1st Quarter Results

Kingfisher PLC
04 June 2003


EMBARGOED UNTIL 0700 HOURS



Wednesday 4 June 2003



               KINGFISHER REPORTS FIRST QUARTER TRADING RESULTS FOR

                           13 WEEKS ENDED 3 MAY 2003


                                                  2003                        2002                   Change
                                                    £m                          £m
Retail sales                                   2,632.6                     2,410.8                    +9.2%
Like-for-like sales                              +4.1%                       +1.4%                      n/a
Retail profit (1)                                154.0                       114.6                   +34.4%
Stocks                                         1,822.6                     1,772.2                    +2.8%
Capital expenditure                              103.9                       109.7                   (5.3)%
Net debt                                       1,228.8                       951.9                      n/a




•   Group retail profit up 34% as reported, ahead 18% on an underlying
    basis (2)



•   B&Q sales up nearly 13% with profit ahead 16.7%



•   Castorama France delivers sales and profit up 3.6% and 19.0%
    respectively in local currency



•   Castorama integration progressing well



•   KESA Electricals still facing tough market conditions, retail profit
    for the ongoing business declined £2 million in this seasonally less 
    significant quarter



•   Plans on track for second quarter demerger of KESA Electricals



Kingfisher Chief Executive Gerry Murphy said:



'This is another strong quarter from B&Q and Brico Depot, and Castorama France
is now making good progress.  Comet, Darty and BUT all achieved a modest sales
growth but margins suffered in a generally difficult French market.'


(1)   Retail sectors only, excludes property, acquisition goodwill amortisation, 
      exceptional items and other operating costs

(2)   Excluding losses from the recently sold German electricals brand ProMarkt 
      and currency translation gains




Kingfisher plc has today announced trading results for the first quarter to 3
May 2003, with retail sales ahead 9.2% to £2.6 billion.  On a like-for-like
basis, sales grew 4.1%.



Reported retail profit was ahead 34.4% to £154 million, benefiting from the
elimination of losses from the recently-sold German electricals business
ProMarkt and currency translation gains arising on restating euro denominated
profit into sterling.  On an underlying, constant currency basis, retail profit
was ahead 18%.



The Group's Home Improvement business grew total sales by 17%, up 6.5% on a
like-for-like basis.  Strong like-for-like growth was achieved in the UK,
France, Italy and China.  Reported retail profit was up nearly 30% to £132
million.  Excluding the effect of currency translation gains, retail profit was
ahead 26%.



The KESA Electricals business continues to face tough market conditions in
continental Europe for both electricals and furniture products.  Total sales for
the quarter, excluding ProMarkt, grew 9.1% but declined 1.3% on a like-for-like
basis.  Reported retail profit rose by nearly 72% in the quarter reflecting the
elimination of German losses and currency translation gains.  Profit for the
ongoing KESA business fell 16% at constant exchange rates.



A more detailed sector analysis appears on the following pages.





Company profile



1. Kingfisher is Europe's leading home improvement retailer and is ranked number
three in the world. With more than 600 home improvement stores across the globe,
the Group is the world's most international home improvement retailer, enjoying
market leading positions in the UK, France, Poland, China and Taiwan.  Sales for
the Home Improvement sector for the year to 1 February 2003 were more than £6.7
billion, with a retail profit of more than £534 million.  Kingfisher also has a
strategic alliance with Hornbach, Germany's leading Home Improvement warehouse
retailer, which operates 100 stores across Europe.



2. KESA Electricals operates more than 650 stores in seven countries and is
Europe's third largest electricals retailer.  As well as holding the leading
position in France with Darty and BUT and the number two position in the UK
through Comet, it also enjoys leading positions in Belgium, the Czech Republic
and Slovakia.  Sales for the year to 1 February 2003 were £3.9 billion, with
retail profit of £160 million.


