeks ended 28 January 2006


Retail sales £m                2005/6              2004/5          % Change           % Change           % LFL
                                                                   (Reported)         (Constant)         Change
France                         2,724.9             2,546.7         7.0%               6.3%               2.7%


Retail profit £m               2005/6              2004/5          % Change           % Change
                                                                   (Reported)         (Constant)
France                         230.0               211.4           8.8%               8.1%



2005/06 £1 =1.4649 euro 2004/05 £1 = 1.4739 euro


In France, according to Banque de France, DIY comparable store sales growth was
0.8%, its slowest rate for over 12 years. Kingfisher's market share grew with
LFL sales up 2.7%, benefiting from the twin-track development of the full range
Castorama home improvement format and the discount Brico Depot format.

CASTORAMA

Castorama sales of £1.6 billion (-0.2% LFL) and retail profit of £132.2 million
were in line with the previous year after a strong second half offset the impact
of range change, store revitalisation and a weaker market in the first half.
Cost productivity savings and Group supply benefits funded price reduction and
store refurbishment.  In the third year of a major revitalisation programme,
Castorama made further improvements in product ranges, store environment and
cost productivity and is now ranked by consumers as the home improvement store
of first choice, according to INFORCO.

Price competitiveness - Castorama continued to reduce prices on everyday
products and reinforced its value credentials with a billboard and catalogue
marketing campaign.  Its price perception ranking continued to improve, now
independently ranked third by consumers, an improvement from ninth in 2003
(INFORCO).

Range development - Over 6,000 new, more contemporary decorative, shower and
kitchen products were introduced as part of a full re-launch of these ranges
with supporting catalogues.  This caused some trading disruption in the first
half as stores were cleared of previous ranges and new ranges introduced. The
response from customers in the second half was positive, with kitchen and
bathroom sales being the strongest performing categories.

During the second half Castorama LFL sales growth of 3.0% exceeded the Banque de
France comparable store sales growth of 2.1%.  Castorama plans more range
improvements in 2006/07, including new ranges of kitchens, tiles and window
decor.

Store development - Following 30 months of store development activity, Castorama
now has a quarter of all its stores in the new modern format and these continue
to outperform.  Two new stores were opened, six were revamped and three
relocated. A further seven relocations, two new openings and six transfers to
Brico Depot are planned for 2006/07.

Cost productivity - A strong focus on cost productivity has enabled Castorama to
lower its prices and invest in stores whilst increasing profits over the last
three years. Castorama continued to take full advantage of the Group's sourcing
programmes to reduce the cost of products with direct imports as a proportion of
total purchases up to 8%.


BRICO DEPOT

Brico Depot continued to deliver growth against strong comparatives and annual
sales exceeded £1 billion for the first time.

Sales increased 17.1% to £1.1 billion (+7.3% LFL).  Sales were strong in all
categories, boosted by the addition of new products to existing ranges, and the
distribution of a second annual catalogue. Retail profit increased 23.2% to
£97.8 million.  Margins benefited from improving scale efficiencies and SSM
buying synergies.

Eight new stores opened, including one transfer from Castorama. The Brico Depot
store opening programme is expected to accelerate next year, with around seven
store openings and six transfers from Castorama.  Brico Depot is now targeting
over 120 stores in France, up from its previous target of 100.

To support continued growth, Brico Depot invested in new distribution facilities
and systems.


2005/06 OPERATING REVIEW


REST OF EUROPE

For the 52 weeks ended 28 January 2006


Retail sales £m                2005/6          2004/5          % Change            % Change           % LFL
                                                               (Reported)          (Constant)         Change
Rest of Europe(1) (2)          795.2           613.9           29.5%               21.1%              2.7%


Retail profit £m                2005/6          2004/5          % Change            % Change
                                                                (Reported)          (Constant)
Rest of Europe(1)               86.6            84.8            2.1%                (4.7)%



(1)  Rest of Europe includes Castorama Poland, Castorama Italy, Brico Depot
     Spain, Koctas in Turkey, B&Q Ireland, Castorama Russia and Hornbach in 
     Germany

(2)  Joint venture and associate sales are not consolidated.


Rest of Europe sales were up 21.1% (+2.7% LFL) to £795.2 million.  Retail profit
fell by 4.7% to £86.6 million, largely due to a reduced associate contribution
from Hornbach and start-up costs in Russia.

Seventeen new stores were opened in the year across five countries. Shortly
after the year end Kingfisher's first Castorama store in Russia opened.


