B&Q boss set for windfall as goals met
KINGFISHER boss Ian Cheshire is in line for a windfall payout after the retailer said it was on track to meet analyst forecasts for a full-year profit of £800m.
Cheshire is likely to receive shares worth up to £6.14m, after the owner of the B&Q chain beat two main targets set out in its 2008 performance share plan, relating to earnings per share and total shareholder return over four years to January.
Delivering its fourth quarter trading statement, Kingfisher said sales rose by four per cent to £2.36bn, after a strong performance at its Castorama stores in France helped to offset a decline in sales in the UK and Ireland.
Weak consumer confidence impacted like-for-like sales growth at B&Q stores in the UK and Ireland, which fell 2.5 per cent in the quarter. This compared with analysts’ expectations of a fall of around two per cent.
Meanwhile, like-for-like sales at Castorama stores rose 2.9 per cent and were up 5.7 per cent at Brico Depot France stores.
Cheshire said yesterday that the firm was now looking to expand significantly in its established markets of Poland, Russia, Turkey and Spain, as well as seeking “in-fill” opportunities in France and Britain.
The group, which has about 950 stores across eight countries in Europe and Asia, also unveiled a management reshuffle that will see finance director Kevin O’Byrne become chief executive of B&Q.
Euan Sutherland, the current chief executive, will become group chief operating officer while international chief executive Peter Hogsted will step down from his role later on in the year.
Shares fell 0.32 per cent to 278p last night.