Interim Results - Part 2
Kingfisher PLC
14 September 2006
KINGFISHER PLC
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
For the half year ended 29 July 2006
Half year ended 29 July 2006 Half year ended 30 July 2005
(restated)
Before Exceptional Total Before Exceptional Total
exceptional items exceptional items
£ millions Notes items (note 3) items (note 3)
Continuing operations
Revenue 2 4,349.1 - 4,349.1 4,079.4 - 4,079.4
Cost of sales (2,860.0) - (2,860.0) (2,635.5) - (2,635.5)
Gross profit 1,489.1 - 1,489.1 1,443.9 - 1,443.9
Selling and distribution expenses (1,081.8) - (1,081.8) (993.3) - (993.3)
Administrative expenses (216.9) - (216.9) (198.1) - (198.1)
Other income 11.2 42.0 53.2 9.4 1.9 11.3
Share of post tax results of joint 5.8 - 5.8 5.3 - 5.3
ventures and associates
Operating profit 207.4 42.0 249.4 267.2 1.9 269.1
Total finance costs (36.9) - (36.9) (22.4) - (22.4)
Total finance income 10.6 - 10.6 8.5 - 8.5
Net finance costs 4 (26.3) - (26.3) (13.9) - (13.9)
Profit before taxation 181.1 42.0 223.1 253.3 1.9 255.2
Income tax expense 6 (62.4) 6.4 (56.0) (86.5) - (86.5)
Profit for the period 118.7 48.4 167.1 166.8 1.9 168.7
Attributable to:
Equity shareholders 168.5 168.5
Minority interest (1.4) 0.2
167.1 168.7
Earnings per share 7
Basic 7.2 7.2
Diluted 7.2 7.2
Operating profit analysed as:
Retail profit before central costs 231.5 41.6 273.1 288.0 1.9 289.9
Central costs (18.2) 0.4 (17.8) (16.0) - (16.0)
Amortisation of acquisition (0.1) - (0.1) - - -
intangibles
Share of interest and taxation of (5.8) - (5.8) (4.8) - (4.8)
joint ventures and associates
Operating profit 207.4 42.0 249.4 267.2 1.9 269.1
The proposed interim dividend for the period ended 29 July 2006 amounts to
£90.8m (2005: £90.5m).
Adjusted earnings per share information is provided in note 7.
KINGFISHER PLC
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
For the half year ended 29 July 2006
Year ended 28 January 2006
Before Exceptional Total
exceptional items
£ millions Notes items (note 3)
Continuing operations
Revenue 2 8,010.1 - 8,010.1
Cost of sales (5,165.1) (7.9) (5,173.0)
Gross profit 2,845.0 (7.9) 2,837.1
Selling and distribution expenses (2,005.0) (181.0) (2,186.0)
Administrative expenses (390.7) (26.4) (417.1)
Other income 24.2 18.9 43.1
Other expenses - (19.0) (19.0)
Share of post tax results of joint ventures 11.4 - 11.4
and associates
Operating profit 484.9 (215.4) 269.5
Total finance costs (51.6) - (51.6)
Total finance income 13.9 - 13.9
Net finance costs 4 (37.7) - (37.7)
Profit before taxation 447.2 (215.4) 231.8
Income tax expense 6 (161.6) 68.8 (92.8)
Profit for the year 285.6 (146.6) 139.0
Attributable to:
Equity shareholders 139.5
Minority interest (0.5)
139.0
Earnings per share 7
Basic 6.0
Diluted 6.0
Operating profit is analysed as:
Retail profit before central costs 533.1 (219.1) 314.0
Central costs (37.8) 3.7 (34.1)
Amortisation of acquisition intangibles (0.1) - (0.1)
Share of interest and taxation of joint (10.3) - (10.3)
ventures and associates
Operating profit 484.9 (215.4) 269.5
KINGFISHER PLC
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE (UNAUDITED)
For the half year ended 29 July 2006
Half year ended Half year ended Year ended
29 July 2006 30 July 2005 28 January 2006
£ millions Notes (restated)
Actuarial gains/(losses) on post employment 11 62.3 7.3 (45.6)
benefits
Currency translation differences 11 (15.0) 5.2 28.4
Cash flow and net investment hedges
- Gains and losses deferred in equity 11 (4.8) 7.6 7.5
- Transferred to income statement in the period 11 (0.5) 2.0 (2.7)
- Transferred to initial carrying amount of asset 11 (0.6) 1.3 3.2
Tax on items taken directly to equity 11 (17.0) (4.2) 20.1
Net income recognised directly in equity 24.4 19.2 10.9
Profit for the financial period 167.1 168.7 139.0
Total recognised income and expense for the period 191.5 187.9 149.9
Attributable to:
Equity shareholders 193.1 187.6 149.4
Minority interests (1.6) 0.3 0.5
191.5 187.9 149.9
Effect of changes in accounting policy on
