Weaker sterling and bumper sales at Screwfix boosts Kingfisher's top-line

Currency tailwinds and impressive results from Screwfix helped Kingfisher achieve 8.7% growth in sales last year, as UK and international operations offset declining performance in France.

The FTSE 100 company gave its final results on Wednesday, reporting £11.2bn (+8.7%) in revenue, £847m profit (+13%), and 24.4p EPS (+10.9%). Most of its sales growth was due to the Brexit-weakened pound, with constant currency gains around 0.7%.

Like for like sales at the firm's UK outfit, Screwfix, jumped 14%, and the company says it now expects to open 50 new stores this year.

Lease adjusted ROCE (Return on capital expenditure) increased 20 bps to 12.5%, whilst the firm's full-year dividend rose 3% to 10.4p, giving a yield of 3.2%.

It also announced that chairman Daniel Bernard was leaving the company after eight years at the helm, to be replaced by Andy Cosslett, the former Fitness First CEO.

CEO Véronique Laury said the performance was achieved alongside delivering key first-year strategic milestones of the company's five-year transformation plan, but warned Brexit and Le Pen had caused uncertainty:

"We have learned a lot and are aware of the challenges. Looking forward, the EU referendum has created uncertainty for the UK economic outlook and we remain cautious on the outlook for France, especially in light of the forthcoming presidential elections."

Shares in Kingfisher fell 5.64% despite the results, as the FTSE 100 continued to tumble for a second day. Kingfisher (LON: KGF) currently trades at a 2017 earnings P/E of 13.36, slightly higher than the c.12.5 ratio of Travis Perkins.