Castorama Poland

Sales increased 15% to £417.0 million (+1.7% LFL).  In the first quarter LFL
sales declined against a very strong comparative as customers purchased ahead of
an increase in VAT rates in 2004. LFL sales returned to growth in the subsequent
three quarters as the comparatives eased, and were particularly strong in the
fourth quarter, boosted by customers purchasing ahead of a 31 December deadline
for claiming tax relief on construction and renovation projects. Underlying
trading conditions remained difficult with weak consumer spending and a
price-competitive market. Retail profit increased 1.0% to £52.5 million as good
cost control, Group sourcing and lower pre-opening costs more than offset slower
sales growth.

Castorama Poland, the number one ranked DIY retailer (ASM research),
consolidated its market-leading position with five new store openings. Six new
stores are planned for 2006/07, including a smaller store in the Brico Depot
format.


Castorama Italy

Castorama Italy performed well in a difficult market with sales up 15.6% to
£266.9 million supported by new seasonal and promotional catalogues with greater
emphasis on quality and price. According to Istat, total non-food retail sales
growth was 1.6% compared to Castorama Italy's like-for-like growth of 5.8%.

Retail profit increased 38.0% to £28.7 million, as SSM benefits and
volume-related cost efficiencies more than offset lower pricing.

Castorama Italy opened four new stores taking the total to 26. A further three
new stores and one relocation are planned for 2006/07.


Other Europe

B&Q Ireland opened three mini-Warehouse stores, taking the total to seven.
Brico Depot in Spain opened three new stores taking the total to seven and five
new stores are planned in 2006/07.  Brico Depot in Spain is expected to
break-even in 2007/08.  Castorama in Russia opened its first store in February.
The 8,500 square metre store offers 35,000 home improvement products targeted at
consumers and trade specialists.  A further three new stores are planned in the
next year.  Koctas in Turkey, a 50% joint venture, continued to improve
profitability benefiting from strong LFLs, the Kingfisher SSM programme and good
cost control. Two new stores opened, making Koctas the number one home
improvement retailer in Turkey, and four stores are planned in 2006.  Hornbach,
the leading German DIY warehouse retailer, in which Kingfisher has a 21%
interest, contributed £11.8 million to profit (2004/05: £19.1 million).

2005/06 OPERATING REVIEW


ASIA


For the 52 weeks ended 28 January 2006


Retail sales £m                2005/6          2004/5          % Change            % Change           % LFL
                                                               (Reported)          (Constant)         Change
Asia(1) (2)                    318.0           211.7           50.2%               47.1%              7.4%


Retail profit £m                2005/6          2004/5          % Change            % Change
                                                                (Reported)          (Constant)
Asia(1)                         (3.0)           1.9             n/a                 n/a



(1) Asia includes B&Q China, B&Q Taiwan, and B&Q Home in South Korea.

(2) Joint venture sales are not consolidated.



Asia sales increased 47.1% to £318.0 million (+7.4% LFL).  Retail losses of £3.0
million reflect continued progress in China and Taiwan offset by higher start-up
costs in South Korea and trading losses from the acquired OBI China stores.


B&Q China

B&Q China consolidated its position as market leader, completing the purchase of
OBI's majority equity interest in its Chinese operations on 30 June.  This
acquisition accelerated B&Q China's growth with sales up 44.7% to £312.8 million
(+7.4% LFL).  B&Q is now twice the size of the nearest competitor and the third
largest western retailer in China.  Sales growth was boosted by B&Q's home
decoration service which designed and fitted out 15,000 apartments in 2005.

The underlying B&Q business performed well with retail profit up 65.7% to £5.6
million, but total retail profit in China of £0.2 million was below last year
due to the impact of trading losses from the acquired OBI stores.

Store numbers increased by 27 to 48, including 13 ex-OBI stores.  Ten new stores
are planned in 2006/07.  The programme to integrate the OBI stores is
progressing well with stores re-branded B&Q. The transition to B&Q's systems,
merchandising and product offer is well advanced and the first fully revamped
conversions to the B&Q format are now trading. All stores are expected to be
converted by summer 2006.


Other Asia

B&Q Home in South Korea opened its first store in June 2005.  The 7,400 square
metre store offers 35,000 products and a full 'Home Project Service' based on
the experience of B&Q China.  One new store is planned in 2006/07.

B&Q Taiwan, a 50% joint venture, increased retail profits by 32.1% to £7.4
million, driven by good sales growth and benefits of the Kingfisher SSM
programme.  Sales of Group own-brand power tools and air-conditioning units
exceeded expectations, and extended ranges will be introduced this year.  Two
new stores opened, and one new store is planned for 2006/07.