HOME IMPROVEMENT


                             Sales £m             Total            LFL         Retail profit (1)             Total
                                                  change          change              £m                    change
                         2003         2002          %                %          2003        2002               %
UK                    1,071.0        945.6         13.3              7.1        82.2        68.7             19.7
France(2)               582.7        463.1         25.8              6.5        44.0        29.5             49.2
International           218.7        191.1         14.4              3.2         6.5         4.0             62.5

TOTAL                 1,872.4      1,599.8         17.0              6.5       132.7       102.2             29.8


(1)  Restated to include e commerce losses for both years (2003 £0.9 million; 
     2002 £3.1 million)
(2)  Costs of the French corporate head office have been reallocated, in both 
     years, to other operating costs. (2003 £2.1million; 2002 £4.0million)


                                    Store numbers                          Selling space
                                                                             (000 sq.m.)
                                  2003         2002                   2003                   2002
UK                                 321          317                2,030.2                1,896.0
France                             163          152                1,239.7                1,184.0
International                      128          114                  919.8                  807.3

TOTAL                              612          583                4,189.7                3,887.3


UK



B&Q benefited from favourable spring weather with particularly strong sales in
seasonal products, showroom ranges and power tools. Growth in each of these
categories was boosted by a number of new ranges. In showroom, the 'it' kitchen
range was launched across the Supercentre estate. To support this growth, B&Q
has also invested in a dedicated showroom fulfilment centre that is now
delivering nearly 2,000 orders direct to customers every week. Power tools
continued to benefit from the success of the Performance Power own brand range
which, during the period, consolidated its position as the UK's number one power
tool range.



Gross margin improved in the quarter, contributing to the overall increase in
operating margin. B&Q continued to invest in staff training, with staff costs
growing slightly ahead of sales.



Four B&Q Warehouses opened in the quarter, bringing the total to 96, and the
chain now accounts for 57% of B&Q's total UK sales space.



B&Q's trial of the 'mini-Warehouse' store format continued during the period,
with the four new stores and four refurbished stores all trading well.
Mini-Warehouse is an update of the Supercentre format with greater stock
density, B&Q Warehouse-style racking and a significant extension to the range
typically seen in Supercentre stores. A number of Supercentres are likely to be
revamped into the mini-Warehouse format during the second quarter, with five new
or extended mini-Warehouses planned to open before the year end.



B&Q grew total sales by 12.8%, up 6.3% on a like-for-like basis.  Retail profit
was ahead 16.7%. Screwfix grew sales by 22%, with profit growing well ahead of
sales.



FRANCE



Also benefiting from favourable weather, Castorama France grew sales by 3.6% in
local currency terms, a like-for-like increase of 2.1%. Sales growth in garden
products, building materials, bathrooms and flooring was strong, driven by a
more competitive pricing position and Castorama's continued focus on range
improvements.



In local currency, retail profit was up 19% in the quarter, benefiting from the
improved sales and substantially reduced pre-opening costs. Initiatives such as
product cross-marketing, gondola ends, cash-ends and stock management were in
place throughout the quarter and helped drive sales. Testing also began on range
merchandising, pricing on key lines and in-store signage.



Brico Depot continued its strong growth with total sales up 42% in local
currency and like-for-like sales up 17.6%, following last year's flat growth
which was adversely impacted by the introduction of the euro. This was driven in
particular by strong sales of building materials, new bathroom ranges and new
merchandising of kitchen ranges.



Expansion continued during the quarter with the opening of two new stores, one
of which was a transfer from Castorama, bringing the total to 58. A further five
are planned to open in the remainder of the year. In local currency, retail
profit was up by more than 80% in the quarter.


INTERNATIONAL



Kingfisher's international business grew operating profit by £2.5 million in the
quarter, with a  strong profit performance by Castorama in Italy and Poland,
Reno-Depot in Canada and the withdrawal from the loss-making Castorama Germany
operation which was announced last year.



Total sales grew by more than 14%, with like-for-like sales of 3.2% held back by
flat like-for-like sales at Reno-Depot, the sale of which is expected to be
completed towards the end of the summer.



Castorama Italy generated total sales growth of 24.5%, up 13.5% on a
like-for-like basis. Profit was ahead by 40%. One new store opened during the
quarter bringing the total to 15.



Castorama Poland had a tougher start to the year with poor weather having a
heavy impact on first quarter sales. Although total sales growth was 5.4% in
local currency terms, like-for-like sales showed only marginal growth.  Despite
the relatively lower sales growth, Castorama Poland managed operating costs and
delivered a 21% uplift in operating profit.



