Interim Results - Part 1

Kingfisher PLC
20 September 2007

EMBARGOED UNTIL 0700 HOURS
Thursday 20 September 2007

                                 Kingfisher plc
              Interim results for the 26 weeks ended 4 August 2007

Group Financial Summary

                                          2007/08           2006/07          Reported        Constant     Like-for-like
                                                                              Change      Currency Change (LFL) change

Retail sales (1)                          £4,775m           £4,349m            +9.8%          +10.7%          +4.3%

Retail profit (2)                         £240.1m           £231.5m            +3.7%           +4.2%

Adjusted pre-tax profit (3)               £189.6m           £178.5m            +6.2%

Adjusted post-tax profit (3)              £133.4m           £116.9m           +14.1%

Adjusted basic EPS (3)                     5.7p               5.1p            +11.8%

Interim dividend                           3.85p             3.85p               -

Net debt                                 £1,289.9m     (£1,293.8m as at 3 February 2007)



(1)     Joint Venture (JV) and Associate sales are not consolidated.

(2)     Retail profit is stated before central costs, exceptional items,
acquisition intangibles amortisation and share of joint venture and associate
interest and tax.

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



First half highlights

•        Retail sales up 10.7%, +4.3% LFL.
•        Adjusted pre-tax profit ahead 6.2%.
•        Exceptional profit of £37 million, primarily on freehold property
         disposals.
•        Group tax rate 32.0% (2006/07: 34.5%).
•        Net debt maintained at £1.3 billion.
•        Interim dividend maintained.

Operating highlights

•        International (ex-UK, now representing over half of Kingfisher's sales)
         delivered strong sales, up 14%, and retail profit growth of 11%.
•        In France, sales grew 10% and retail profit grew 11%, boosted by a
         strong performance from Castorama.
•        Elsewhere in Europe and Asia, sales grew by 25% and retail profit by
         10%, boosted by a very strong performance in Poland, offsetting a 
         weaker result in China.
•        In the UK, B&Q grew sales 5% and retail profit before store revamp
         costs by 13%. Good progress was made modernising stores and launching 
         new products.
•        Forty-six net new stores opened creating 5,000 new jobs.


Statutory reporting
                                                              2007/08             2006/07              Reported
                                                                                                        Change
Pre-tax profit                                                £229.4m             £223.1m                +2.8%

Post-tax profit attributable to equity shareholders           £159.6m             £168.5m               (5.3)%

Basic EPS                                                       6.8p                7.2p                (5.6)%



Gerry Murphy, Group Chief Executive, said:

'Our international businesses, which now account for more than half of
Kingfisher's sales, continued to deliver strong sales and profit growth. Good
progress was made strengthening Castorama in France, expanding our younger
international businesses and establishing new opportunities in Europe and Asia.
The outlook for our international markets remains generally positive.

 'In the UK, all our businesses delivered sales growth in a market which remains
relatively weak. We expect the second half to be tough as recent interest rate
rises and current uncertainty in financial markets affect customer behaviour.
However, B&Q's development plan is progressing well, with more stores now in a
modern format and new products and services progressively being launched, all
supported by a major new advertising campaign.

'Our international diversity and buying scale are key competitive advantages and
we will continue to capitalise on them to provide shareholders with sustainable,
long-term growth and returns.'

REVIEW OF THE FIRST HALF

The remainder of this release sets out Kingfisher's performance for the half
year in three main sections:

  • Progress on key strategic priorities
  • Operational review
  • Financial review and unaudited interim financial statements.

Progress on key strategic priorities

1) Strengthening developed businesses

B&Q in the UK and Castorama in France, representing almost two thirds of
Kingfisher's sales.

These established businesses are focused on strengthening their leadership
positions by increasing the sales productivity of existing stores and improving
cost efficiency. The majority of current investment in these businesses is in
modernising existing stores and business infrastructure, with modest capacity
expansion.

Good progress has been made with B&Q's development plan. Twenty-one large stores
are now trading in the new format and the introduction of new products into
stores is progressing well, and will be further supported by a major new
advertising campaign, launched yesterday.

In France, Castorama introduced new decorative, kitchen and bathroom ranges and
revamped four more stores, supported by the first ever national advertising
campaign. Over 40% of selling space now trades in the new format which continues
to outperform comparable older stores.

2) Expanding proven growth businesses

Includes Brico Depot in France, Screwfix in the UK and businesses in Poland,
Italy, China, Taiwan, Ireland and Turkey. In total they generate over one third
of Kingfisher's sales.