FINANCIAL REVIEW

Financial summary

A summary of the reported financial results for the year ended 28 January 2006
are set out below.
                                                                               2006             2005         Increase /
                                                                                 £m               £m         (decrease)

Revenue                                                                     8,010.1          7,649.6               4.7%

Operating profit                                                              269.5            676.4            (60.2)%

Adjusted profit before tax                                                    445.7            661.4            (32.6)%

Profit before tax                                                             231.8            647.7            (64.2)%

Basic earnings per share                                                       6.0p            19.3p            (68.9)%

Adjusted earnings per share                                                   12.3p            19.7p            (37.6)%

Dividends                                                                    10.65p           10.65p         -

Underlying Return on Invested Capital (ROIC)                                   7.3%             9.5%           -2.2 pps



A reconciliation of statutory profit to adjusted profit is set out below:


                                                                               2006             2005         Increase /
                                                                                                             (decrease)

Profit before tax                                                             231.8            647.7            (64.2)%

Exceptional items                                                             215.4             13.7

Financing fair value remeasurements                                           (1.6)                -

Amortisation of acquisition intangibles                                         0.1                -

Adjusted profit before tax                                                    445.7            661.4            (32.6%)

Income tax expense                                                           (92.8)          (201.2)

Adjustments to income tax expense                                            (68.3)            (5.3)

Adjusted profit after tax                                                     284.6            454.9            (37.4%)

Minority interest                                                               0.5            (0.5)

Adjusted profit after tax attributable to equity shareholders                 285.1            454.4            (37.3%)



Total reported sales grew 4.7% to £8.0 billion, up 3.9% on a constant currency
basis.  During the year, an additional 46 net new stores were added, taking the
store network to 645.  On an LFL basis, Group sales were down 2.2%.

Adjusted profit before tax declined 32.6% reflecting the tough trading
conditions in the UK that resulted in a significantly lower contribution from B&
Q.

Exceptional items

The Group incurred a £205.3 million restructuring charge in B&Q UK relating to
the planned closure of 20 stores, the downsizing of a further 17 stores and the
costs of streamlining B&Q's corporate offices, of which £66 million is non-cash.
A further charge of £19 million was incurred following B&Q's decision to
terminate a contract with its current supplier of consumer credit services and
£10 million arose integrating the OBI China business acquired in the year with B
&Q in China.  These were partially offset by £18.9 million profit on the
disposal of properties and investments, mostly in the UK.

Earnings per share

Basic earnings per share declined by 68.9% to 6.0p. Adjusted earnings per share
declined 37.6% from 19.7p to 12.3p per share as calculated below.

                                                                         2006                       2005
Basic earnings per share                                                 6.0p                       19.3p
Exceptional items (net of tax)                                           7.6p                       0.4p
Financing fair value remeasurements (net of tax)                         (0.1)p                     -
Reversal of prior year exceptional tax charge                            (1.2)p                     -

Adjusted earnings per share                                              12.3p                      19.7p



Dividends

The Board has proposed a final dividend of 6.8p per share, making the total
dividend for the year 10.65p per share, unchanged on the prior year.  This
dividend is covered 1.2 times by adjusted earnings (2005: 1.9 times).

The final dividend for the year ended 28 January 2006 will be paid on 2 June
2006 to shareholders on the register at close of business on 7 April 2006,
subject to approval of shareholders at the Company's Annual General Meeting, to
be held on 24 May 2006.  A dividend reinvestment plan (DRIP) is available to all
shareholders who would prefer to invest their dividends in the shares of the
Company.

Return on invested capital (ROIC)

ROIC is defined as net operating profit less adjusted taxes (adjusted operating
profit excluding property lease and depreciation costs less tax at the Group's
effective tax rate, plus property revaluation increases in the year) divided by
average invested capital (average net assets less financing related balances and
pension provisions, plus property operating lease costs capitalised at the
long-term property yield).

Following the transition to IFRS, the Group elected not to revalue properties
from 1 February 2004. However, property appreciation is an integral part of a
ROIC measure and therefore Kingfisher continues to include revaluation gains and
the current market value of our properties in ROIC calculations.

ROIC declined from 10.4% to 9.0%, compared to the Group's weighted average cost
of capital of 7.9%, down 0.5% percentage points on last year due to a fall in
gilt rates.

