Overview

• Pre-tax profit for the half year to July 31 rose 4.1% to £338 million, with adjusted pre-tax profit reported at £368 million.
• Group sales reached £6.81 billion, up 0.8%, as like-for-like sales grew 1.9% and the UK delivered 3.9% growth, including B&Q up 4.4% and Screwfix up 3.0%.
• B&Q benefited from Homebase store closures and favourable weather, with big-ticket categories strengthening and kitchen installations up 36% year on year.
• Management now targets the top of its £480m–£540m profit range and raises free-cashflow guidance to £480m–£520m, while accelerating a £300m share buyback for completion by March.
• About £145m of extra wage and regulatory costs were flagged, which the company expects to offset through higher margins, cost actions and a £33m UK business-rates refund, as shares jumped roughly 17% in early trading.