adoption of IAS 39
Attributable to:
Equity shareholders - (2.2) (2.2)
Minority interests - - -
- (2.2) (2.2)
KINGFISHER PLC
CONSOLIDATED BALANCE SHEET (UNAUDITED)
As at 29 July 2006
Half year ended Half year ended Year ended
29 July 2006 30 July 2005 28 January 2006
£millions Notes (restated)
Non-current assets
Goodwill 10 2,555.3 2,545.5 2,558.8
Intangible assets 100.4 78.3 101.7
Property, plant and equipment 3,223.9 3,262.4 3,265.0
Investment property 14.2 20.3 15.3
Investments accounted for using equity method 187.1 181.2 185.0
Other receivables 45.3 77.9 51.7
6,126.2 6,165.6 6,177.5
Current assets
Inventories 1,474.1 1,421.8 1,355.3
Trade and other receivables 560.4 434.0 570.6
Available for sale financial assets 10.2 - -
Current tax receivable 4.8 7.2 20.7
Cash and cash equivalents 576.3 163.6 234.1
2,625.8 2,026.6 2,180.7
Total assets 8,752.0 8,192.2 8,358.2
Current liabilities
Short-term borrowings (249.8) (398.3) (346.8)
Trade and other payables (2,054.5) (1,863.9) (1,750.8)
Provisions (60.1) (2.3) (46.6)
Current tax liabilities (62.2) (70.3) (77.0)
(2,426.6) (2,334.8) (2,221.2)
Net current assets/(liabilities) 199.2 (308.2) (40.5)
Total assets less current liabilities 6,325.4 5,857.4 6,137.0
Non-current Liabilities
Long term borrowings (1,480.5) (858.2) (1,255.5)
Other payables (22.0) (1.0) (5.7)
Provisions (83.2) (8.7) (111.4)
Deferred income tax liabilities (217.7) (221.3) (204.4)
Post employment benefits (157.0) (322.3) (239.6)
(1,960.4) (1,411.5) (1,816.6)
Total liabilities (4,387.0) (3,746.3) (4,037.8)
Net assets 4,365.0 4,445.9 4,320.4
Capital and reserves
Share capital 2,460.8 2,442.9 2,450.0
Other reserves 11 1,897.6 1,979.0 1,861.0
Minority interests 6.6 24.0 9.4
Total equity 4,365.0 4,445.9 4,320.4
Approved by the Board
Duncan Tatton-Brown
Director
13 September 2006
KINGFISHER PLC
CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)
For the half year ended 29 July 2006
Half year ended 29 Half year ended 30 Year ended
July 2006 July 2005 28 January 2006
£ millions Notes (restated)
Net cash flows from operating activities 8 427.4 339.0 304.1
Cash flows from investing activities
Purchase of subsidiary and business undertakings 10 (0.7) (158.6) (167.5)
Cash acquired on purchase of subsidiary - 6.5 6.5
undertakings
Purchase of associates and joint ventures - (2.2) (2.2)
Payments to acquire property, plant and equipment & (253.6) (236.1) (435.3)
investment property
Payments to acquire intangible assets (12.2) (20.4) (71.7)
Receipts from sale of property, plant and equipment 210.2 17.2 111.2
& investment property
Receipts from sale of intangible assets - - 0.4
Sale of available for sale financial assets 0.4 - 3.6
Dividends received from joint ventures and 0.8 - 4.9
associates
Net cash used in investing activities (55.1) (393.6) (550.1)
Cash flows from financing activities
Interest paid (27.2) (4.5) (39.3)
Interest element of finance lease rental payments (2.6) (3.0) (6.6)
Interest received 6.6 9.7 10.9
Proceeds from issue of share capital 4.9 3.3 9.7
Capital injections from minority interests - - 1.7
Receipts from the sale of own shares 2.5 3.0 2.6
Issue of Medium Term Notes - 20.6 373.5
Issue of other fixed term debt 252.4 - -
(Decrease)/increase in other loans (49.6) 213.2 150.5
Capital element of finance lease rental payments (4.2) (5.6) (7.8)
Increase in available for sale financial assets (10.1) - -
Dividends paid to Group shareholders 5 (158.5) (157.9) (247.4)
Dividends paid to minority interests (0.8) - -
Net cash generated in financing activities 13.4 78.8 247.8
Net increase in cash and cash equivalents 385.7 24.2 1.8
Cash and cash equivalents at beginning of period 113.7 105.9 105.9
Currency translation differences 2.6 1.7 6.0
Cash and cash equivalents at end of period 502.0 131.8 113.7
For the purposes of the cash flow statement, cash and cash equivalents are
included net of overdrafts repayable on demand. These overdrafts are excluded
from the definition of cash and cash equivalents disclosed on the balance sheet.