Underlying ROIC declined from 9.5% to 7.3%. Underlying ROIC assumes properties
appreciate in value at a steady rate over the long-term. When calculating the
underlying ROIC, short-term variations in property values more or less than the
long-term mean are excluded.

Cashflow

A total of £304.1 million (2005: £531.5 million) of net cash was generated from
operating activities. Excluding post employment benefit provision movements,
£36.9 million (2005: £144.3 million outflow) was generated from working capital
movements.  The level of stock rose by a net £33.3 million, reflecting growth in
the number of stores offset in part by stock reduction initiatives at B&Q in the
UK. Post employment pension provisions fell £135.2 million reflecting the
additional pension contributions made to the UK scheme.  Net capital expenditure
was £395.4 million (2005: £392.4 million).

The resulting year end net debt was £1,355.2 million (2005: £841.1 million).

Capital Expenditure

Kingfisher continues to prioritise its capital investment into projects and
businesses that offer the potential for the most attractive returns.  This is
supported by a rigorous capital allocation process:

-      An annual strategic planning process (which leads into the budget process
for the following year) based on detailed plans for all businesses for the next
five years. This process drives the key strategic capital allocation decisions
and the output is reviewed by the Board twice a year.

-            A capital approval process through a capital expenditure committee
chaired by the Group Finance Director delegated to review all projects between
£0.75 million and £7.5 million (including the capitalised value of lease
commitments).

-            Projects above this level are approved by the Executive Committee
or the Board although all projects above £0.75 million are notified to the
Board.

-            An annual post investment review process to review the performance
of all projects above £0.75 million which were completed in the prior year.  The
findings of this exercise are considered by both the Executive Committee and the
Board and directly influence the assumptions for similar project proposals going
forward.

Gross capital expenditure (excluding business acquisitions) for the Group was
£507.0 million (2005: £413.3 million).  £188.0 million was spent on property
(2005: £156.0 million) and £319.0 million on fixtures, fittings and intangibles
(2005: £257.0 million).  A total of £111.6 million (2005: £20.9 million) of
proceeds from disposals were received during the year, £97.4 million of which
came from property disposals.

Payments to acquire businesses in the year amounted to £167.5 million. £143.5
million related to the purchase of the OBI China business at the end of the
first half.  A further £24.0 million was spent buying out two minority interests
in China and some small acquisitions in France.  There were no business
disposals during the year.

Financing

The net interest charge for the year was £37.7 million, up £9.0 million from the
prior year reflecting higher average net debt. However, the interest charge
benefited from non-recurring interest receipts totalling £7.6 million, relating
to tax refunds and property disposals in prior years.

During the year, the Group issued a €550 million Medium Term Note under its
€2,500 million MTN Programme. The bond carries a coupon of 4.125% and matures in
November 2012. The proceeds were primarily used to repay bank loans.

In March 2005, the Group refinanced its £540 million committed bank facility
maturing in February 2007. This was replaced with a £500 million committed bank
revolving credit facility, provided by a number of banks, maturing in August
2010. In July 2005, the Group obtained a further £300 million committed bank
facility, which provided short-term funding, but this was subsequently repaid
and cancelled with the proceeds of the €550 million bond issue in November 2005.
In January 2006, the Group borrowed £50 million under a committed term borrowing
facility which matures in February 2009. Since the year end, the Group has
obtained another £300 million short-term committed bank facility maturing in
2008. All of the bank facilities are available to be drawn to support the
general corporate purposes of the Group including working capital requirements.

At the year end 23% of the Group's long-term borrowings were at a fixed rate of
interest (2005: 35%).

Taxation

The effective overall tax rate on profit has increased from 31.0% in the prior
year to 40.0% primarily due to exceptional costs not qualifying for tax relief.
The effective tax rate on profit before exceptional items and excluding prior
year tax adjustments is 34.4% (2005: 32.8%) reflecting the higher proportion of
profits in higher tax jurisdictions and higher overseas start up losses.

Property

The Group owns a significant property portfolio, most of which is used for
trading purposes and which had a market value of £3.0 billion at year end
compared to a net book value of £2.4 billion recorded in the financial
statements.  The unrecognised property revaluation gain for the year on
properties held at the year end was £325 million.

Pensions

Following transition to IFRS, the consolidated balance sheet now reflects post
employment benefit liabilities, mainly comprising defined benefit pension
arrangements.  The provision has reduced from £325.7 million at the start of the
year to £239.6 million at the year end.  An additional £130 million was paid
into the UK scheme during the year compared with the prior year. A fall in
corporate bond rates over the year from 5.3% to 4.7% increased UK pension
liabilities by £170 million.

