Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
  1. Homepage
  2. Equities
  3. United Kingdom
  4. London Stock Exchange
  5. SIG plc
  6. News
  7. Summary
    SHI   GB0008025412


Delayed Quote. Delayed London Stock Exchange - 10/18 11:35:29 am
46.5 GBX   +4.12%
09/21FTSE 100 Roars Back on Tuesday, Driven by M&A Prospects
09/21Miners' FTSE 100 Top Spot Isn't Expected to Last
09/21SIG : Posts Narrowed H1 Loss Amid Sales Improvement
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

Price pressures, supply fears clip Kingfisher's wings

09/21/2021 | 06:01am EDT
FILE PHOTO: The spread of the coronavirus disease (COVID-19) in London

LONDON (Reuters) -British home improvement retailer Kingfisher reported a 62% jump in first-half profit as it rode a do-it-yourself (DIY) boom during the pandemic but concerns over inflation and product availability pushed its shares down almost 5%.

The group, which owns B&Q and Screwfix in the United Kingdom and Castorama and Brico Depot in France and other markets, said it was seeing higher than normal cost price inflation arising from certain raw materials and freight costs.

"We expect inflationary pressures to persist through H2 as higher cost inventory is sold through but as demonstrated in H1 we are committed to maintaining our strong competitive price position," CEO Thierry Garnier told reporters on Tuesday.

He said that despite supply chain disruption the group's product availability is currently above where it was in January. However, stocks of timber, cement and some products containing semiconductor chips were still below target levels.

Shares in Kingfisher were down 4.9% at 0950 GMT, paring 2021 gains to under 30%, reflecting concern over the inflationary and availability outlook.

Separately on Tuesday British building materials supplier SIG warned an industry-wide shortage of materials will likely continue this year.

Kingfisher made an adjusted pretax profit of 669 million pounds ($914.3 million) for the six months ended July 31, beating guidance and the 415 million pounds made a year earlier.

Many people have discovered or rediscovered DIY during the COVID-19 crisis as they were forced to spend more time at home.

Kingfisher's sales rose 22.2% on a constant currency basis to 7.1 billion pounds, with like-for-like sales up 22.8%.

The group said it had made a good start to its second half, with resilient demand across all markets, though third quarter to Sept. 18 like-for-like sales were down 0.6% reflecting high numbers a year ago.

Kingfisher raised its second half outlook, forecasting like-for-like sales down 7% to 3% versus previous guidance of down 15% to 5%.

It forecast a 2021-22 adjusted pretax profit of 910-950 million pounds, up from 786 million in 2020-21.

The group also declared an interim dividend of 3.8 pence, up 38%, and plans to return 300 million pounds to shareholders through a share buyback.

Garnier said he had addressed many of Kingfisher's past issues with "fixes" now complete in the UK and Poland and positive results in France from a strategy to repair ranges.

The group plans to accelerate Screwfix's expansion in the UK and Ireland, targeting over 1,000 stores from 900 previously, and will open its first Screwfix stores in France in 2022. It also plans to accelerate the expansion of Castorama Poland.

($1 = 0.7317 pounds)

(Reporting by James Davey, editing by Jason Neely and Keith Weir)

By James Davey

© Reuters 2021
All news about SIG PLC
09/21FTSE 100 Roars Back on Tuesday, Driven by M&A Prospects
09/21Miners' FTSE 100 Top Spot Isn't Expected to Last
09/21SIG : Posts Narrowed H1 Loss Amid Sales Improvement
09/21FTSE Rises, Stagecoach Shares Motor Ahead on Takeover Talk News
09/21SIG : Britain's SIG eyes strong earnings but supply snags to persist
09/21SIG : Earnings Flash (SHI.L) SIG Posts H1 Revenue GBP1.11B
09/21SIG : Earnings Flash (SHI.L) SIG Reports H1 Loss GBX-0.70
09/21Sig plc Reports Earnings Results for the Half Year Ended June 30, 2021
09/21SIG plc acquired F30 Building Products Limited for £4.4 million.
09/10SIG : Liberum Lifts SIG To Buy From Hold, Boosts PT
More news
Analyst Recommendations on SIG PLC
More recommendations
Sales 2021 2 185 M 3 008 M 3 008 M
Net income 2021 -1,80 M -2,48 M -2,48 M
Net Debt 2021 314 M 433 M 433 M
P/E ratio 2021 -233x
Yield 2021 1,32%
Capitalization 549 M 754 M 756 M
EV / Sales 2021 0,40x
EV / Sales 2022 0,37x
Nbr of Employees 6 500
Free-Float 56,9%
Duration : Period :
SIG plc Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends SIG PLC
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 8
Last Close Price 46,50 GBX
Average target price 61,21 GBX
Spread / Average Target 31,6%
EPS Revisions
Managers and Directors
Ian Ashton Chief Financial Officer
Andrew James Allner Non-Executive Chairman
Marc Touitou Group Chief Information Officer
Alan Charles Lovell Senior Independent Non-Executive Director
Gillian Dawn Celia Kent Non-Executive Director
Sector and Competitors
1st jan.Capi. (M$)
SIG PLC47.71%754
FERGUSON PLC18.75%32 226
REECE LIMITED19.39%8 458
GMS INC.52.99%2 002