KINGFISHER PLC
NOTES TO THE INTERIM FINANCIAL REPORT (UNAUDITED)
For the half year ended 29 July 2006
1. General information
a) Basis of Preparation
These unaudited consolidated financial statements for the six months ended 29
July 2006 have been prepared in accordance with the listing rules of the
Financial Services Authority. Accounting policies have been consistently
applied in the interim financial report on the basis set out in the Group's
financial statements for the year ended 28 January 2006 on pages 50 to 54. As a
result, the comparatives at 30 July 2005 have been restated for both the
clarification of IAS 21 and with regard to leases that contain predetermined,
fixed minimum rental increases, as described below.
The clarification of IAS 21 issued in December 2005 requires exchange
differences arising on a monetary item which forms part of a reporting entity's
net investment in a foreign operation to be recognised initially in a separate
component of equity in the consolidated financial statements. This requirement
applies irrespective of whether the monetary item results from a transaction
with the parent or with any of its subsidiaries. As a result of this
clarification, gains and losses on intercompany balances previously recognised
in the income statement within net finance costs are no longer recognised in the
income statement but rather directly in reserves which offset the equal and
opposite amount in reserve movements on consolidation. The impact of this change
is an increase in profit before tax of £5.4m for the half year ended 30 July
2005 and a change in net assets of £nil at 30 July 2005.
With regard to leases that contain predetermined, fixed minimum rental
increases, the International Financial Reporting Interpretations Committee
(IFRIC) clarified in the second half of the last financial year that it is
necessary to account for these leases on a straight-line basis over the life of
the lease. Formerly, the Group accounted for these property lease rentals such
that the increases were charged to the income statement in the year in which
they arose. The impact of this change is a reduction in profit before tax of
£1.0m for the half year ended 30 July 2005 and a reduction in net assets of
£5.0m at 30 July 2005.
In accordance with IFRS 3, adjustments have been made to the carrying value of
goodwill at 30 July 2005 to reflect the finalisation of the provisional fair
values relating to the acquisition of the OBI China business in the first half
of the last financial year. Further information is provided in note 10.
b) Full year comparatives
The half year results are unaudited and were approved by the Board of Directors
on 13 September 2006. The results for the year ended 28 January 2006 are based
on full audited accounts which were filed with the Registrar of Companies and on
which the auditors made a report 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.
c) Use of adjusted measures
Kingfisher believes that retail profit*, adjusted profit before tax, adjusted
profit after tax 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 item' 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
separate reporting of non-recurring exceptional items, which are presented as
exceptional within their relevant consolidated income statement category, helps
provide a better indication of the Group's underlying business performance. The
principal items that will be included as exceptional items are non trading items
included in operating profit such as:
• profits and losses on the disposal of subsidiaries, associates and
investments which do not form part of the Group's trading activities;
• gains and losses on the disposal of properties; and
• the costs of significant restructuring and incremental acquisition
integration costs.
* Retail profit is defined as operating profit before central costs (the costs
of the Corporate Centre), exceptional items, acquisition intangibles
amortisation and the share of joint venture and associate interest and tax.
2. Segmental analysis
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. The 'Asia' segment consists of B&Q China, B&Q South Korea
and B&Q Taiwan.