These younger businesses already enjoy strong market positions and have reached
a scale where they contribute strongly to Kingfisher's sales and profit growth
and deliver good economic returns. Their main priority is to continue to expand
quickly to capitalise on their market leadership.

Forty-two net new stores were opened in the first half, taking the total in this
category to 319, with a similar number planned to open over the second half.

3) Establishing new opportunities for the future

Includes Spain, Russia and Trade Depot in the UK.

Three stores opened during the first half taking the total trading to 20, with a
further two stores planned for the second half.

4) Capitalising on buying scale and international diversity

During the first half, Kingfisher continued to develop own-brands and extend
direct sourcing from low-cost producers. Direct sourcing shipments were up 40%
year on year and the proportion of total sales from own-brand products grew to
22% (from 20% last year). The 'Colours' brand, which extends to paint,
wallpaper, curtains, blinds, cushions, bedding and lighting is now established
as a major international decorative brand.

Operational Review - UK

For the 26 weeks ended 4 August 2007*

Retail sales £m                                    2007/08             2006/07              Reported              % LFL
                                                                                            % Change             Change
UK                                                 2,321.0             2,169.7                  7.0%               1.9%


Retail profit £m                           2007/08         2006/07           Reported
                                                                             % Change
UK                                            85.0            90.5             (6.1)%


* Due to the 53rd week in UK reporting for 2006/07, the Reported Change % above
compares 26 weeks ended 4 August 2007 with 26 weeks ended 29 July 2006 as
reported in 2006/07.  On this basis B&Q LFL was 2.9%. However, for better
alignment, the actual reported change in LFL sales of 2.0% compares 26 weeks
ended 4 August 2007 to 26 weeks ended 5 August 2006.

UK includes B&Q in the UK, Screwfix and Trade Depot.

UK Market

According to the British Retail Consortium, sales of non-food products in the UK
grew by 5% in the first half (+2% LFL). However, home improvement sales
continued to be weak with sales of outdoor products impacted by poor weather.

B&Q

B&Q's total reported sales were £2.1 billion, up 4.8% (+2.0% LFL) with sales
growth in decorative, building and kitchen products partially offset by weak
outdoor product sales.

Retail profit declined £4.8 million to £77.8 million in the first half (2006/07:
£82.6 million), after £15.8 million additional costs for revamping large stores.
Gross margin percentage was flat reflecting clearance activity ahead of new
product launches in H2. Underlying cost inflation was 3% with net new space
growth of 2%.

New product ranges

B&Q is on track to have updated around 60% of all its product ranges by the end
of the year. Updated ranges of wall and window coverings, soft furnishings,
kitchens, bathrooms and designer radiators have been introduced into stores and
are performing well. Recently, a stylish new range of decorative products with a
wider choice of paints, including the premium brand Fired Earth, has been
launched, backed by a major advertising campaign.

Customer service

Additional staff hours continue to be deployed in the kitchen, bathroom,
flooring and power tools areas of the larger new format stores. Eight hundred
in-store style managers have received practical decorating skills training, to
enable them to advise customers on how to style rooms and offer advice on
projects such as laying flooring and tiling. Trials of new in-store services,
such as cavity wall insulation and carpet and flooring fitting, were also
launched during the period.

The B&Q website has been revamped, with customers now able to use free room
design software, view more than 35,000 products online and check availability in
their local store. In addition, 6,500 products continue to be available for home
delivery.

Store development

B&Q is on track to have modernised over half of its store space by the year end.
A further eight large store revamps, which encompass more clearly defined
shop-within-shop sections, room-set displays and more space allocated to
kitchens, bathrooms, flooring and tiling areas were completed in Q1. A second
phase of eight large store revamps started in June.

The three large new format stores now open for more than one year have delivered
average sales densities of over £200 per square foot, 30% higher than older
format large stores, as customers spend more in the expanded kitchen, bathroom
and associated project areas. Of these three, Wednesbury in the West Midlands
was a revamp of an existing store and has delivered an annualised sales uplift
of almost 20% with much of the new product yet to flow into store. The next 16
revamps, which only have an average of 19 weeks trading data, are showing
double-digit growth, despite having not traded through key kitchen and bathroom
seasons.

B&Q now has 115 large stores (21 in the latest format) and 210 medium stores (of
which 135 have been modernised).

UK Trade

Screwfix sales grew 30.3%, driven by an expanded catalogue and the roll-out of
the new trade counters, which provide customers with immediate product
availability. An additional 30 outlets opened during the first half, taking the
total to 68, with around 20 further openings planned for H2. To support
continued growth, a second distribution centre was commissioned at the end of H1
and will be fully operational by the end of the year.

