Kingfisher, which owns the B&Q DIY chain in Ireland, has posted an 11% fall in profit as debt-laden shoppers cut back in spending, but said recent warm weather had helped the market to stabilise.
Europe's biggest home-improvements retailer said today that profit before tax, goodwill and one-off items was £396.6m in the year ended 3 February, which was in line with analysts' expectations.
However, Kingfisher chief executive Gerry Murphy said the group fared much better in the second half of 2006, and sales in the opening weeks of the current financial year have been boosted by the mild spring weather, which has seen increased demand for seasonal products.
But analysts said prospects for the group still looked tough, with interest rates rising and some forecasting that Britain's housing market is close to a peak.
Kingfisher operates more than 700 stores in 11 countries.