The segment results for the half year ended 29 July 2006 are as follows:
£ 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
Segment result before joint ventures and associates 133.4 95.3 26.2 16.2 (9.7) 261.4
Share of post tax results of joint ventures and - 0.3 - 3.4 2.1 5.8
associates
Total segment result 133.4 95.6 26.2 19.6 (7.6) 267.2
Unallocated central costs (17.8)
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
The segment results for the half year ended 30 July 2005 are as follows:
£ millions United France Poland Rest of Asia Total
Kingdom Europe
External revenue 2,224.9 1,381.7 180.6 180.9 111.3 4,079.4
Segment result before joint ventures and associates 150.5 101.9 20.1 12.3 (5.0) 279.8
Share of post tax results of joint ventures and - 0.7 - 2.0 2.6 5.3
associates
Total segment result 150.5 102.6 20.1 14.3 (2.4) 285.1
Unallocated central costs (16.0)
Operating profit 269.1
Net finance costs (13.9)
Profit before taxation 255.2
Income tax expense (86.5)
Profit for the period 168.7
The segment results for the year ended 28 January 2006 are as follows:
£ millions United France Poland Rest of Asia Total
Kingdom Europe
External revenue 4,172.0 2,724.9 417.0 378.2 318.0 8,010.1
Segment result before joint ventures and associates 10.9 228.9 52.5 20.3 (20.4) 292.2
Share of post tax results of joint ventures and - 0.3 - 5.5 5.6 11.4
associates
Total segment result 10.9 229.2 52.5 25.8 (14.8) 303.6
Unallocated central costs (34.1)
Operating profit 269.5
Net finance costs (37.7)
Profit before taxation 231.8
Income tax expense (92.8)
Profit for the year 139.0
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.
3. Exceptional items
The following one-off items, as defined in note 1c), have been charged in
arriving at profit before interest and taxation:
Half year ended Half year ended Year ended
£ millions 29 July 2006 30 July 2005 28 January 2006
Included within cost of sales, selling & distribution and
administrative expenses:
B&Q UK - reorganisation costs - - (205.3)
OBI China - integration costs - - (10.0)
- - (215.3)
Included within other income:
Profit on disposal of properties 41.6 1.9 15.3
Profit on disposal of available for sale financial assets 0.4 - 3.6
42.0 1.9 18.9
Included within other expenses:
B&Q UK - financial services termination fee - - (19.0)
- - (19.0)
Total exceptional items 42.0 1.9 (215.4)
A majority of the profit on disposal of properties in the current period arose
in connection with the sale and leaseback of seven UK warehouse stores to The
British Land Company through the disposal of a subsidiary company.
The Group also received further consideration of £0.4m in the current period
relating to the disposal of its investment in improveline.com in the prior year.
4. Finance costs
Half year ended 29 Half year ended 30 Year ended
July 2006 July 2005 28 January 2006
£ millions (restated)
Bank and other interest payable 37.7 21.8 52.7
Less amounts capitalised (0.7) (1.6) (3.3)
Net interest charge on defined benefit schemes - 3.0 3.8
Financing fair value remeasurements (2.7) (0.8) (1.6)
Unwinding of discount on provisions 2.6 - -
Total finance cost 36.9 22.4 51.6
Bank and other interest receivable (7.8) (8.5) (13.9)
Net interest return on defined benefit schemes (2.8) - -
Total finance income (10.6) (8.5) (13.9)
Net finance costs 26.3 13.9 37.7
5. Dividends
Half year ended Half year ended Year ended
£ millions 29 July 2006 30 July 2005 28 January 2006
Amounts recognised as distributions to equity holders in the
period:
Interim dividend for the year ended 28 January 2006 of 3.85p
per share - - 89.5
Final dividend for the year ended 28 January 2006 of 6.8p
(2005: 6.8p) per share 158.5 159.7 159.7
Dividend paid to Employee Share Ownership Plan Trust (ESOP)
shares - (1.8) (1.8)
158.5 157.9 247.4
Proposed interim dividend for the half year to 29 July 2006
of 3.85p per share 90.8
In accordance with IAS 10 'Events after the Balance Sheet Date', the interim
dividend which has been approved by the Board is not included as a liability.
Further details on the interim dividend can be found in note 13.
6. Income tax expense
Half year ended Half year ended Year ended
29 July 2006 30 July 2005 28 January 2006
£ millions (restated)
Current tax:
UK Corporation tax 16.9 22.5 (9.0)
Foreign tax 42.8 37.5 87.1
59.7 60.0 78.1
Deferred tax (3.7) 26.5 14.7
Total income tax expense 56.0 86.5 92.8
The effective tax rate, before the impact of exceptional items and prior year
adjustments, for the interim period is 34.5% (2005: 34.1%) representing the best
estimate of the effective rate for the full financial year. The effective tax
rate for the year ended 28 January 2006 was 34.4%.
7. Earnings per share
Basic earnings per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of ordinary shares in issue
during the year, excluding those held in the ESOP which are treated as
cancelled.