Retail profit was broadly flat year on year, reflecting start-up costs for the
second distribution centre, and trade counter pre-opening costs. Trade Depot,
which targets the general builder and specialist trade customer, opened two new
stores, taking the total trading to six.

Operational Review - FRANCE

For the 26 weeks ended 4 August 2007

Retail sales £m                            2007/08         2006/07           Reported           Constant          % LFL
                                                                             % Change           % Change         Change
France                                     1,614.4         1,497.0               7.8%               9.5%           3.5%

Retail profit £m                           2007/08         2006/07           Reported           Constant
                                                                             % Change           % Change
France                                       104.7            95.5               9.6%              11.3%


2007/08 £1 =1.4774 euro (2006/07 £1 = 1.4554 euro)

All percentage movements below are in constant currencies.

In France, Kingfisher's total sales grew 9.5% (LFL+3.5%).  Seven new stores were
opened in the year and four revamped, adding 4% new space. Banque de France data
shows that growth in comparable DIY store sales* was around 4.3% in the year to
date. Kingfisher's business outperformed the market by delivering comparable
stores sales growth of 5.2% (on the same basis as Banque de France), despite a
more price competitive market and disruption from store revamps.

Retail profit of £104.7 million grew 11.3% compared to the same period last
year. Gross margins were down 20 basis points as higher own-brand sales
penetration and an improved sales mix offset some of the market pricing
pressure. Net cost inflation in France continues to run at around 2%.

*Banque de France data including relocated and extended stores

CASTORAMA

Castorama grew total reported sales by 4.9% to £882.7 million (+3.4% LFL, +6.3%
on a comparable store basis), driven by good performances of new ranges such as
kitchens, bathrooms and decorative products, and its continued store
modernisation programme.

New format stores have delivered average sales densities 19% higher than older
format stores. Five revamps were completed during the first half and a further
one planned for the balance of year, with 41% of total selling space now in the
new format.

BRICO DEPOT

Sales increased 15.6% to £731.7 million (+3.6% LFL), driven by new store
openings and the publication of an additional catalogue. Sales were strong in
building and decorative categories, supported by new ranges of wood panelling,
power tools and indoor paint.

Seven new stores opened in the first half taking the total to 88. One further
store opening is expected in the second half. The new SAP information technology
platform is now fully operational.

Operational Review - REST OF EUROPE

For the 26 weeks ended 4 August 2007

Retail sales £m                         2007/08         2006/07             Reported            Constant          % LFL
                                                                            % Change            % Change         Change

Rest of Europe                            612.6           473.4                29.4%               29.9%          17.3%


Retail profit £m                        2007/08         2006/07            Reported            Constant
                                                                           % Change            % Change
Rest of Europe                             61.4            52.1               17.9%               17.9%


Rest of Europe includes Poland, Italy, Spain, Koctas JV in Turkey, Ireland,
Russia and Hornbach in Germany. Sales from Koctas and Hornbach are not
consolidated.

All percentage movements below are in constant currencies.

Sales grew by 29.9% to £612.6 million (+17.3% LFL) with 12 more stores trading
compared to the same period last year. Retail profits increased by 17.9% to
£61.4 million, reflecting strong performances in Poland and Turkey. Development
losses in Russia and Spain were in line with the previous year.

Across the first half five new stores were opened, including two in Poland, one
in Russia and two in Turkey.

Poland

Sales increased 42.0% to £330.8 million (+31.1% LFL). Strong consumer spending
and a buoyant construction market which started earlier than usual in mild
weather, boosted H1 trading. Retail profit increased 61.9% to £45.5 million as
good cost control, increased own-brand penetration and favourable timing of
store openings helped to offset wage inflation.

Two new Castorama stores opened, taking the total to 37, with a further two
planned for the second half. Last year, Brico Depot was also launched in Poland
to test demand for a smaller, more trade-orientated store and a second opened in
September.

Italy

Total sales grew 2.0% to £159.3 million (+1.2% LFL) in a weak consumer market.
Retail profit of £14.6m (2006/07: £16.3 million) reflected improved sourcing
offset by pricing pressure in a slow market.

Two stores were revamped in H1 and one relocated. In the second half, one revamp
and one new medium format store are planned.