Accounting changes - Adoption of International Financial Reporting Standards

Kingfisher has adopted International Financial Reporting Standards in the
current year, and as a result, has restated the comparative financial
information for the year ended 29 January 2005.  Since the publication of our
first half year interim results, two amendments in accounting policies have been
required.  Foreign exchange movements on intercompany loans will no longer be
reported in the income statement following the clarification of IAS 21 'The
effect of Changes in Foreign Exchange Rates'.  The accounting policy on the
treatment of operating lease rentals has also changed following clarification
from IFRIC (International Financial Reporting Interpretations Committee) on the
requirement to account for rental contracts which contain fixed rental uplifts
on a straight line basis. Further information is provided in Note 1a.

The Group has taken the option to defer the implementation of the standards IAS
32 'Financial Instruments: Disclosure and Presentation' and IAS 39 'Financial
Instruments: Recognition and Measurement' until the current financial year ended
28 January 2006 without restating comparative amounts.


DATA BY COUNTRY as at 28 January  2006

                                         Store numbers     Selling space                    Employees
                                                           (000s sq.m.)                     (FTE)

B&Q                                      322               2,269                            26,429
UK Trade (1)                             2                 9                                1,508
Total UK                                 324               2,278                            27,937
Castorama                                102               983                              12,061
Brico Depot                              73                381                              4,964
Total France                             175               1,364                            17,025
Castorama Poland                         30                257                              5,352
Castorama Italy                          26                160                              1,979
Other                                    21                112                              1,968
Total Rest of Europe                     77                529                              9,299
B&Q China (including OBI)                48                515                              9,573
B&Q Taiwan                               20                98                               1,879
Other                                    1                 7                                199
Total Asia                               69                620                              11,651
Total                                    645               4,791                            65,912

(1)       Store numbers do not include the seven trial Screwfix Trade Counters.


FULL YEAR -52 weeks to 28 January 2006


                               Retail Sales £m           % Total          % LFL    Retail Profit £m             % Total
                           2005/06      2004/05           Change         Change   2005/06       2004/05          Change
                                                       (Reported)                                             (Reported)
B&Q                        3,899.7      4,048.6           (3.7)%        (7.8)%
UK Trade                     272.3        228.6            19.1%         18.7%
Total UK                   4,172.0      4,277.2           (2.5)%        (6.3)%      219.4        442.1          (50.4)%

Castorama                  1,582.9      1,571.1             0.8%        (0.2)%
Brico Depot                1,142.0        975.6            17.1%          7.3%
Total France               2,724.9      2,546.7             7.0%          2.7%      230.0        211.4             8.8%

Castorama Poland             417.0        321.9            29.5%          1.7%
Castorama Italy              266.9        229.5            16.3%          5.8%
Other Europe(1)              111.3         62.6            77.8%        (2.7)%
Rest of Europe (1)           795.2        614.0            29.5%          2.7%       86.6         84.8             2.1%
(3)

B&Q China                    312.8        211.7            47.8%          7.4%
Other Asia(2) (3)              5.2      -              -               -
Asia                         318.0        211.7            50.2%          7.4%      (3.0)          1.9              n/a
Total                      8,010.1      7,649.6             4.7%        (2.2)%      533.0        740.2          (28.0)%

(1)     Other Europe includes Brico Depot Spain, Koctas in Turkey, B&Q Ireland,
Castorama Russia and Hornbach in Germany.

(2)  Other Asia includes B&Q Home in South Korea.

(3) Joint venture and associate sales are not consolidated.





Enquiries:


Ian Harding, Group Communications Director                       020 7644 1029

Nigel Cope, Head of Communications                               020 7644 1030



Heather Ward, Head of Investor Relations                         020 7644 1032



Further copies of this announcement can be downloaded from www.kingfisher.com
or are available from The Company Secretary, Kingfisher plc, 3 Sheldon Square,
London, W2 6PX.



Company Profile

Kingfisher plc is Europe's leading home improvement retail group and the third
largest in the world, with nearly 650 stores in 11 countries in Europe and Asia.
Its main retail brands are B&Q, Castorama, Brico Depot and Screwfix Direct.
Kingfisher also has a 21% interest in, and strategic alliance with, Hornbach,
Germany's leading DIY Warehouse retailer, with 123 stores across Europe.



                      This information is provided by RNS
            The company news service from the London Stock Exchange