For diluted earnings per share, the weighted average number of ordinary shares
in issue is adjusted to assume conversion of all dilutive potential ordinary
shares. These represent share options granted to employees where the exercise
price is less than the average market price of the Company's shares during the
period.
The weighted average number of shares in issue during the period was 2,331.8
million (2005: 2,324.2 million) and the diluted weighted average number of
shares in issue during the period was 2,338.9 million (2005: 2,334.5 million).
For the year ended 28 January 2006, the weighted average number of shares in
issue was 2,324.7 million and the diluted average number of shares in issue was
2,334.9 million.
Supplementary earnings per share figures are presented. These exclude the
effects of exceptional items (disclosed in note 3), financing fair value
remeasurements and amortisation of acquisition intangibles, to allow comparison
of underlying trading performance on a consistent basis.
The calculation of basic and diluted earnings per share is based on the profit
on ordinary activities, after taxation and minority interests of £168.5 million
(2005: £168.5 million). For the year ended 28 January 2006, the profit on
ordinary activities after taxation and minority interests was £139.5 million.
Half year ended Half year ended Year ended
Pence per share 29 July 2006 30 July 2005 28 January 2006
(restated)
Basic earnings per share 7.2 7.2 6.0
Effect of non-recurring costs
Exceptional items (1.8) (0.1) 9.3
Tax impact arising on exceptional items (0.2) - (1.7)
Financing fair value remeasurements (0.1) - (0.1)
Reversal of prior year exceptional charge - - (1.2)
Basic - adjusted earnings per share 5.1 7.1 12.3
Diluted earnings per share 7.2 7.2 6.0
Effect of non-recurring costs
Exceptional items (1.8) (0.1) 9.2
Tax impact arising on exceptional items (0.2) - (1.7)
Financing fair value remeasurements (0.1) - (0.1)
Reversal of prior year exceptional charge - - (1.2)
Diluted - adjusted earnings per share 5.1 7.1 12.2
8. Net cash flows from operating activities
Reconciliation of operating profit to net cash flows from operating activities:
Half year ended Half year ended Year ended
29 July 2006 30 July 2005 28 January 2006
£ millions (restated)
Group operating profit 249.4 269.1 269.5
Adjustments for:
Depreciation and amortisation 95.3 86.5 181.8
Impairment losses - - 47.6
Share-based compensation charge 5.5 3.9 14.1
Share of post tax results of joint ventures and associates (5.8) (5.3) (11.4)
(Profit)/loss on disposal of property, plant and equipment (37.6) (0.4) 22.5
Loss on disposal of intangible assets - - 2.0
Profit on disposal of available for sale financial assets (0.4) - (3.6)
Operating cash flows before movements in working capital 306.4 353.8 522.5
Movements in working capital (excluding the effects of
acquisitions and disposals of subsidiaries and exchange
differences on consolidation):
Increase in inventories (123.1) (90.2) (33.3)
Decrease/(increase) in trade and other receivables 3.7 21.9 (97.3)
Increase in trade and other payables 331.4 160.4 27.3
(Decrease)/increase in post employment benefits (17.4) 0.9 (135.2)
(Decrease)/increase in provisions (14.7) (6.8) 140.2
179.9 86.2 (98.3)
Cash generated by operations 486.3 440.0 424.2
Income taxes paid (58.9) (100.3) (120.1)
Net cash flows from operating activities 427.4 339.7 304.1
9. Reconciliation of net debt
Net debt incorporates the Group's borrowings (together with related fair value
movements of derivatives on the debt), bank overdrafts and obligations under
finance leases, less cash and cash equivalents, as detailed below.
Half year ended Half year ended Year ended
29 July 2006 30 July 2005 28 January 2006
£ millions (restated)
Cash and cash equivalents 576.3 163.6 234.1
Current available for sales financial assets 10.2 - -
Bank overdrafts (74.3) (31.8) (120.4)
Bank loans (233.3) (392.4) (286.3)
Medium Term Notes and other fixed term debt (1,350.7) (761.1) (1,123.7)
Interest rate derivatives (excluding accrued interest) (10.1) 47.3 13.0
Finance leases (71.8) (74.6) (71.9)
Net debt at end of period (1,153.7) (1,049.0) (1,355.2)
A reconciliation of the movement in net debt from the start to the end of the
period is detailed below.
