Screwfix bosses press ahead with ambitious expansion plans
The owners of Screwfix say trading in the first quarter remained stable with sales of £3.3bn.
Kingfisher, which owns Somerset based Screwfix and B&Q, said there was a resilient performance in core and big-ticket categories which makes up 82 per cent of sales.
The company said there has been improved trading since early April and a continued resilience in core and big-ticket trading.
There was a a good performance at B&Q given the impact of weather on seasonal sales; strong market share gains and positive LFL at Screwfix with trade customers continuing to see strong pipelines.
The firm opened two Screwfix stores in France and is targeting up to 85 new stores across the UK, Ireland and France.
As a result the company is predicting a £634m profit by the end of the year in line with expectations.
Chief executive Thierry Garnier said: “As we move through our key trading season, we are pleased to see that sales in our core and ‘big-ticket’ categories, which make up over 80 per cent of our total sales, are showing continued resilience.
“The unusually poor spring weather in the UK and France affected our seasonal sales in the quarter, impacting demand for items such as garden and outdoor products. We have however seen an improvement in trading since early April, and anticipate a release of some pent-up demand as the weather continues to improve. Our inventory remains healthy and, in aggregate, is reducing in line with our expectations.
“We continue to execute our strategy at pace, making good progress across all our key priorities. Screwfix is trading well and seeing particularly strong demand from trade customers, with total sales up 6.5 per cent. The business continues to drive its store expansion plans in the UK, Ireland and France. E-commerce sales were another highlight in the quarter, up 4.7 per cent.
“Across the group, we are maintaining a sharp focus on competitive pricing, while balancing inflationary pressures. With the continued easing of raw material prices and freight costs, we expect to see lower product cost inflation in H2.
“We are comfortable with market expectations for the business this year, and confident in delivering growth ahead of our markets, strong cash generation, and higher returns to shareholders over the medium-term.”
