B&Q owner Kingfisher today said soaring utility costs, household debt and fears over the housing market had all contributed to a sharp decline in profits.
Strong performances in continental Europe and Asia were more than offset by weakening home sales in the DIY sector in the UK as annual underlying profits fell from £661.4m to £445.7m.
Like-for-like sales - which exclude the effect of new stores - fell 7.8% during the 52 weeks ended January 28 and Kingfisher said that the home improvement market had continued to weaken since then.