In Ireland (seven stores), sales grew 8.8% with one new store planned for the
second half. In Spain (10 stores) sales grew 44.4% with a further store planned
for the second half. In Russia (four stores), one new store opened and a further
store is planned to open by the year end. Koctas in Turkey (12 stores), a 50%
joint venture, continued to grow sales and doubled its profit contribution. Two
new stores were opened, with four more stores planned this year. Hornbach, in
which Kingfisher has a 21% economic interest, contributed £3.9 million to retail
profit (£6.5 million in H1 2006/07) in a difficult German market.

Operational Review - ASIA

For the 26 weeks ended 4 August 2007

Retail sales £m                         2007/08         2006/07             Reported            Constant          % LFL
                                                                            % Change            % Change         Change
Asia                                      227.1           209.0                 8.7%               14.9%           4.1%


Retail profit £m                        2007/08         2006/07            Reported            Constant
                                                                           % Change            % Change
Asia                                     (11.0)           (6.6)             (66.7)%             (74.6)%


Asia includes China, Taiwan, and South Korea. Taiwan JV sales are not
consolidated.

All percentage movements below are in constant currencies.


Asia sales grew 14.9% (+4.1% LFL) to £227.1 million with retail losses of £11.0
million (2006/07: £6.6 million).

B&Q China

Sales increased 13.9% to £220.4 million (+4.4% LFL), reflecting nine new stores
trading compared to the same period last year and the development of new ranges.
B&Q China's home decoration service designed and fitted out 18,000 apartments
during the first half, up 24% on the prior year. Retail losses were £9.5 million
(2006/07: £5.1 million).

Finalisation of B&Q China's 2007 supplier agreements was delayed until
clarification by the authorities in August 2007 of new regulations covering
trading terms between retailers and suppliers. As a result of required changes
to certain of its supplier arrangements, B&Q China's H1 result was reduced by £4
million, with a further £9 million impact anticipated in H2. B&Q China expects
to conclude economically satisfactory supplier agreements under the new
regulations during 2008.

Two new stores were opened, including the first store in Hong Kong in June,
consolidating B&Q's position as clear market leader in China with 59 stores. A
further five new store openings are planned for the balance of year.

B&Q Taiwan, a 50% joint venture, operating from 21 stores, delivered a small
profit in a market that continues to be affected by weak consumer confidence.
One new store is planned for the second half.

Financial Review

Financial summary

Group sales grew 9.8% to £4.8 billion (2006/07: £4.3 billion), up 10.7% on a
constant currency basis.  During the first half, an additional 46 net new stores
were added, taking the store network to 764, including joint ventures. On a
like-for-like basis, Group sales were up 4.3% (2006/07: 0.5% decrease).

Retail profit grew 3.7% to £240.1 million (2006/07: £231.5 million), up 4.2% on
a constant currency basis. Profit growth was driven by higher sales, operating
cost efficiency improvements, and progress in international sourcing and
own-brand development.  This was partly offset by operating cost inflation and
investment in developing businesses.

Central costs increased 2.7% to £18.7 million (2006/07: £18.2 million). For the
full year, central costs are expected to be broadly in line with last year.

Operating profit increased by 3.1% to £257.1 million (2006/07: £249.4 million).
Operating profit benefited from income on exceptional items of £37.2 million
(2006/07: £42.0 million). The Group recorded £42.9 million profit relating to
property disposals, £10.7 million costs incurred on the closure of B&Q South
Korea and £5.0 million income on the receipt of a loan previously written off as
an exceptional item. Included within property disposals is £40.0 million related
to the sale of the freehold interest in the Worksop distribution centre in the
UK.

Following the closure of 15 B&Q Supercentre stores in the UK in January 2006,
almost half of the space has now been sublet.

Net interest costs increased to £27.7 million (2006/07: £26.3 million). The
impact of higher interest rates has been partially offset by an increase in net
interest return on the defined benefit pension scheme.

The effective tax rate on profit before exceptional items, prior year
adjustments and adjustments in respect of changes in tax rate is 32.0% (2006/07:
34.5%), based on current expectations for the 2007/08 full year. This reduction
is driven by a change in the geographic profit mix of the Group.

Profit after tax (attributable to equity shareholders) decreased 5.3% to £159.6
million (2006/07: £168.5 million).

Adjusted basic earnings per share were up 11.8% to 5.7p (2006/07: 5.1p).  Basic
earnings per share were down 5.6% to 6.8p (2006/07 7.2p).

The interim dividend is proposed at 3.85p per share (2006/07: 3.85p), flat year
on year.