Half year ended Half year ended Year ended
29 July 2006 30 July 2005 28 January 2006
£ millions (restated)
Net debt at start of period (1,355.2) (841.1) (841.1)
Net increase in cash and cash equivalents 385.7 24.2 1.8
Increase in available for sale financial assets 10.1 - -
Amortisation of underwriting and issue costs of new debt (0.4) (0.3) (0.5)
Increase in debt and lease financing (198.2) (228.2) (516.2)
Currency translation differences and fair value 4.3 (3.6) 0.8
adjustments on financial instruments
Net debt at end of period (1,153.7) (1,049.0) (1,355.2)
During the period, the Group issued US$466.5m (£252.4m) of fixed term debt
through the US Private Placement market. The debt was issued in three tranches,
with maturities of 7, 10 and 12 years, and the proceeds were swapped to sterling
at floating interest rates.
10. Acquisitions
During the prior year the Group acquired OBI AG's Chinese home improvement
operations. Goodwill of approximately £76m was recognised at 30 July 2005 based
on provisional fair values and the purchase price being subject to the
finalisation of a completion accounts process. The purchase price and
provisional fair values were finalised during the second half of last financial
year. In accordance with IFRS 3, these adjustments have been applied
retrospectively resulting in a £1.8m reduction in goodwill at 30 July 2005.
11. Reserves
The movements in the Group's consolidated reserves in the period to 29 July 2006
and the comparative period are summarised as follows:
£ millions Hedging Translation Non-distributable Retained Total
reserve reserve reserves earnings
Balance 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
Treasury shares disposed - - - (2.5) (2.5)
Share-based compensation charge - - - 5.5 5.5
Share based compensation - shares awarded - - - (0.8) (0.8)
Currency translation differences - (15.0) - - (15.0)
Gains and losses deferred in equity (4.8) - - - (4.8)
Transferred to income statement in the period (0.5) - - - (0.5)
Transferred to initial carrying amount of asset (0.6) - - - (0.6)
Tax on items taken from/transferred to equity 1.8 - - (18.8) (17.0)
Net gains and losses recognised directly in equity (4.1) (15.0) - 45.7 26.6
Profit for the period - - - 168.5 168.5
Total recognised income and expense for the period (4.1) (15.0) - 214.2 195.1
Dividends - - - (158.5) (158.5)
At 29 July 2006 (2.9) 77.1 159.0 1,664.4 1,897.6
Balance at 29 January 2005 - 56.1 159.0 1,734.6 1,949.7
First time adoption adjustment in respect of IAS 39 (4.4) 0.7 - 1.5 (2.2)
Restated balance at 30 January 2005 (4.4) 56.8 159.0 1,736.1 1,947.5
Actuarial gains on post employment benefits - - - 7.3 7.3
Treasury shares disposed - - - (2.2) (2.2)
Share-based compensation charge - - - 3.9 3.9
Currency translation differences - 5.2 - - 5.2
Gains and losses deferred in equity 7.6 - - - 7.6
Transferred to income statement in the period 2.0 - - - 2.0
Transferred to initial carrying amount of asset 1.3 - - - 1.3
Tax on items taken from/transferred to equity (3.3) 1.2 - (2.1) (4.2)
Net gains and losses recognised directly in equity 7.6 6.4 - 6.9 20.9
Profit for the period - - - 168.5 168.5
Total recognised income and expense for the period 7.6 6.4 - 175.4 189.4
Dividends - - - (157.9) (157.9)
At 30 July 2005 3.2 63.2 159.0 1,753.6 1,979.0
12. 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.
13. Shareholder information
Copies of the results will be sent to shareholders on 10th October 2006 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
20th September 2006 Ex-dividend date for interim dividend
22nd September 2006 Record date for interim dividend
26th October 2006 Final date for receipt of Drip Mandate Forms by Registrars
10th November 2006 Date for payment of interim cash dividend
17th November 2006 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 26th October 2006.
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
INDEPENDENT REVIEW REPORT TO KINGFISHER PLC
Introduction
We have been instructed by the company to review the financial information for
the half year ended 29 July 2006 which comprises the consolidated income
statement, consolidated statement of recognised income and expenditure,
consolidated balance sheet, consolidated cash flow statement and the related
notes. We have read the other information contained in the interim report and
considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The Listing Rules
of the Financial Services Authority require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes, and
the reasons for them, are disclosed.
This interim report has been prepared in accordance with the basis of
preparation set out in Note 1.
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 group 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 Listing 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
29 July 2006.
PricewaterhouseCoopers LLP
Chartered Accountants
London
13 September 2006
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