B&Q China had an excellent quarter with like-for-like sales growth of more than
20%. With one new store opening in the quarter taking the total to nine, B&Q is
now the leading home improvement retailer in China. Profits of the B&Q Taiwan
joint venture declined in a sluggish economy.


ELECTRICAL & FURNITURE


                             Sales £m              Total            LFL          Retail profit (1)         Total
                                                   change          change              £m                 change
                         2003       2002             %               %          2003        2002             %
France                 416.6       371.5            12.1           (2.3)        25.7        26.1           (1.5)
UK                     283.2       277.7             2.0           (0.3)         0.8         0.3           166.7
International           60.4        47.4            27.4             0.6       (5.2)       (3.3)             n/a
Sub-total              760.2       696.6             9.1           (1.3)        21.3        23.1           (7.8)
Germany                    -       114.4             n/a             n/a           -      (10.7)             n/a

TOTAL                  760.2       811.0           (6.3)           (1.3)        21.3        12.4            71.8


(1)  Restated to include ecommerce results for both years. (2003 £0.7 million 
     profit 2002; £0.9 million loss)

                               Store numbers                          Selling space
                                                                        (000 sq.m.)
                             2003         2002                  2003                   2002
France(2)                     295          278                 541.8                  489.4
UK                            250          258                 240.1                  233.3
International                 107          100                 103.6                   90.1
Sub total                     652          636                 885.5                  812.8
Germany                         -          189                     -                  229.0

TOTAL                         652          825                 885.5                1,041.8


(2)   Electrical & Furniture France includes only those stores consolidated in 
      the Group's figures.  Electrical & Furniture France also operates 128 
      non consolidated franchise stores with 337,000 square metres of selling
      space


FRANCE



The French electricals market continued to decline, suffering from continued
weak consumer confidence. Reported profit for France was down 1.5% but, after
excluding currency translation gains, fell by nearly 11%.



In this challenging environment, Darty saw its sales increase by 0.2% in local
currency, down 1.8% on a like-for-like basis. Strong growth continued in digital
cameras, large screen televisions, laptops and accessories. However, sales of
white products continued to decline.  The product mix, which shifted towards new
technology products, again impacted gross margin.  Darty continued its programme
of space expansion during the quarter by opening a further two stores, including
a new format at St Genevieve de Bois with greater emphasis on multimedia and
accessories.  Darty now operates 194 French stores.



Total sales at BUT grew by 3.5% in local currency, while like-for-like sales
declined by 3.7%. The furniture market also suffered from the weak consumer back
drop. Retail profit decreased 14% in local currency.








UK



The electricals market was stronger in the UK than in Continental Europe.  Comet
grew like-for-like sales of major appliances by 3.5% with dishwashers and fridge
freezers performing well.  Sales were also strong in mobile and landline phones
and laptops. Sales of brown goods fell by 5% compared to a strong comparable
quarter in 2002 during which Microsoft launched the X-Box. Sales growth within
the category again came from newer product areas such as plasma screen and LCD
televisions.



Comet opened one new 'interactive' destination store during the quarter,
bringing the total to 44.



Retail profit grew during the quarter, benefiting from ongoing margin and cost
management programmes.



Comet cooperated fully with the Competition Commission throughout the period in
connection with its ongoing review of extended warranties.


INTERNATIONAL



This includes Vanden Borre in Belgium, BCC in the Netherlands and Datart in the
Czech Republic and Slovakia.



The markets in which these businesses operate were generally challenging, with
poor consumer confidence and increasing competitive pressure. Overall, the
businesses achieved solid sales growth with a like-for-like increase of 0.6% and
total sales growth of more than 27%. However, the sales uplift achieved was
insufficient to offset the effect of margin pressure and the costs associated
with opening stores. As a result, operating losses increased marginally over the
same period last year.



                                       -ends-



This news release contains forward-looking statements based on current
assumptions and forecasts made by Kingfisher's management.  Various known and
unknown risks, uncertainties and other factors could lead to substantial
differences between the actual future results, financial situation, development
or performance of the Group and the estimates given here.  The Group accepts no
obligation to continue to report or update these forward-looking statements or
adjust them to future events or developments.



Further enquiries



Ian Harding, Director of Financial Communications
[phone]



Kingfisher plc
[phone]
www.kingfisher.com



Upcoming events:
Kingfisher Interim Results
10 September 2003


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