Kingfisher Sees 500 Million-Pound Profit Boost From Laury Planby
Kingfisher Plc, Europe’s largest home-improvement retailer, said measures being introduced by its new chief executive will boost profit by 500 million pounds ($715 million) annually after five years.
Fleshing out her strategy for the business, Veronique Laury unveiled plans to return 600 million pounds to shareholders over three years, in addition to normal dividends. The return will probably take the form of a share buyback, London-based Kingfisher said in a statement Monday.
“The size of the five-year opportunity is significant,” Laury said in the statement.
Kingfisher investors have waited for almost 10 months to learn what rewards they can expect from Laury’s strategy to unify sourcing and operations. Competition for the company’s B&Q chain may have just got tougher in the U.K. after Wesfarmers Ltd. agreed to acquire rival Homebase.
As a result of the changes, Kingfisher expects to incur cash costs of 800 million pounds.