Net debt decreased marginally to £1,289.9 million (£1,293.8 million at 3
February 2007).  The Group generated £389.9 million of cash from operating
activities in the period, down £37.5 million on the prior year, mainly as a
result of higher stock levels. Gross capital expenditure increased 6.4% to
£282.8 million (2006/07: £265.8 million). Disposal proceeds decreased 59.0% to
£86.1 million (2006/07: £210.2 million). Receipts included £73 million on the
sale of the freehold interest in the Worksop distribution centre (2006/07: £198
million of proceeds realised from sale and leaseback of seven B&Q UK large
format stores). Net capital expenditure for the period was £196.7 million (2006/
07: £55.6 million).

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

                                                                             2007/08          2006/07        Increase /
                                                                                                             (decrease)
                                                                                  £m               £m

Profit before taxation                                                         229.4            223.1              2.8%

Exceptional items                                                             (37.2)           (42.0)
Profit before exceptional items and taxation                                   192.2            181.1              6.1%

Financing fair value remeasurements                                            (2.7)            (2.7)
Amortisation of acquisition intangibles                                          0.1              0.1
Adjusted pre-tax profit                                                        189.6            178.5              6.2%

Income tax expense on pre-exceptional profit                                  (57.0)           (62.4)
Income tax on fair value remeasurements                                          0.8              0.8
Adjusted post-tax profit                                                       133.4            116.9             14.1%
Minority interest                                                                1.0              1.4
Adjusted post-tax profit attributable to equity shareholders                   134.4            118.3             13.6%

Risks

The Board considers risk assessment, identification of mitigating actions and
internal controls to be fundamental to achieving Kingfisher's strategic
corporate objectives.  The principal factors to be considered when assessing
Kingfisher's ability to achieve its objectives are:

  • Economic and market conditions which influence consumer spending
  • Cultural, regulatory and political risks in new markets
  • Maintaining competitive product ranges, prices and customer service
  • Continuing to innovate in rapidly changing markets
  • Attracting and retaining the best people
  • Sufficiency of financial resources
  • Protecting reputation of Kingfisher and its subsidiaries
  • Customer and employee in-store safety
  • Environmental trends and risks

Operational Review - DATA BY COUNTRY as at 4 August 2007


                                                     Store numbers               Selling space                Employees
                                                                                  (000s sq.m.)                    (FTE)
B&Q                                                            325                       2,343                   27,327
UK Trade                                                        74                          25                    2,568
Total UK                                                       399                       2,368                   29,895
Castorama                                                       98                         972                   13,377
Brico Depot                                                     88                         472                    6,379
Total France                                                   186                       1,444                   19,756
Poland                                                          37                         305                    7,031
Italy                                                           27                         171                    2,188

Ireland                                                          7                          46                      521
Spain                                                           10                          51                      641

Russia                                                           4                          36                    1,241

Turkey                                                          12                          65                    1,343
Total Rest of Europe                                            97                         674                   12,965
China                                                           59                         560                   10,133
Taiwan                                                          21                          97                    1,867
South Korea                                                      2                          12                      108
Total Asia                                                      82                         669                   12,108
Total                                                          764                       5,155                   74,724

Operational Review - SECOND QUARTER BY GEOGRAPHY  - 13 weeks to 4 August 2007

                        Retail sales £m              %            %LFL           Retail profit £m              %
                  2007/08          2006/07        Change         Change        2007/08       2006/07        Change
                                                (Reported)                                               (Reported)
UK                   1,154.7       1,140.5         1.2%          (1.5)%         49.6          68.5          (27.6)%
France                849.8         796.1          6.7%           2.1%          65.0          55.3           17.5%
Rest of Europe (1)    335.1         267.5          25.3%          14.0%         39.6          38.1           3.9%
Asia (2)              142.0         124.9          13.7%          9.3%          (2.7)          1.1            n/a
Total                2,481.6       2,329.0         6.6%           2.2%          151.5         163.0         (7.1)%


(1)  Rest of Europe includes Poland, Italy, Spain, Koctas JV in Turkey,
Ireland, Russia and Hornbach in Germany. Sales from Koctas and Hornbach are not
consolidated.

(2)  Asia includes China, Taiwan, and South Korea. Taiwan JV sales are not
consolidated.


Enquiries:

Ian Harding, Group Communications Director                                           020 7644 1029

Nigel Cope, Head of Communications                                                   020 7644 1030

Sarah Gerrand, 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 760 stores in 10 countries in Europe and Asia. Its
main brands are B&Q, Castorama, Brico Depot and Screwfix. Kingfisher also has a
21% interest in, and strategic alliance with, Hornbach, Germany's leading large
format DIY retailer, with over 120 stores in Germany and eight other European
countries.


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            The company news service from the London Stock Exchange